Sky has reported $30.8 million in September gross revenue and its first 2.86 million SKY token burn, alongside Galaxy’s $100 million sUSDS treasury allocation.
Summary
- Sky’s September gross revenue reached $30.8 million, up 49.7% from a year earlier.
- Galaxy allocated $100 million to sUSDS and approved the token as institutional loan collateral.
- Sky completed its first Stage 2 burn, permanently removing 2.86 million SKY from circulation.
- Grove and Galaxy’s $500 million credit facility reached 75% utilization, financing $375 million in loans.
Sky Frontier Foundation’s September financial and operational update put total stablecoin supply at $9.70 billion and protocol collateral at $11.41 billion as of Sep. 30. Published on Oct. 23, the briefing brought together monthly financial results, institutional lending activity and the first completed burn under its Stage 2 capital allocation framework.
Sky revenue rises as reserve contributions turn positive
Gross protocol revenue grew 49.7% from September 2025, while total stablecoin supply rose 27.6% and collateral grew 25.3%, the Foundation reported.
Net protocol revenue reached $12.32 million, compared with a $5.41 million loss a year earlier. The report cautioned that expense classifications affected that comparison. September 2025 included $14.40 million in legacy operating expenses that are now largely inactive.
The figures therefore combine revenue growth with changes in the expense base. The Foundation did not present the full improvement in net revenue as growth from continuing operations on an unchanged accounting basis.
After expenses and revenue allocations, the protocol remitted $7.15 million to Sky Reserves. A year earlier, the corresponding figure was negative $17.26 million.
September was the first full month of Stage 2, and the revenue allocation covering SKY buybacks and USDS payments to SKY stakers reached $5.08 million. August’s allocation was $2.48 million, making September’s total slightly more than twice the preceding month’s figure.
Sky Reserves ended September at $85.08 million against a $150 million Solvency Reserve target, according to the update. Calculated from those figures, reserves stood at 56.7% of the target, leaving $64.92 million still to accumulate.
The Foundation’s August update placed reserves at $76.99 million. September’s closing balance was therefore $8.09 million higher, or approximately 10.5%. That balance change differs from the reported $7.15 million monthly remittance; the September text does not provide a reconciliation between the two measures.
Galaxy’s $100 million sUSDS position builds on an earlier agreement
Galaxy’s treasury allocation was first announced on Sep. 23, before its inclusion in the monthly update. The agreement covered a $100 million sUSDS position, approval of the token as institutional loan collateral and a separate SKY purchase whose size was not disclosed.
As crypto.news previously reported, the sUSDS treasury allocation lets Galaxy clients pledge the savings token while continuing to accrue the Sky Savings Rate on their full collateral position for the loan’s duration.
The Foundation’s announcement identified Galaxy as a Nasdaq-listed company headquartered in New York. It described an institutional business serving more than 1,600 trading counterparties and carrying an average loan book of $1.4 billion.
Galaxy’s own website separately lists a $1.4 billion average loan book for the second quarter of 2026. Its current counterparty figure exceeds 1,700, although that figure comes from a different disclosure context than the September partnership announcement.
Sky’s savings token had already appeared in other distribution channels. Mantle’s August stablecoin vault launch offered exposure to sUSDS yield through a strategy built with CIAN, Grove and Fluxion. The underlying savings rate is set through governance and can change.
First SKY burn removes 2.86 million tokens
The Foundation dated the first Stage 2 burn to Sep. 13, when 2.86 million SKY bought on the open market were permanently removed from circulation.
The purchases used the framework’s allocation of 5% of monthly Net Protocol Surplus. The September update did not disclose the dollar purchase cost or average execution price for the burned tokens.
The framework assigns another 22.5% of surplus to SKY purchases for staking rewards and 22.5% to USDS staking rewards. Up to 50% goes to the Surplus Buffer.
Only the dedicated 5% allocation funds permanent token removal. SKY acquired for staking rewards follows a separate distribution route, so the framework’s total buyback allocation should not be described as a burn allocation.
The Foundation’s preceding monthly report said governance ratified Stage 2 on Aug. 13. September’s burn followed that activation, while the latest financial results cover the framework’s first complete calendar month.
Grove facility finances $375 million in institutional loans
Grove and Galaxy’s $500 million warehouse facility had financed $375 million in senior secured, overcollateralized institutional loans since its July 15 launch, according to the September update. The Foundation described the facility as 75% utilized and identified the latest loan of $71 million.
The accompanying case study explains that Grove commits USDS through a dedicated lending vehicle, while Galaxy underwrites, originates and services the loans. Borrowers provide Bitcoin or Ethereum collateral, with Anchorage Digital and BitGo supplying custody.
Elsewhere in the ecosystem, the Foundation reported that Spark’s Stablecoin FX Layer had processed more than $12 billion in cumulative volume since June 25. The system uses USDS as a common liquidity base connecting PYUSD, USDT, RLUSD and USDC.
Spark’s active loans reached $2.9 billion, representing approximately 190% growth over 180 days, the update said, citing Token Terminal. Separately, USDS borrowing on SparkLend passed $800 million after growing 64% over 30 days.
The Foundation said its third-quarter report and recorded insights call would follow later in October. Participants could submit questions ahead of the call, with submissions closing Oct. 28.
