Galaxy Digital, the Nasdaq-listed digital asset firm led by Mike Novogratz, has placed $100 million of its treasury into sUSDS, the yield-bearing version of the USDS stablecoin issued by Sky, the protocol formerly known as MakerDAO until 2024. The move, announced on September 23, 2026, was financed entirely from Galaxy's own balance sheet, and the company says it is among the first publicly listed firms to hold the token.
sUSDS holders earn the Sky Savings Rate when the token is deposited into Sky's savings module. Galaxy has now gone a step further by accepting sUSDS as collateral for institutional loans, allowing clients who post it to keep earning the savings rate on their full deposit for the duration of the loan.
"We're putting that savings rate to work on our own balance sheet," said Max Bareiss, head of lending at Galaxy, describing the rationale behind the allocation.
A deepening relationship with the Sky ecosystem
The sUSDS purchase is only the latest link between Galaxy and Sky's broader network of entities. Grove, part of the Sky ecosystem, provides Galaxy with a $500 million financing line, a USDS liquidity reserve used to fund Galaxy's loans against digital assets. Galaxy also borrows from Spark, another Sky-affiliated entity, to fund its Galaxy One Fund of Receivables. On top of the sUSDS allocation, Galaxy purchased an undisclosed amount of the SKY governance token.
Galaxy's institutional trading loan book averages $1.4 billion, giving the collateral update practical weight for the clients it serves rather than being a purely symbolic gesture.
Sky's growing balance sheet
The allocation comes as sUSDS supply has expanded sharply. It stood at $5.52 billion at the end of June 2026, up 149% year-over-year. Sky itself reported gross revenue of $107.35 million and a net surplus of $33.29 million for the second quarter of 2026.
The SKY token reacted to the news by rising more than 10% before settling back to about $0.072, with a 27% gain over seven days.
Risk and context
sUSDS remains exposed to Sky's governance decisions and to the quality of the assets backing USDS, a risk that applies to any yield-bearing stablecoin tied to a decentralised protocol's treasury choices. Yield-bearing stablecoins have been gaining traction since late 2024, a trend JPMorgan had previously flagged, anticipating that such instruments could come to dominate the stablecoin market quickly.
For European observers tracking how institutional players approach stablecoin regulation, Galaxy's move illustrates how a listed firm is treating a yield-bearing token not just as a treasury asset but as usable collateral within its lending operations, a distinction likely to feature in ongoing discussions around stablecoin oversight frameworks such as MiCA.
