Galaxy Digital has allocated $100 million of its own capital into sUSDS, the yield-bearing stablecoin of the Sky Protocol. This move is part of a partnership with the Sky Frontier Foundation announced on September 23, 2026. The company also acquired an undisclosed amount of the governance token SKY.
The firm has integrated sUSDS as collateral for its institutional lending operations. Clients can now use the token to secure loans while continuing to earn the variable Sky Savings Rate. Galaxy manages an average loan book of $1.4 billion and serves over 1,600 counterparties.
Prior to this, Galaxy and Sky established a $500 million warehouse lending facility funded by USDS through the agent Grove. As of June 30, 2026, Galaxy reported nearly $2.5 billion in cash and stablecoins. The total supply of sUSDS reached $5.52 billion by the end of Q2 2026.
S&P Global assigned Sky Protocol a B- credit rating in August 2025. While the partnership enhances the utility of sUSDS, the company faces risks related to the variable savings rate, potential protocol exposure, and credit risk associated with the DeFi platform.
