- State Street Investment Management, Galaxy Asset Management, and Ondo Finance collaborate on the SWEEP tokenized liquidity fund to channel cash sweep balances onto blockchains.
- The fund will initially use Paypal’s (PYUSD) stablecoin and target accredited investors, with a $200 million seed investment from Ondo.
- SWEEP will launch on the Solana blockchain in early 2026, later expanding to Stellar and Ethereum with ChainLink’s Cross-Chain Interoperability Protocol.
- This initiative intensifies competition among institutional players to define “onchain cash” and build integrated tokenized capital markets.
- Solana plays a key role as a leading platform for tokenized assets, favored for fast transactions and low fees by major institutions.
State Street Investment Management, Galaxy Asset Management, and Ondo Finance are partnering to launch the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP). The fund aims to move cash “sweep” balances directly onto public blockchains, creating 24/7 onchain liquidity for accredited investors using PayPal’s stablecoin (PYUSD), according to the companies.
Ondo Finance plans to seed SWEEP with $200 million, connecting a significant tokenized real-world asset issuer directly to State Street’s tokenization platform. The fund’s infrastructure will be powered by Galaxy Digital, and State Street Bank and Trust Company will serve as custodian. SWEEP is scheduled to launch on the Solana blockchain in early 2026, with subsequent expansions planned for the Stellar and Ethereum networks using Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
This collaboration highlights the intensifying race among institutions to define “onchain cash” solutions. Major firms including BlackRock and Franklin Templeton already manage tokenized cash and short-term fixed-income funds on blockchains. Ondo Finance specializes in wrapping U.S. Treasurys and credit assets into onchain vehicles available in crypto markets. Kim Hochfeld, global head of cash and digital assets at State Street Investment Management, noted they aim to drive TradFi’s evolution through this partnership, while Ondo’s president Ian De Bode emphasized tokenization as a crucial bridge between traditional finance and the onchain economy.
The SWEEP fund’s launch marks the progression of tokenized funds and equities into components of an emerging onchain capital markets stack. New initiatives like Superstate enable public companies to raise capital onblockchains such as Ethereum and Solana by issuing equity for stablecoins with immediate settlement. Within this landscape, State Street offers regulatory oversight and custody, Galaxy provides digital-asset infrastructure, and Ondo injects capital alongside its real-world asset distribution network.
Solana, chosen as the initial platform for SWEEP, is favored for high throughput and low transaction costs, supporting tokenized assets and onchain liquidity products. Leading institutions like Western Union and Pfizer utilize Solana for their digital asset activities, with nearly $1 billion in physical staked ETFs under management on the network. Expanding SWEEP to Stellar and Ethereum will integrate multiple blockchain ecosystems where stablecoins and tokenized assets coexist.
For further details, the partnership was announced publicly by the companies involved.
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