State Street and Galaxy Digital to Launch Tokenised Liquidity Fund
State Street Investment Management and Galaxy Asset Management have announced a partnership to launch a tokenised private liquidity fund that aims to bring 24/7 onchain liquidity to institutional investors.
The State Street Galaxy Onchain Liquidity Sweep Fund, known as SWEEP, is expected to debut on the Solana blockchain in early 2026. Ondo Finance is anticipated to seed the fund with roughly $200 million.
The fund will allow eligible Qualified Purchasers to subscribe and redeem using PYUSD stablecoins, subject to the availability of assets in the portfolio. Future integrations are planned across Stellar and Ethereum, with Galaxy intending to use Chainlink to support cross-chain interoperability.
State Street said SWEEP combines its decades of experience in cash and liquidity management with Galaxy’s blockchain infrastructure capabilities. State Street Bank and Trust Company will act as custodian for the treasury holdings, while Galaxy will provide the tokenisation technology and infrastructure powering the issuance and management of SWEEP tokens.
Kim Hochfeld, State Street’s global head of cash and digital assets, said the collaboration demonstrates how “TradFi and DeFi sector players unite” to influence the future of capital markets. Steve Kurz, Galaxy’s global head of asset management, called SWEEP a “game-changing collaboration”.
Ian De Bode, President of Ondo Finance, said tokenisation is becoming “the connective tissue between traditional finance and the onchain economy,” adding that the planned investment supports the evolution of institutional access to short-term U.S. Treasuries with instant mints and redemptions.
The partnership expands an existing relationship between State Street and Galaxy, which began with the launch of actively managed digital-assets ETFs in 2024.
