Sky’s September Financial & Operational Update, published Oct. 23, showed gross protocol revenue of $30.8 million, a 49.7% increase from a year earlier, while net protocol revenue reached $12.32 million compared with a $5.41 million loss in September 2025. Total stablecoin supply stood at $9.70 billion and protocol collateral at $11.41 billion as of Sep. 30, representing year-over-year growth of 27.6% and 25.3%, respectively.
After expenses and revenue allocations, the protocol remitted $7.15 million to Sky Reserves, compared with a negative $17.26 million a year earlier. Sky Reserves ended September at $85.08 million against a $150 million Solvency Reserve target, equal to 56.7% of the goal. The update also noted that September was the first full month under the Stage 2 capital allocation framework, with $5.08 million allocated to SKY buybacks and USDS payments to SKY stakers, more than double August’s $2.48 million.
Galaxy’s previously announced $100 million sUSDS treasury allocation was included in the update. The agreement approves sUSDS as institutional loan collateral and includes a separate SKY purchase of undisclosed size. Sky described Galaxy as a Nasdaq-listed New York-based institutional business with more than 1,600 trading counterparties and an average loan book of about $1.4 billion.
The Foundation also confirmed the first Stage 2 burn, dated Sep. 13, permanently removed 2.86 million SKY from circulation. The purchase was funded by the framework’s 5% allocation of monthly Net Protocol Surplus, though the dollar cost and average execution price were not disclosed.
In institutional lending, the Grove and Galaxy $500 million warehouse facility had financed $375 million in senior secured, overcollateralized loans since its July 15 launch, reaching 75% utilization. The latest loan was $71 million. Borrowers post Bitcoin or Ethereum collateral, with custody supplied by Anchorage Digital and BitGo.
Elsewhere in the ecosystem, Spark’s Stablecoin FX Layer has processed more than $12 billion in cumulative volume since June 25, using USDS as a common liquidity base for PYUSD, USDT, RLUSD and USDC. Spark’s active loans reached $2.9 billion, roughly 190% growth over 180 days, while USDS borrowing on SparkLend passed $800 million after growing 64% over 30 days.
