#USA #New York #sUSDS #Sky Protocol #Galaxt Digital

Strategic Partnership Between Sky Protocol and Galaxy Digital

In a significant move that could reshape the landscape of digital finance, Sky Protocol, the leading onchain capital allocator, has joined forces with Galaxy Digital (Nasdaq: GLXY), a prominent name in the digital assets sector, to develop a strategic partnership focused on lending and capital markets. This collaboration is set to deepen Galaxy's usage of Sky Protocol's savings token, sUSDS, while expanding the credit availability to Galaxy's institutional platform, which currently serves over 1,600 trading counterparties.

Financial Backing and Innovations

Part of this partnership includes Galaxy incorporating $100 million of sUSDS into its corporate treasury and authorizing its use as collateral within its institutional trading framework. Galaxy's loan book, averaging $1.4 billion, will allow clients posting sUSDS against loans to continue benefiting from the favorable Sky Savings Rate.

As a noteworthy milestone, Galaxy becomes one of the pioneering public companies to include sUSDS on its balance sheet, thereby enhancing an already established onchain credit relationship with Sky Protocol. This relationship took root with Grove, a Prime Agent in Sky's ecosystem known for its institutional-grade credit infrastructure. Grove provides Galaxy with a $500 million warehouse lending facility, using USDS capital committed through specialized lending channels to support Galaxy's origination of institutional loans secured by digital assets.

The collaboration allows Galaxy to broaden its financing options through another Prime Agent, Spark, ultimately helping its clients benefit from a more efficient onchain yield. This partnership exemplifies how traditional finance is evolving alongside blockchain technology, creating favorable conditions for both institutions and individual investors.

Key Player Perspectives

Commenting on this innovative collaboration, Greg Feibus, Global Head of Capital Markets at Sky Frontier Foundation, stated, "Sky was built so the same savings rate can be made accessible 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. It serves as a strategic blueprint for integrating traditional financial systems with onchain capital, facilitated by a partner willing to prioritize its own capital."

Max Bareiss, Head of Lending at Galaxy, echoed this sentiment, highlighting the importance of the relationship in providing clients access to more efficient onchain yield. He noted, "Adding sUSDS to our treasury and as loan collateral, while also enhancing our GOFR financing, gives our clients a stronger foothold on the digital savings and credit landscape backed by a rate we confidently manage on our balance sheet."

Unleashing Institutional Potential

This partnership also addresses a critical hurdle that has long hindered institutional engagement in onchain yields. Many corporate treasuries and funds have approached decentralized savings solutions cautiously, hesitating without a regulated counterparty's endorsement. By linking up with a firm as established and credible as Galaxy, Sky is validating its protocol and asserting its commitment to fortifying reserves and security while gaining institutional trust.

Recent metrics reflect Sky Protocol's robust performance, with sUSDS supply hitting a substantial $5.52 billion milestone at the end of Q2 2026, marking a 149% increase year-over-year and consistently achieving profitability over the past five quarters. With $107.35 million in gross revenue and $33.29 million net surplus reported in Q2 2026, the partnership's effects are timely in a market trending towards tokenized savings and real-world asset collateralization.

The value of onchain real-world assets, excluding stablecoins, surpassed $33 billion as of July 2026—a fourfold increase from early 2025. By integrating these tokenized assets into mainstream finance, companies can now sustain a savings rate on their capital while utilizing it for loans and trades entirely onchain.

About Sky Protocol and Galaxy Digital

Sky Ecosystem serves as a global capital allocation protocol that governs the Sky Savings Rate, providing resilient yields backed by varied institutional-grade collateral. The independent Sky Agent Network competes to access USDS liquidity under set governance parameters, ensuring diverse yield strategies.

On the other hand, Galaxy Digital Inc., a leader in digital assets and data center infrastructure, aims to drive the economy reliant on code through its comprehensive offerings that facilitate institutional connection to digital assets, including trading, advisory, and asset management. With headquarters in New York City and a significant operational presence in North America and beyond, Galaxy is positioned amongst the largest data center developers.

This landmark partnership between Sky Protocol and Galaxy Digital not only reflects an advent of new opportunities and efficiencies in the financial sector but also marks an essential step towards bridging the gap between conventional finance and decentralized technology. As institutions increasingly embrace blockchain technology and onchain opportunities, the collaboration sets a precedent for future partnerships in this burgeoning market.