State Street and Galaxy Asset Management are taking tokenized finance to a new level with the announcement of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), set to launch on Solana in early 2026. The initiative represents a major leap for institutional blockchain adoption, marking the first time a global systemically important bank issues a product directly on Solana. Backed by Ondo Finance’s $200 million commitment, SWEEP aims to deliver an institutional-grade, fully onchain cash-management solution powered by PYUSD.
SWEEP Becomes the First Solana-Based Offering From a Global Bank
SWEEP will issue its initial tokens on Solana, chosen for its fast settlement times, low fees, and strong ecosystem for institutional-grade tokenization. The companies noted that this marks the first Solana-issued product from a top-tier global bank — a milestone that underscores how quickly the blockchain is becoming a preferred platform for real-world assets (RWAs).
While Solana will serve as the launch network, State Street and Galaxy confirmed that future expansions will support Stellar and Ethereum, with Chainlink infrastructure enabling secure cross-chain data and asset transfers.
24/7 Investor Flows Powered by PYUSD
Unlike traditional financial products limited by banking hours, SWEEP will operate around the clock, offering continuous subscription and redemption flows using PayPal’s PYUSD. This design provides institutions with a cash-like onchain product that preserves the liquidity and accessibility of traditional sweep accounts, but with blockchain-native transparency and automation.
Only Qualified Purchasers who meet regulatory standards will be eligible to invest in SWEEP. State Street Bank and Trust Company will serve as the custodian for the fund’s underlying treasury assets, preserving the compliance and security institutions expect.
A New Era of Onchain Cash Management for Institutions
SWEEP is tailored specifically for institutions seeking to manage liquidity onchain without sacrificing the stability of traditional cash instruments. Kim Hochfeld, State Street’s global head of cash and digital assets, said the collaboration signals a major shift in how banks and crypto-native firms work together, allowing them to jointly push forward the evolution of onchain financial infrastructure.
Galaxy’s global head of asset management, Steve Kurz, emphasized that the product is designed to give digital-first investors a new operational liquidity tool, supported by Galaxy’s digital infrastructure for issuance and lifecycle management.
Ondo Strengthens Tokenization Momentum With $200M Investment
Ondo Finance President Ian De Bode highlighted that the firm’s $200 million seed commitment reinforces the accelerating convergence between traditional finance and blockchain-based markets. Tokenized funds like SWEEP, he noted, offer more efficient operating models and unlock new liquidity pathways for institutions.
State Street, Galaxy, and Ondo already share a history of collaboration, including partnerships around digital asset ETFs launched in 2024. SWEEP continues that trajectory while signaling growing confidence in tokenization as a core pillar of institutional finance.
A Transformative Step for Institutional Onchain Products
With SWEEP, State Street and Galaxy are positioning themselves at the forefront of tokenized asset innovation. By combining institutional-grade custody, blockchain-native liquidity, and a public network like Solana, the fund demonstrates how traditional finance and crypto infrastructure can now operate side by side — and in many cases, enhance one another.
As 2026 approaches, SWEEP could become one of the most influential institutional tokenization launches yet, paving the way for more real-world assets to move onchain.