Galaxy adds $100M Sky token and institutional adoption is tested

Galaxy Digital has added $100 million of sUSDS, Sky Protocol's yield-bearing savings token, to its corporate treasury and approved it as collateral for institutional clients, the companies said Sept. 23.Galaxy and Sky described the treasury position as complete, but their announcement gave no figure for client lending secured by sUSDS or the first completed loan. The decision makes the token eligible across Galaxy's institutional trading business, with actual client uptake still undisclosed.Galaxy reported holding $100 million in sUSDS and separately made the token eligible as collateral for institutional client loans.The attraction is a token that continues to accrue a savings return when pledged. Under the announced arrangement, clients who post sUSDS against a loan keep accruing the Sky Savings Rate on the full position while the loan runs.Sky says governance sets that rate and funds it from aggregate protocol surplus, and that holders keep the same number of sUSDS tokens as the amount of USDS redeemable for each token increases as it accrues. The savings rate can change, so future accrual is not fixed.For a borrower, that design could offer access to credit while retaining a sa...