A balloon catheter and balloon system particularly useful with drug-coated balloons is described. In some embodiments, the balloon catheter system includes various features designed to address problems with drug rubbing off due to contract friction during delivery of the balloon—including by utilizing a protective sleeve to shield the drug-coated balloon. In some embodiments, the balloon catheter system includes an inner high-pressure balloon and an outer drug-coated balloon to mitigate the time associated with performing vessel dilation.