State Street and Galaxy Asset Management announced on Wednesday plans to launch a tokenized liquidity fund in early 2026, using stablecoins for around-the-clock investor mobility and expanding the use of public blockchains in institutional cash management.
The State Street Galaxy On-Chain Liquidity Revolving Fund (SWEEP) will accept subscriptions and redemptions of PYUSD, the stablecoin issued by PayPal, as long as the fund has the assets on hand to process the request. Only qualified buyers who meet a set threshold will have access to the fund. Ondo Finance has committed approximately $200 million to seed the product.
These companies are expected to issue SWEEP on Solana At launch, Stellar (XLM) and Ethereum (ETH) will then be added. Galaxy plans to rely on Chainlink Tools for moving data and assets across chains.
The companies said the fund is designed for institutions that want to hold cash-like assets on-chain without giving up the liquidity expected from traditional sweep products.
Kim Hochfeld, global head of cash and digital assets at State Street, said the project reflects a shift in the way banks and cryptocurrency companies work together.
“By partnering with Galaxy, we will jointly challenge the limits and promote the development of the on-chain TradFi landscape,” she said.
Ian De Bode, president of Ondo Finance, said the company’s planned investment shows how traditional and crypto markets continue to converge.
“Tokenization is quickly becoming the connecting tissue between traditional finance and the on-chain economy, and SWEEP represents a major leap in this evolution,” he said.
The effort enhances the two companies’ collaboration, which includes the launch of a series of digital asset ETFs in 2024.