Key Takeaways
- • State Street Investment Management and Galaxy Asset Management are launching the State Street Galaxy Onchain Liquidity Sweep Fund, a tokenized private liquidity fund available to qualified purchasers. - Ondo Finance is committing approximately $200 million as the initial investor. - The fund is designed to offer round-the-clock liquidity by using PayPal's PYUSD stablecoin for subscriptions and redemptions, within set limits, rather than a traditional daily redemption window. - State Street Bank will act as custodian, while Galaxy's digital infrastructure handles tokenization and issuance. - The fund was scheduled to launch on Solana in early 2026, with planned integrations on Stellar and Ethereum using Chainlink for cross-chain functionality.
Summary
State Street Investment Management and Galaxy Asset Management are launching a tokenized liquidity fund aimed at digital asset investors who expect continuous liquidity rather than a traditional daily redemption window. The vehicle, the State Street Galaxy Onchain Liquidity Sweep Fund, is structured as a private fund open to qualified purchasers. Per the source article, the fund will enable round-the-clock liquidity by using PayPal's PYUSD stablecoin for subscription and redemption activity, subject to limits. Ondo Finance is committing approximately $200 million as the initial investor. The operating structure splits responsibilities between the two firms. State Street Bank will serve as custodian of the fund's assets, while Galaxy's digital infrastructure will handle tokenization and issuance. The fund was initially scheduled to launch on Solana's blockchain in early 2026, with subsequent integrations planned for Stellar and Ethereum. Chainlink will provide the cross-chain functionality. Publisher materials describe the product as a tokenized strategy pairing short-duration U.S. Treasury exposure with stablecoin yield and onchain cash movement. The article is updated to state that the fund launched on 5 May 2026. The launch is presented as a milestone in State Street's digital strategy to offer onchain investment solutions and support 24/7 programmatic trading.
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