We are acquiring and building businesses within the stablecoin ecosystem, starting with a strategic stake in Sky, which entitles us to earnings from the protocol. We anticipate future businesses to incorporate a wider range of revenue-generating opportunities associated with stablecoins.
The strategy begins with SKY. The framework is designed to expand.
Structured Oversight
Market Opportunity
- $316B+ in stablecoins on-chain (as of March 2026)
- ~50% year-over-year market growth
- $10B+ earned by the largest stablecoin issuer alone in 2025
Why SDEV
- Public market access
- Focused stablecoin thesis
- Ability to hold, build, partner, and allocate capital
Future Expansion Areas
- Protocol-aligned markets / infrastructure
- Liquidity provisioning and market participation
- Strategic investments and partnerships across the stablecoin stack
The strategy begins with SKY. The framework is designed to expand.
The Model
What Is an On-Chain Holding Company?
Think of NovaBay the way you would a traditional holding company - except instead of owning equity stakes in operating businesses, we hold long-duration positions in the native tokens of high-conviction decentralized protocols.
HOW IT WORKS
Long-Duration Orientation
Not a trading operation. Assets are acquired for sustained participation.
Protocol-Level Participation
Staking · Governance · Validation · Network services.
Scalable Framework
SKY is the initial asset within a structure designed to support multiple protocol-aligned holdings.
“Accumulation, holding, and deployment of operating digital assets for use within blockchain-based networks to support protocol-level services, including staking, governance participation, validation, and related activities.”
SOURCE: NOVABAY 10-K
Why Sky Protocol
#3 Stablecoin Globally
Largest stablecoin that natively pays yield.
SOURCE: kscope.io
~ Sky Savings Rate
Funded by protocol revenue - not token inflation.
SOURCE: kscope.io
>$ Peg Stability Module Capacity
Institutional-scale liquidity.
SOURCE: kscope.io
Institutional Participation
Tether Investments participated in the Company’s foundational $134M strategic financing.
SOURCE: COMPANY SEC FILINGS
Structured Oversight
Board of Directors
+
Digital Asset Strategy Advisory Committee
NO SPECULATIVE TRADING
No short-term trading, margin, or derivatives without express authorization.
INSTITUTIONAL CUSTODY
Qualified U.S. custodians · Asset segregation · Independent audit reporting
LIQUIDITY DISCIPLINE
Operating capital maintained separately.
REGULATORY MONITORING
Continuous review of regulatory developments.
Institutional Alignment
JANUARY 2026 PIPE
~$134M Strategic Financing
SOURCE: COMPANY SEC FILINGS
Consideration Mix
$25M cash · $51M stablecoins · ~$58M SKY (open market)
Investors
Tether Investments · Sky Frontier Foundation · R01 Fund LP · Framework Ventures L.P.
Designed for Alignment
SDEV’s recent capitalization included participation from leading digital asset investors, aligning long-term capital with the company’s strategy.
Structured to support an orderly market and long-term alignment.
Total Addressable Market &
Additional Revenue Opportunities.
Market Context
Stablecoin & SKY
Growth Metrics
As of March 2026, the stablecoin market surpassed $316 billion in total supply, growing ~50% year-over-year. Transaction volume exceeded $11 trillion in 2025, with over $10 trillion in January 2026 alone - rivaling legacy settlement systems like Visa. Over 232 million wallets now hold stablecoins globally. The market is projected to reach $1 trillion by 2027.
Sky's USDS stablecoin is growing even faster. USDS supply grew 74% in 2025 to $9.2 billion, outpacing the overall market. USDS is the #3 stablecoin globally and the largest yield-generating stablecoin. Sky Frontier Foundation projects USDS will reach $20.6 billion by year-end 2026 - a 124% increase.
Sources: DeFi Llama Stablecoins (defillama.com/stablecoins); Macquarie via CoinDesk (March 10, 2026); RWA.xyz (232M holders); Standard Chartered via Arkham Intelligence (October 2025); Sky Frontier Foundation Q4 2025 / 2026 Outlook (January 2026)
Total Stablecoin Supply
$316B
~50% YoY growth
As of March 2026
As of March 2026
2025 TX Volume
$11T+
$10T in Jan 2026 alone
Global Wallets
232M
Holding stablecoins
Projected Market
$1T
By 2027
$9.2B — 74% Growth in 2025
USDS outpaced the overall stablecoin market and is the #3 stablecoin globally, and the largest yield-generating stablecoin.
$20.6B Projected USDS Supply
A 124% increase from 2025 year-end levels, according to Sky Frontier Foundation Q4 2025 / 2026 Outlook.
Stablecoin & SKY Growth Metrcis
The stablecoin market has surpassed $316 billion in total supply, growing ~50% year-over-year. Transaction volume exceeded $11 trillion in 2025, with over $10 trillion in January 2026 alone - rivaling legacy settlement systems like Visa. Over 232 million wallets now hold stablecoins globally. The market is projected to reach $1 trillion by 2027.
Sky’s USDS stablecoin is growing even faster. USDS supply grew 74% in 2025 to $9.2 billion, outpacing the overall market. USDS is the #3 stablecoin globally and the largest yield-generating stablecoin. Sky Frontier Foundation projects USDS will reach $20.6 billion by year-end 2026 - a 124% increase.
Sources: DeFi Llama Stablecoins (defillama.com/stablecoins); Macquarie via CoinDesk (March 10, 2026); RWA.xyz (232M holders); Standard Chartered via Arkham Intelligence (October 2025); Sky Frontier Foundation Q4 2025 / 2026 Outlook (January 2026)
DAILY FEE
Total protocol fees generated daily
Protocol Fees 30D
Total fees generated by Sky Protocol over the last 30 days
ANNUALIZED FEE RUN-RATE
Based on current daily protocol fee generation × 365
FY 2025 GROSS REVENUE
$338.0MFull-year realised protocol revenue
Source: kscope.io
Revenue Landscape
Stablecoin Profitability
& SKY Penetration Rate
Stablecoin issuers generate robust profits. Tether reported over $10 billion in net profit in 2025. Circle generated $658 million in a single quarter on ~$61 billion in USDC reserves. Combined, the top stablecoin issuers earn well over $15 billion per year, primarily from interest on reserve assets backing their tokens.
Sky Protocol generated $338 million in gross protocol revenue in 2025, representing roughly 2 to 3% of total stablecoin issuer revenue. Unlike centralized issuers who earn from treasury interest, Sky earns from borrowing demand and on-chain fees, a differentiated, decentralized model. With revenue projected to grow 81% to $611.5 million in 2026, Sky's share of the stablecoin profit pool is expanding.
Sources: Bloomberg (Tether FY2025, January 30, 2026); The Block (Tether attestation, January 30, 2026); Axios (Circle Q2 2025, August 12, 2025); Sky Frontier Foundation Q4/2026 Outlook (January 2026)
Sky Protocol
2-3%
Share of total stablecoin issuer revenue, 2025
Unlike centralized issuers who earn from treasury interest, Sky earns from borrowing demand and on-chain fees, a differentiated, decentralized model.
2025 Gross Revenue
$338M
2026 Projected Revenue
↑81% $611.5M
Market Share Trend
Strategic Initiatives
Additional Revenue-Generating Opportunities
Beyond our core Sky governance position, SDEV is exploring additional revenue-generating opportunities within the stablecoin ecosystem:
01
HIP-3 Markets
Participation in HIP-3 designated markets within the Sky Protocol ecosystem.
Active Exploration
02
Running a Sky Prime
Operating a Sky Prime instance to generate protocol-level revenue.
Active Exploration
03
LP Deployment
Liquidity deployment into qualifying digital asset markets.
Active Exploration