State Street and Galaxy Asset Management plan to launch a tokenized liquidity fund in early 2026 that uses stablecoins for investor flows around the clock, expanding the use of public blockchains in institutional cash management, the companies announced Wednesday.
The State Street Galaxy Onchain Liquidity Sweep Fund, or SWEEP, will accept subscriptions and redemptions in PYUSD, a stablecoin issued by PayPal, provided the fund has assets to process requests. Only qualified buyers who meet defined thresholds can access the fund. Ondo Finance has committed around $200 million to launch the product.
Companies plan to issue SWEEP on Solana at launch, then add Stellar (XLM) and Ethereum (ETH.) Galaxy plans to build on Chainlink tools to move data and assets across chains.
The companies said the fund is designed for institutions that want to hold cash-like assets online without giving up the liquidity profile they expect from traditional sweepstakes products.
Kim Hochfeld, global head of liquidity and digital assets at State Street, said the project reflects a shift in how banks and crypto companies work together.
“By partnering with Galaxy, we will push the boundaries together and drive the evolution of the on-chain TradFi landscape,” she said.
Ondo Finance Chairman Ian De Bode said the company’s planned investment shows how traditional and crypto markets continue to converge.
“Tokenization is quickly becoming the connective tissue between traditional finance and the blockchain economy, and SWEEP represents a major step forward in this evolution,” he said.
This effort adds to the companies’ joint work, which includes a set of digital asset ETFs launching in 2024.
