A listed balance sheet converted to DeFi. Galaxy Digital, Mike Novogratz's company listed on the Nasdaq, has placed $100 million of its own treasury into sUSDS. This token is the yield-bearing version of the USDS stablecoin issued by Sky. The protocol was still known as MakerDAO until 2024.

The announcement on September 23, 2026, goes beyond a simple investment. Galaxy now accepts sUSDS as collateral for its institutional loans.

Key takeaways from this article:

  • Galaxy Digital invests $100 million of its treasury into Sky's savings token, a DeFi bet that remains rare for a listed company.
  • At Galaxy, a loan can now be backed by sUSDS, which continues to earn yield for as long as the loan is active.

sUSDS: Sky's yield-bearing stablecoin

A quick refresher on the mechanics. USDS is a digital dollar issued by the Sky protocol. When deposited into the protocol's savings module, it becomes sUSDS and earns the Sky Savings Rate, a rate set by governance and funded by Sky's revenues. You hold a dollar-pegged token that grows automatically over time.

The product has found its audience. According to the joint press release, the supply of sUSDS reached $5.52 billion by the end of June 2026, up 149% year-on-year. Sky reported $107.35 million in gross revenue for the second quarter and a net surplus of $33.29 million.

Galaxy Digital turns sUSDS into loan collateral

Galaxy financed the purchase on its balance sheet and is among the first listed companies to hold this savings token. The major shift is happening on the credit side. Institutional clients of Galaxy can now deposit sUSDS as collateral for a loan and continue to collect the savings rate on their full deposit throughout the duration of the borrowing period.

Traditional collateral typically yields nothing while a loan is active. Galaxy is accepting this token across its entire institutional trading business, where the loan book averages $1.4 billion. "We are passing this savings rate through to our own balance sheet," summarizes Max Bareiss, Head of Lending at Galaxy.

Galaxy and Sky: A well-oiled credit relationship

The partnership did not come out of nowhere. Grove, one of the entities in the Sky ecosystem responsible for deploying its capital, already provides Galaxy with a $500 million line of financing. This USDS liquidity reserve is used to fund the loans Galaxy grants against digital assets. Galaxy also borrows from Spark (another ecosystem entity) to power its Galaxy One Fund of Receivables.

Galaxy has also purchased an undisclosed amount of SKY, the protocol's governance token. The market reacted positively to the move. According to FXStreet, SKY rallied by more than 10% in the aftermath before returning to around $0.072. Over seven days, it is up 27%.

Keep an eye on the risks. sUSDS remains a DeFi product, exposed to Sky's governance decisions and the quality of the assets backing USDS. Its yield also fluctuates based on protocol votes.

This move extends beyond the Galaxy case. Yield-bearing stablecoins have been gaining ground since late 2024, and JPMorgan previously anticipated they could quickly dominate the market.

Magali

After falling down the rabbit hole in 2017, I went from an avid reader to Editor-in-Chief of Journal du Coin. I love getting involved behind the scenes of projects to share my vision of a decentralized future. A lover of fine writing, I coordinate our teams to transform technical complexity into human, precise information without unnecessary jargon. Between entrepreneurship and writing, my mission is clear: to explain tomorrow, but to do it today.

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