State Street Investment Management, the asset management arm of State Street Corporation, and Galaxy Asset Management, an affiliate of Galaxy Digital, announced the forthcoming launch of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP) on December 10.
Popular tokenization platform Ondo Finance is expected to invest $200 million in seed funding into the tokenized private liquidity fund.
SWEEP will leverage State Street’s extensive experience in cash and liquidity management, combined with Galaxy Digital’s expertise in tokenization and digital infrastructure, to provide an onchain cash management solution for select investors.
The fund aims to unlock the potential for 24/7 onchain liquidity by utilizing PayPal USD (PYUSD) stablecoins for subscriptions and redemptions, as available from the fund's portfolio, according to the statement.
Galaxy intends to deploy Chainlink to support cross-chain interoperability, enabling SWEEP tokens to be transferable across different blockchain networks.
Qualified purchasers who meet the eligibility criteria and the minimum investment threshold will be able to access the fund.
Scheduled to launch on the Solana blockchain in early 2026, SWEEP is anticipated to integrate with other blockchain networks, including Stellar and Ethereum.
Industry Perspectives on Tokenization and the SWEEP Fund
Ondo Finance President Ian De Bode commented on the significance of tokenization, stating, “Tokenization is rapidly becoming the connective tissue between traditional finance and the onchain economy, and SWEEP represents a major leap forward in that evolution.”
“This collaboration with State Street and Galaxy shows how leaders in TradFi, DeFi and tokenization can come together to accelerate the transition to a more open, onchain financial system.”
Kim Hochfeld, global head of cash and digital assets for State Street Investment Management, expressed enthusiasm for the partnership, noting, “By partnering with Galaxy, we will push the envelope together and drive the evolution of the TradFi landscape onchain."
Steve Kurz, Galaxy's global head of asset management, highlighted the fund's innovative nature, saying, “SWEEP is a game-changing collaboration that will offer digital investors an onchain liquidity fund option, reimagining the way institutional DeFi investors hold cash and manage their operations.”
Related Developments in the Tokenization Space
- •Ondo and Chainlink have partnered to facilitate the integration of financial institutions onto the blockchain.
- •Ondo is now offering over 100 tokenized U.S. stocks and ETFs through Binance Wallet, reaching its user base of 280 million.
- •Ondo Finance has acquired Oasis Pro, a tokenized securities platform, to expand its presence and capabilities in the U.S. market.