State Street and Galaxy Asset Management plan to introduce a tokenized liquidity fund in early 2026, using stablecoins to enable continuous investor subscriptions and redemptions and further embedding public blockchains into institutional cash-management workflows.
The vehicle, known as the State Street Galaxy Onchain Liquidity Sweep Fund, or SWEEP, will accept inflows and outflows in Paxos-issued PYUSD, subject to available assets. Participation will be limited to Qualified Purchasers that meet defined eligibility criteria. Ondo Finance has committed roughly $200 million to seed the fund.
At launch, SWEEP is expected to be issued on the Solana blockchain, with plans to expand to Stellar and Ethereum over time. Galaxy said it will rely on Chainlink’s cross-chain infrastructure to coordinate data and asset transfers across networks.
The firms said the fund is designed to give institutions onchain access to cash-equivalent assets without compromising the liquidity standards typically associated with traditional sweep products.
Kim Hochfeld, global head of cash and digital assets at State Street, said the initiative reflects a shift in how established financial institutions and crypto-native firms collaborate.
“Partnering with Galaxy allows us to move traditional cash-management tools onchain while maintaining institutional-grade standards,” Hochfeld said.
Ondo Finance President Ian De Bode said the planned investment underscores the accelerating convergence between traditional finance and the onchain economy.
“Tokenization is fast becoming the connective layer between capital markets and blockchain-based finance, and SWEEP represents a significant step forward in that process,” he said.
The launch builds on the firms’ existing partnership, which includes a suite of digital-asset exchange-traded funds rolled out in 2024.
