State Street Investment Management and Galaxy Asset Management, an affiliate of Galaxy Digital Inc, today announced the forthcoming launch of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized private liquidity fund that will unlock the potential for 24/7 onchain liquidity by utilizing PYUSD stablecoins for subscriptions and redemptions, subject to availability from the fund’s portfolio.

SWEEP will be available to Qualified Purchasers that meet certain eligibility criteria and minimum investment amounts. Ondo Finance is anticipated to seed the fund with approximately $200 million.

The fund is anticipated to debut on the Solana blockchain in early 2026, with additional blockchain integrations planned for the future, including on Stellar and Ethereum. Galaxy intends to leverage Chainlink to help facilitate cross-chain interoperability.

SWEEP will combine State Street’s decades-long expertise in traditional cash and liquidity management with Galaxy’s deep capabilities in blockchain infrastructure, representing a new option for eligible investors seeking a liquid, onchain cash management solution. State Street Bank and Trust Company, an affiliate of State Street Investment Management, will serve as custodian for the fund’s treasury holdings.

SWEEP will be powered by Galaxy’s Digital Infrastructure which will provide the tokenization technology and secure digital infrastructure that powers the issuance and management of SWEEP tokens.

“Innovation and partnership are at the heart of our ethos at State Street Investment Management and to that end we’re thrilled to deepen our relationship with Galaxy by bringing this groundbreaking product to market together,” said Kim Hochfeld, global head of cash and digital assets for State Street Investment Management. “By partnering with Galaxy, we will push the envelope together and drive the evolution of the TradFi landscape onchain. We’re beginning to see what’s possible when TradFi and DeFi sector players unite – and it’s increasingly clear that joint efforts like this stand to have a far-reaching impact on the future of asset management and capital markets.”

“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,” said Steve Kurz, global head of asset management at Galaxy. “We’re proud to be working with a longtime leader in cash management like State Street to make this innovative approach to digital assets a reality.”

“Tokenization is rapidly becoming the connective tissue between traditional finance and the onchain economy, and SWEEP represents a major leap forward in that evolution,” said Ian De Bode, President of Ondo Finance. “Our planned investment would not only anchor this innovative fund – but also supports the continued growth of Ondo’s fund that offers institutional investors exposure to short-term US Treasuries with 24/7 instant mints and redemptions. 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.”

SWEEP expands State Street Investment Management’s relationship with Galaxy. In September 2024, State Street Investment Management launched three actively managed ETFs sub-advised by Galaxy that are focused on digital assets and disruptive technologies.