Why Are the Awoken Blue

The Awoken are a bluish-gray-skinned player species in Destiny. They are descendants of Humans who were aboard the Exodus Green right before the Collapse. The Darkness made something mysterious and strange happened to them at the edge of Human-controlled space, which altered them forever.

Are the Awoken humans?

The Awoken are a humanoid race sharing common ancestry with Earth humans. They descend from the crew and passengers of the Yang Liwei, a colony ship that disappeared in a spacetime anomaly during the Collapse.

Can Awoken and humans have kids?

Yes, as they are post part of the same species. For two entities to be in the same species, the must be able to procreate and have living children without mutations. Also, awoken were human, their genetic structure would have to be very very similar to humans.