State Street Investment Management and Galaxy Asset Management, an affiliate of Galaxy Digital Inc., have unveiled plans to launch the State Street Galaxy Onchain Liquidity Sweep Fund, or SWEEP—a tokenized private liquidity fund designed to bring true 24/7 liquidity into the world of digital finance. By using PYUSD stablecoins for subscriptions and redemptions, the fund aims to give eligible investors a faster, more transparent way to move capital onchain, with Ondo Finance expected to seed the fund with roughly $200 million.
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The fund is set to debut in early 2026 on the Solana blockchain, selected for its high performance and low cost. Integrations with Stellar and Ethereum are already planned, and Galaxy intends to use Chainlink to help power seamless cross-chain interoperability. This foundation reflects a shared goal between State Street and Galaxy: uniting traditional finance with next-generation blockchain infrastructure.
SWEEP blends State Street’s decades of expertise in liquidity and cash management with Galaxy’s advanced digital infrastructure. State Street Bank and Trust Company will act as custodian for the fund’s treasury holdings, while Galaxy provides the tokenization technology and secure systems required to issue and manage SWEEP tokens. Together, the partners aim to offer qualified investors a modern, onchain solution that mirrors the reliability of traditional money market products while unlocking the benefits of blockchain rails.
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Kim Hochfeld, global head of cash and digital assets at State Street Investment Management, said the partnership represents a meaningful step forward for the industry. She emphasized that merging TradFi and DeFi capabilities can reshape the future of asset management and create new efficiencies in capital markets. Galaxy’s global head of asset management, Steve Kurz, echoed this sentiment, calling SWEEP a “game-changing collaboration” that reimagines how institutional DeFi investors manage liquidity.
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Ondo Finance President Ian De Bode added that tokenization is increasingly becoming the bridge between old and new financial systems. He noted that SWEEP not only advances onchain liquidity but also aligns with Ondo’s long-term commitment to making short-term U.S. Treasuries available to institutions with instant minting and redemption through blockchain-based models.
This initiative marks a deepening of the relationship between State Street and Galaxy. The firms have already collaborated on several digital-asset-focused ETFs launched in 2024, and SWEEP represents their most ambitious joint project yet—one that signals a broader shift toward institutional adoption of blockchain-powered financial products.
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