State Street And Galaxy Reveal New On-Chain Liquidity Sweep Fund
- SWEEP moves PYUSD on public chains and gives large investors nonstop on-chain liquidity.
- Ondo seeds the SWEEP fund with two hundred million and widens access to tokenized cash.
- Solana hosts SWEEP first and gives institutions faster settlement and on-chain liquidity.
State Street Investment Management and Galaxy Asset Management confirmed a joint effort with Ondo Finance to launch a tokenized liquidity fund that moves cash sweep balances directly onto public blockchains. The State Street Galaxy Onchain Liquidity Sweep Fund, known as SWEEP, will accept and distribute PayPal’s stablecoin PYUSD for accredited investors. Ondo will seed the fund with $200 million, while Galaxy provides digital asset infrastructure, and State Street Bank and Trust Company manages custody.
A New Push Toward Institutional On-Chain Cash
SWEEP will launch on Solana in early 2026 and expand to networks like Stellar and Ethereum through Chainlink’s CCIP. The initiative enters a growing race to define institutional on-chain cash as firms deploy tokenized strategies. BlackRock and Franklin Templeton already operate tokenized cash-management vehicles on public networks. Ondo continues to wrap Treasuries and credit exposures into on-chain instruments that integrate with crypto markets.
State Street’s Kim Hochfeld said the partnership aims to advance digital asset products across blockchain rails. Hochfeld stated that collaboration between traditional finance and DeFi players shows growing potential for shared market structures. Galaxy’s Steve Kurz described SWEEP as a new liquidity option for digital investors seeking around-the-clock cash management tools.
Superstate also moved this week to expand tokenized capital markets by enabling direct stock issuance for public companies on Ethereum and Solana. The program allows issuers to raise capital in stablecoins and settle transactions directly to investor wallets. This shift raises an important question: how rapidly will institutional workflows migrate to public blockchains?
A Product Built Through Shared Infrastructure
The partnership assigns clear roles across firms. State Street offers regulated custodial services. Galaxy delivers tokenization systems for fund operations. Ondo contributes capital and a distribution network already built around tokenized real-world assets.
Ian De Bode of Ondo Finance said tokenization now acts as a link between traditional finance and blockchain markets. He noted that the planned investment strengthens Ondo’s existing Treasury-based fund, which uses instant issuance and redemption throughout the day. He also said coordination between State Street, Galaxy, and Ondo accelerates the development of an open on-chain financial system.
State Street and Galaxy expect SWEEP to form part of an emerging on-chain capital markets stack. This stack now includes tokenized funds, tokenized equities, and instant settlement rails supported by public networks.
Related: Galaxy Digital Eyes Liquidity Role in Prediction Markets
Solana’s Expanding Institutional Position
The decision to launch on Solana reflects demand for low-cost transactions and high throughput. Solana has become a preferred home for experiments in tokenized assets and rapid settlement pathways. Issuers now use the chain for public share tokenization and liquidity fund trials.
Major institutions already operate on Solana. Western Union handles over $100 billion in annual remittances. Pfizer supports $2 trillion in yearly merchant payments. Physically staked ETFs on Solana reached nearly $1 billion in assets under management. These deployments show the chain’s growing role in institutional blockchain activity.
State Street, Galaxy, and Ondo expect SWEEP to add another component to that ecosystem as institutional demand for 24/7 liquidity expands across global markets.
