Sky Protocol and Galaxy Digital Announce Strategic Partnership Across Lending and Capital Markets

Galaxy Digital adopts $100m of sUSDS for its treasury and lending operations, reinforcing Sky Protocol’s rapidly growing and profitable onchain savings ecosystem.

Rhea-AI Summary

Sky Protocol and Galaxy Digital (GLXY) announced a strategic partnership across lending and capital markets, centered on Galaxy adding $100 million of sUSDS to its corporate treasury and approving sUSDS as eligible collateral across its institutional trading business, which has a $1.4 billion average loan book.

Galaxy becomes one of the first public companies to hold sUSDS on its balance sheet, while clients posting sUSDS as loan collateral continue to earn the Sky Savings Rate on their full position. The partnership builds on an existing onchain credit relationship via Grove, which provides Galaxy a $500 million warehouse lending facility, and Spark, used to support GOFR. Sky Protocol enters Q3 2026 as the largest onchain stablecoin liquidity source with $5.41 billion supplied, sUSDS supply of $5.52 billion at Q2 close (up 149% year-on-year), and five consecutive profitable quarters including $107.35 million in Q2 2026 gross revenue and a $33.29 million net surplus.

Positive

• $100m sUSDS added to Galaxy’s corporate treasury and approved as loan collateral
• Galaxy institutional loan book averages $1.4 billion, now able to accept sUSDS
• Grove provides Galaxy a $500m warehouse lending facility funded with USDS
• Sky Protocol onchain stablecoin liquidity at Q3 2026 start totals $5.41b
• sUSDS supply reached $5.52b at Q2 2026 close, up 149% year-on-year
• Sky posted five profitable quarters, with Q2 2026 gross revenue $107.35m and net surplus $33.29m

Negative

• None.

Key Figures

sUSDS added to treasury: $100m Average loan book: $1.4 billion Warehouse lending facility: $500 million +5 more

sUSDS added to treasury

$100m

Galaxy corporate treasury

Average loan book

$1.4 billion

Galaxy institutional trading business

Warehouse lending facility

$500 million

Grove facility for financing Galaxy's institutional loans

sUSDS supply

$5.52 billion

Milestone at Q2 2026 close

Year-over-year supply growth

149%

sUSDS supply

Profitable quarters

five consecutive quarters

Sky Protocol

Gross revenue

$107.35 million

Q2 2026

Net surplus

$33.29 million

Q2 2026

Key Terms

warehouse lending facility, stablecoin, real-world assets

3 terms

warehouse lending facility financial

"a $500 million warehouse lending facility"

A warehouse lending facility is a short-term credit line banks or other lenders provide to finance a lender’s inventory of newly originated loans or receivables until those assets are pooled, sold, or securitized. Think of it like a temporary garage that holds and funds items before they are shipped to buyers; it matters to investors because it determines how quickly and cheaply a lender can originate and sell assets, affecting liquidity, leverage and credit exposure.

stablecoin financial

"largest source of onchain stablecoin liquidity"

A stablecoin is a type of digital currency designed to keep its value steady, often by being backed by traditional assets like money or commodities. For investors, stablecoins offer a reliable way to move money quickly across digital platforms without the value fluctuations common with other cryptocurrencies, making them useful for saving, trading, or transferring funds with less risk of sudden losses.

real-world assets financial

"The value of onchain real-world assets, excluding stablecoins"

Real-world assets are physical or financial things of value—like property, commodities, loans, or art—that exist outside digital markets and can be bought, sold, or used as collateral. For investors, they matter because they often provide steady income, reduce reliance on volatile paper markets, and can add diversification much like owning a rental property beside stock holdings. Treat them like tangible building blocks that can stabilize a portfolio and back the value of financial products.

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Galaxy adds sUSDS to its corporate treasury and approves it as institutional loan collateral, alongside a purchase of SKY; making Galaxy the first public company to hold sUSDS on its balance sheet.

CAYMAN ISLANDS, Sept. 23, 2026 /PRNewswire/ -- Sky Protocol, the largest onchain capital allocator, and Galaxy Digital (Nasdaq: GLXY), a global leader in digital assets and data center infrastructure, today announced a collaboration spanning lending and capital markets, and deepening Galaxy's use of Sky Protocol's savings token while expanding the onchain credit available to Galaxy's institutional platform, which serves more than 1,600 total trading counterparties.

As part of the collaboration, Galaxy has added $100m of sUSDS, the native savings token accessible through Sky Protocol, to its corporate treasury and approved sUSDS as eligible collateral across its institutional trading business, which carries a $1.4 billion average loan book. Clients who post sUSDS against a loan continue accruing the Sky Savings Rate on the full position for as long as the loan runs.

Galaxy is one of the first public companies to hold sUSDS on its balance sheet, deepening an onchain credit relationship that has been built for some time. That relationship began with Grove, a Prime Agent in the Sky ecosystem that serves as an institutional-grade credit infrastructure protocol and the liquidity engine of onchain finance. Grove provides Galaxy a $500 million warehouse lending facility, in which Grove acts as the warehouse lender, committing USDS capital through a dedicated lending vehicle to finance Galaxy's origination of institutional loans secured by digital assets. Galaxy has since borrowed on Spark, a second Prime Agent, to support GOFR, expanding the onchain financing available to Galaxy's institutional clients, and tying it directly to Galaxy's own onchain rate, and diversifying its funding sources for that product.

"Sky was built so the same savings rate can be made available to anyone, from an individual saver to a Nasdaq-listed balance sheet. This partnership carries that across the full breadth of institutional finance: onto Galaxy's balance sheet, through its lending book, and into its Global Markets franchise. It's a blueprint for how the traditional financial system connects to onchain capital, built with a partner willing to put its own capital first." - Greg Feibus, Global Head of Capital Markets, Sky Frontier Foundation

For Galaxy, the partnership is also a strategic entry point into the largest pool of capital onchain. Sky Protocol is the largest source of onchain stablecoin liquidity by a wide margin, with $5.41 billion entering Q3 2026 being supplied through independent allocators and into institutional tokenized funds, where it holds anchor positions in BlackRock's BUIDL and Janus Henderson's JTRSY. The partnership connects Galaxy's offerings directly to that ecosystem

"Galaxy has relied on Sky Protocol's infrastructure to support our onchain financing for some time," said Max Bareiss, Head of Lending at Galaxy. "Adding sUSDS to our treasury and as loan collateral, and deepening our GOFR financing through Sky, gives our clients more efficient access to onchain yield, backed by a savings rate we trust with our own balance sheet."

The collaboration also addresses a longstanding barrier to institutional participation in onchain yield. Corporate treasuries, funds, and allocators have approached decentralized savings products cautiously, typically waiting for a regulated counterparty to establish precedent. A partnership with a firm of Galaxy's size and credibility adds further validation, reinforcing Sky Protocol's push to strengthen its reserves and security as it earns the trust of institutions.

That progress is reflected in Sky Protocol's recent performance: sUSDS supply recently met the $5.52 billion milestone at Q2 close, up 149% in a year; and posted five consecutive profitable quarters, including $107.35 million in gross revenue and a $33.29 million net surplus in Q2 2026.

The timing also reflects broader market momentum. Tokenized savings and real-world assets rank among the fastest-growing sources of institutional collateral. The value of onchain real-world assets, excluding stablecoins, surpassed $33 billion in July 2026, roughly four times their level in early 2025. This integration moves tokenized assets into mainstream institutional finance, allowing firms to accrue a savings rate on capital while using it to back loans and trades entirely onchain.

About Sky Ecosystem

Sky Ecosystem is a global capital allocation protocol powering the Sky Savings Rate, a resilient governance-set stablecoin yield, backed by diversified institutional-grade collateral. The Sky Agent Network is an independent network of capital allocators that compete to access USDS liquidity under governance-set risk parameters and deploy it across diversified yield strategies. Returns from these deployments contribute to Sky Protocol revenue, from which Sky Governance sets the Sky Savings Rate, accessible through sUSDS, the world's largest yield-generating stablecoin. To learn more, visit skyeco.com.

About Galaxy Digital

Galaxy Digital Inc. (Nasdaq: GLXY) is a global leader in digital assets and data center infrastructure, growing the economy that runs on code. Galaxy delivers the onchain infrastructure that connects institutions to digital assets, including trading, advisory, asset management, staking, self-custody, and tokenization. Galaxy also develops and operates data center infrastructure to power AI and HPC workloads. Anchored by its Helios campus in Texas, Galaxy is building a multi-gigawatt pipeline of more than 5.7 GW of potential capacity, positioning it among the largest and fastest-growing data center developers in North America. The Company is headquartered in New York City, with offices across North America, Europe, the Middle East, and Asia. Additional information about Galaxy's businesses and products is available on www.galaxy.com.

Legal Notice and Forward-Looking Statements

The analyses, characterizations, and views reflected in this press release are those of Sky Frontier Foundation ("SFF" or "the Foundation") as of the date of publication, are judgment-based, and may change without notice. They do not constitute legal opinions, regulatory determinations, or guarantees of outcome, and should not be relied upon as a substitute for independent analysis or professional advice.

This press release is provided for general informational purposes only and does not constitute legal, financial, investment, tax, or other advice. Nothing in this press release is intended as, or should be construed as, an offer, solicitation, or recommendation to buy or sell any token, security, or other financial instrument. SFF is an independent entity and does not control the Sky Protocol or its DAO governance processes; decentralized governance decisions and protocol outcomes are outside SFF's control, and no statement in this press release should be interpreted as a commitment by the protocol's community or governance.

This press release contains forward-looking statements that are inherently uncertain and not guarantees of future performance. Actual results and events may differ materially due to risks and factors outside SFF's control, including market volatility, regulatory developments, and decisions made through decentralized governance. Readers are cautioned not to place undue reliance on forward-looking statements, and SFF undertakes no obligation to update them. All information is provided "as is" without warranty of any kind.

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SOURCE Sky Frontier Foundation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How does the Sky Protocol–Galaxy partnership expand Galaxy’s onchain credit capabilities?

Grove, a Prime Agent in the Sky ecosystem, provides Galaxy a $500 million warehouse lending facility, committing USDS capital through a dedicated lending vehicle so Galaxy can originate institutional loans secured by digital assets. Galaxy has also borrowed on Spark, another Prime Agent, to support GOFR, which expands onchain financing options for Galaxy’s institutional clients and ties that funding directly to Galaxy’s own onchain rate.

What benefit do Galaxy clients receive when posting sUSDS as loan collateral?

Clients who post sUSDS against a loan continue to accrue the Sky Savings Rate on their entire sUSDS position for the duration of the loan, allowing them to earn onchain yield while using the same capital as collateral.

What recent performance metrics highlight Sky Protocol’s institutional traction?

Sky Protocol’s sUSDS supply reached $5.52 billion at the end of Q2 2026, increasing 149% over the prior year. The protocol has recorded five consecutive profitable quarters, including $107.35 million in gross revenue and a $33.29 million net surplus in Q2 2026. Its capital is supplied into institutional tokenized funds where it holds anchor positions in products such as BlackRock’s BUIDL and Janus Henderson’s JTRSY.