Key Takeaways
- • State Street Investment Management and Galaxy Digital announced the forthcoming launch of SWEEP (State Street Galaxy Onchain Liquidity Sweep Fund), a tokenized private liquidity fund designed to deliver 24/7 onchain cash management using PYUSD stablecoins for subscriptions and redemptions.
- • Ondo Finance will seed the fund with approximately $200 million, positioning SWEEP as a significant institutional entry point into blockchain-based liquidity management.
- • SWEEP is scheduled to debut on the Solana blockchain in early 2026, with planned integrations on Stellar and Ethereum; Galaxy will leverage Chainlink to facilitate cross-chain interoperability.
- • The fund combines State Street's institutional expertise in traditional cash and liquidity management with Galaxy's blockchain infrastructure capabilities, targeting Qualified Purchasers meeting specific eligibility criteria and minimum investment thresholds.
- • State Street Bank and Trust Company will serve as custodian for the fund's treasury holdings, bridging traditional banking custody with tokenized onchain operations.
Summary
State Street Investment Management and Galaxy Asset Management (an affiliate of Galaxy Digital Inc., NASDAQ/TSX: GLXY) announced on December 10, 2025, the forthcoming launch of SWEEP, a tokenized private liquidity fund that represents a significant convergence of traditional finance and decentralized blockchain infrastructure. The fund is designed to offer eligible institutional investors 24/7 onchain liquidity by utilizing PYUSD stablecoins for both subscriptions and redemptions, subject to portfolio availability.
Ondo Finance will seed SWEEP with approximately $200 million, establishing a substantial capital base at launch and signaling institutional confidence in the tokenized liquidity vehicle. The fund is anticipated to debut on the Solana blockchain in early 2026, with subsequent integrations planned for Stellar and Ethereum blockchains. Galaxy Digital will leverage Chainlink's cross-chain interoperability solutions to ensure seamless operation across multiple blockchain networks, enhancing accessibility for institutional participants.
The partnership leverages complementary capabilities from both sponsors: State Street brings decades of expertise in traditional cash and liquidity management, while Galaxy contributes deep capabilities in blockchain infrastructure and tokenization technology. SWEEP is structured as a private fund available exclusively to Qualified Purchasers meeting specified eligibility criteria and minimum investment amounts. State Street Bank and Trust Company will function as custodian for the fund's treasury holdings, providing institutional-grade custody services that bridge traditional banking infrastructure with onchain operations.
This initiative reflects the accelerating institutional adoption of tokenized asset structures and onchain cash management solutions, positioning both State Street and Galaxy Digital as key infrastructure providers in the broader transformation from traditional finance to decentralized finance mechanisms. The fund's design emphasizes operational continuity through 24/7 trading capabilities while maintaining the regulatory and custodial safeguards expected by institutional investors.
Ondo Finance will seed SWEEP with approximately $200 million, establishing a substantial capital base at launch and signaling institutional confidence in the tokenized liquidity vehicle. The fund is anticipated to debut on the Solana blockchain in early 2026, with subsequent integrations planned for Stellar and Ethereum blockchains. Galaxy Digital will leverage Chainlink's cross-chain interoperability solutions to ensure seamless operation across multiple blockchain networks, enhancing accessibility for institutional participants.
The partnership leverages complementary capabilities from both sponsors: State Street brings decades of expertise in traditional cash and liquidity management, while Galaxy contributes deep capabilities in blockchain infrastructure and tokenization technology. SWEEP is structured as a private fund available exclusively to Qualified Purchasers meeting specified eligibility criteria and minimum investment amounts. State Street Bank and Trust Company will function as custodian for the fund's treasury holdings, providing institutional-grade custody services that bridge traditional banking infrastructure with onchain operations.
This initiative reflects the accelerating institutional adoption of tokenized asset structures and onchain cash management solutions, positioning both State Street and Galaxy Digital as key infrastructure providers in the broader transformation from traditional finance to decentralized finance mechanisms. The fund's design emphasizes operational continuity through 24/7 trading capabilities while maintaining the regulatory and custodial safeguards expected by institutional investors.
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