Galaxy Adds $100M Of Sky’s sUSDS To Corporate Treasury
TL;DR Galaxy has added $100 million of Sky Protocol’s sUSDS to its own corporate treasury. The firm has also approved sUSDS as collateral across an institutional trading business carrying an average loan book of about $1.4 billion. Galaxy additionally bought an undisclosed amount of SKY, deepening an existing lending relationship with the Sky ecosystem. Galaxy is putting a meaningful chunk of its own balance sheet into onchain credit infrastructure. The digital-asset firm has added $100 million of Sky Protocol’s yield-bearing sUSDS to its corporate treasury and approved the token as eligible collateral across its institutional trading operation. This is more interesting than a simple token purchase. sUSDS Moves From DeFi Asset To Institutional Collateral Galaxy funded the $100 million position from its own balance sheet. The company has also opened sUSDS up for use as collateral by institutional clients taking loans through its trading business, which carries an average loan book of roughly $1.4 billion and serves more than 1,600 counterparties. That creates a different proposition from holding a normal dollar stablecoin. Clients pledging sUSDS can continue earning the Sky Savings Rate while the asset backs their borrowing. In traditional markets, that idea is ordinary. Treasury securities can earn yield while also serving as collateral. Moving that model onchain is one of the bigger tests for stablecoin-based finance. Galaxy also acquired an undisclosed amount of SKY, although neither side has published the size or purchase price of that position. The Relationship Already Goes Beyond This $100M Allocation Galaxy and Sky were not starting from zero. Grove, part of the wider Sky ecosystem, already provides Galaxy with a $500 million warehouse facility used to finance institutional loans backed by digital assets. Galaxy has also borrowed through Spark as part of its onchain financing strategy.
Key Takeaways
- TL;DR Galaxy has added $100 million of Sky Protocol’s sUSDS to its own corporate treasury.
- The firm has also approved sUSDS as collateral across an institutional trading business carrying an average loan book of about $1.4 billion.
- Galaxy additionally bought an undisclosed amount of SKY, deepening an existing lending relationship with the Sky ecosystem.
Summary generated by IndiCrypto from NewsBTC. IndiCrypto is a news aggregator and does not provide investment advice. Read the original article for full context.
More in Regulation
Visa Study Says Bank-Style Protections Could Push Stablecoin Use Sharply Higher
TL;DR Visa says U.S. willingness to use stablecoins rises from 36% to 56% when hypothetical bank-level fraud protection and deposit insurance are added. The study covered 2,192 U.S. adults and more than 45,000 respondents across 20 markets. The findings…
Tether's Offshore Bank Just Froze its Funds: Is There a Risk for USDT?
Tether's offshore banking partner just froze its funds after a US seizure, raising new questions about risk to USDT. The post Tether's Offshore Bank Just Froze its Funds: Is There a Risk for USDT? appeared first on BeInCrypto.
Blockchain.com And NYSE Plan 24/7 Tokenized Stock Access
TL;DR Blockchain.com and NYSE Group have signed an agreement to explore access to tokenized U.S.-listed stocks and ETFs. The proposed service would use NYSE’s planned digital trading venue and could support around-the-clock trading for eligible global users.…