Sky pivots beyond treasuries as yields dip, staking overhaul looms

**Sky Protocol Shifts $100M from Treasuries to Crypto Carry Strategy as Bond Yields Decline**

Sky Protocol is making a significant pivot in its treasury management strategy, moving $100 million from traditional government bonds into Superstate's innovative crypto carry fund as 10-year Treasury yields drop below the critical 4% threshold. This strategic cryptocurrency allocation reflects growing institutional confidence in decentralized finance (DeFi) yield generation strategies.

The blockchain-based protocol's decision comes amid a broader market shift where traditional fixed-income returns are becoming less attractive, prompting institutional investors to explore alternative cryptocurrency investments. Spark, Sky's execution arm, is spearheading this transition into digital asset yield farming as the protocol prepares for upcoming staking mechanism overhauls.

This $100 million cryptocurrency investment signals a major trend in institutional DeFi adoption, as protocols seek higher-yielding alternatives to traditional Treasury securities. The move highlights how falling bond yields are accelerating institutional crypto adoption and blockchain-based investment strategies.

Market analysts view this treasury reallocation as indicative of cryptocurrency's maturing role in institutional portfolio management, potentially influencing Bitcoin and broader digital asset market sentiment as more protocols diversify beyond traditional financial instruments.