State Street and Galaxy Asset Management said they intend to launch a tokenized liquidity fund in early 2026, leveraging stablecoins to enable continuous investor flows and expanding the use of public blockchains in institutional cash-management products.
The fund, known as the State Street Galaxy Onchain Liquidity Sweep Fund, or SWEEP, will accept subscriptions and redemptions in Paxos-issued PYUSD, provided sufficient assets are available to meet demand. Access will be limited to Qualified Purchasers that satisfy specific eligibility requirements. Ondo Finance has committed approximately $200 million to seed the vehicle.
SWEEP is expected to launch on the Solana blockchain, with plans to extend issuance to Stellar and Ethereum. Galaxy said it will use Chainlink’s cross-chain technology to support the movement of data and assets across networks.
According to the firms, the fund is designed for institutional investors seeking to hold cash-like assets onchain while retaining the liquidity profile associated with traditional sweep accounts.
Kim Hochfeld, global head of cash and digital assets at State Street, said the initiative reflects a broader shift in how traditional financial institutions and crypto firms collaborate.
“By partnering with Galaxy, we’re pushing the boundaries together and helping drive the evolution of traditional finance onchain,” Hochfeld said.
Ondo Finance President Ian De Bode said the firm’s planned investment highlights the increasing convergence of traditional capital markets and blockchain-based finance.
“Tokenization is rapidly becoming the connective tissue between traditional finance and the onchain economy, and SWEEP represents a significant step forward in that transition,” he said.
The project builds on the firms’ existing partnership, which includes a range of digital-asset exchange-traded funds launched in 2024.
