Key Takeaways
- • State Street Investment Management and Galaxy Asset Management, an affiliate of Galaxy Digital Inc. (NASDAQ/TSX: GLXY), announced the forthcoming launch of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized private liquidity fund.
- • Ondo Finance is anticipated to seed SWEEP with approximately $200 million, per the announcement.
- • SWEEP will accept PYUSD stablecoin for subscriptions and redemptions, enabling 24/7 onchain liquidity subject to the fund's portfolio availability, and is open to Qualified Purchasers.
- • The fund is expected to debut on Solana in early 2026, with planned integrations on Stellar and Ethereum, and Galaxy intends to use Chainlink for cross-chain interoperability.
- • State Street Bank and Trust Company will serve as custodian for the fund's treasury holdings, while Galaxy's Digital Infrastructure will provide tokenization technology.
Summary
State Street Investment Management and Galaxy Asset Management, an affiliate of Galaxy Digital Inc. (NASDAQ/TSX: GLXY), announced the forthcoming launch of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized private liquidity fund designed to offer 24/7 onchain liquidity. According to the companies, the fund will use PYUSD stablecoins for subscriptions and redemptions, subject to availability from the fund's portfolio. SWEEP will be available to Qualified Purchasers meeting certain eligibility criteria and minimum investment amounts.
Ondo Finance is anticipated to seed the fund with approximately $200 million. The fund is expected to debut on the Solana blockchain in early 2026, with additional integrations planned for Stellar and Ethereum. Galaxy intends to leverage Chainlink to facilitate cross-chain interoperability.
The structure combines State Street's long-standing expertise in traditional cash and liquidity management with Galaxy's blockchain infrastructure capabilities. State Street Bank and Trust Company, an affiliate of State Street Investment Management, will serve as custodian for the fund's treasury holdings. Galaxy's Digital Infrastructure will provide the tokenization technology and digital infrastructure used to issue and manage SWEEP tokens.
Kim Hochfeld, global head of cash and digital assets at State Street Investment Management, described the product as a step toward bringing TradFi and DeFi players together. Steve Kurz, global head of asset management at Galaxy, said the fund would offer digital investors an onchain liquidity option for institutional DeFi participants. Ian De Bode, President of Ondo Finance, said the planned investment supports the continued growth of Ondo's tokenized short-term US Treasuries fund, which offers 24/7 instant mints and redemptions.
The announcement extends a relationship between the firms; in September 2024, State Street Investment Management launched three actively managed ETFs sub-advised by Galaxy focused on digital assets and disruptive technologies. The release notes the investment carries risk of loss of principal, the fund is not FDIC insured, and any investment remains subject to definitive offering documents. The minimum initial subscription is $5,000,000 for entity investors and $1,000,000 for individual investors, per the release.
Ondo Finance is anticipated to seed the fund with approximately $200 million. The fund is expected to debut on the Solana blockchain in early 2026, with additional integrations planned for Stellar and Ethereum. Galaxy intends to leverage Chainlink to facilitate cross-chain interoperability.
The structure combines State Street's long-standing expertise in traditional cash and liquidity management with Galaxy's blockchain infrastructure capabilities. State Street Bank and Trust Company, an affiliate of State Street Investment Management, will serve as custodian for the fund's treasury holdings. Galaxy's Digital Infrastructure will provide the tokenization technology and digital infrastructure used to issue and manage SWEEP tokens.
Kim Hochfeld, global head of cash and digital assets at State Street Investment Management, described the product as a step toward bringing TradFi and DeFi players together. Steve Kurz, global head of asset management at Galaxy, said the fund would offer digital investors an onchain liquidity option for institutional DeFi participants. Ian De Bode, President of Ondo Finance, said the planned investment supports the continued growth of Ondo's tokenized short-term US Treasuries fund, which offers 24/7 instant mints and redemptions.
The announcement extends a relationship between the firms; in September 2024, State Street Investment Management launched three actively managed ETFs sub-advised by Galaxy focused on digital assets and disruptive technologies. The release notes the investment carries risk of loss of principal, the fund is not FDIC insured, and any investment remains subject to definitive offering documents. The minimum initial subscription is $5,000,000 for entity investors and $1,000,000 for individual investors, per the release.
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