Key Takeaways
- • State Street and Galaxy Digital launched the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized private liquidity fund pairing short-duration U.S. Treasury exposure with 24/7 blockchain market access, addressing institutional demand for native digital asset cash management.
- • SWEEP charges a 0.50% total expense ratio and accepts subscriptions via PYUSD and USDC stablecoins at any time, with USD deposits on business days; minimum investment is $5 million for entities and $1 million for individuals, with daily redemptions available on business days.
- • The fund initially launches on Solana with multi-chain expansion planned, holding eligible assets including U.S. Treasury bills, notes, bonds, Treasury-backed repos, TIPS, Treasury floating-rate notes, USD deposits, and stablecoins—designed to generate high current income while preserving principal and liquidity.
- • State Street Investment Management (SSGA Funds Management, Inc.) serves as investment manager, combining State Street's decades of institutional liquidity and treasury management expertise with Galaxy's native digital asset market knowledge across trading, lending, and onchain operations.
- • Ondo planned a seed investment in the fund, signaling institutional confidence in the tokenized liquidity infrastructure and representing a milestone in State Street's broader digital strategy to offer onchain investment solutions and support programmatic 24/7 trading.
Summary
State Street and Galaxy Digital announced the launch of SWEEP (State Street Galaxy Onchain Liquidity Sweep Fund), a tokenized private liquidity fund engineered to bridge traditional finance cash management with blockchain-native market infrastructure. The fund represents a strategic response to institutional investor demand for cash management solutions that operate natively in digital asset markets while maintaining access to yield-generating U.S. Treasury instruments.
The partnership leverages complementary institutional strengths: State Street contributes decades of heritage in asset management, liquidity operations, and treasury management, while Galaxy brings specialized expertise in digital asset trading, lending markets, and onchain infrastructure. SWEEP is structured as a tokenized liquidity strategy pairing short-duration U.S. Treasury exposure—including bills, notes, bonds, Treasury-backed repos, TIPS, and floating-rate notes—with blockchain settlement and 24/7 market accessibility. The fund accepts subscriptions in PYUSD (PayPal's USD stablecoin) and USDC at any time, alongside traditional USD deposits via Fedwire on business days, enabling seamless integration with crypto-native workflows.
Fund economics reflect institutional standards: a 0.50% total expense ratio applies to average daily net assets, with minimum investments set at $5 million for entities and $1 million for individuals. Redemptions occur daily on business days in USD (by 2:00 PM ET) and 24/7 in PYUSD, subject to portfolio availability. The fund launches on Solana with plans for multi-chain expansion. SSGA Funds Management, Inc. serves as investment manager, with the fund seeking high current income while preserving principal and liquidity. Ondo's planned seed investment underscores institutional confidence in the initiative, positioning SWEEP as a significant milestone in State Street's digital transformation strategy to offer onchain investment solutions and enable programmatic trading across the 24/7 digital asset ecosystem.
The partnership leverages complementary institutional strengths: State Street contributes decades of heritage in asset management, liquidity operations, and treasury management, while Galaxy brings specialized expertise in digital asset trading, lending markets, and onchain infrastructure. SWEEP is structured as a tokenized liquidity strategy pairing short-duration U.S. Treasury exposure—including bills, notes, bonds, Treasury-backed repos, TIPS, and floating-rate notes—with blockchain settlement and 24/7 market accessibility. The fund accepts subscriptions in PYUSD (PayPal's USD stablecoin) and USDC at any time, alongside traditional USD deposits via Fedwire on business days, enabling seamless integration with crypto-native workflows.
Fund economics reflect institutional standards: a 0.50% total expense ratio applies to average daily net assets, with minimum investments set at $5 million for entities and $1 million for individuals. Redemptions occur daily on business days in USD (by 2:00 PM ET) and 24/7 in PYUSD, subject to portfolio availability. The fund launches on Solana with plans for multi-chain expansion. SSGA Funds Management, Inc. serves as investment manager, with the fund seeking high current income while preserving principal and liquidity. Ondo's planned seed investment underscores institutional confidence in the initiative, positioning SWEEP as a significant milestone in State Street's digital transformation strategy to offer onchain investment solutions and enable programmatic trading across the 24/7 digital asset ecosystem.
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