State Street Investment Management and Galaxy Asset Management are teaming up with Ondo Finance on a tokenized liquidity fund that will sweep cash balances directly onto public blockchains, creating a new source of 24/7 onchain liquidity.
The planned State Street Galaxy Onchain Liquidity Sweep Fund—dubbed SWEEP—will accept and pay out PayPal’s stablecoin for accredited investors, the companies announced Tuesday.
Ondo plans to seed the fund with $200 million, linking one of the leading tokenized real-world asset (RWA) issuers directly to State Street’s tokenization infrastructure. The fund will run on Galaxy Digital’s technology stack, while State Street Bank and Trust Company, an affiliate of State Street Investment Management, will serve as custodian.
SWEEP is expected to debut on Solana in early 2026, with later expansions to other networks including Stellar and Ethereum, leveraging Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
Institutions battle to define “onchain cash”
The move adds another major contender to the escalating race to shape institutional onchain cash. BlackRock and Franklin Templeton already operate tokenized cash-management products such as money-market and short-term fixed-income funds on public blockchains. Meanwhile, Ondo has carved out a niche by tokenizing Treasurys and other credit assets for use across crypto markets.
“By partnering with Galaxy, we will push the envelope together and drive the evolution of the TradFi landscape onchain,” said Kim Hochfeld, State Street Investment Management’s global head of cash and digital assets.
“Tokenization is rapidly becoming the connective tissue between traditional finance and the onchain economy,” added Ian De Bode, president of Ondo Finance. “Our planned investment would not only anchor this innovative fund, but also support the continued growth of Ondo’s offering that gives institutional investors exposure to short-term U.S. Treasuries with 24/7 instant mints and redemptions.”
Building an onchain capital-markets stack
The launch comes as tokenized funds and tokenized equities begin to look less like standalone experiments and more like core components of an emerging onchain capital-markets stack.
On Wednesday, Superstate opened the door for SEC-registered public companies to raise capital directly onchain through its Direct Issuance Programs on Ethereum and Solana. The initiative targets the equity layer of that stack by allowing issuers to sell new shares for stablecoins and settle instantly into investor wallets.
State Street’s partnership with Galaxy and Ondo also illustrates how roles are crystallizing as traditional finance and crypto firms increasingly converge. State Street provides regulatory heft and custody capabilities, Galaxy adds digital-asset infrastructure and tokenization know-how, and Ondo brings both capital and an established RWA distribution network.
Solana’s role in the tokenization race
Solana’s selection as the fund’s initial home underscores another competitive battle taking shape beneath the broader product race. The network has emerged as a popular venue for tokenized assets and high-throughput trading—spanning tokenized public equities to early onchain liquidity-fund experiments—as issuers gravitate toward lower fees and rapid settlement.
Some of the world’s largest institutions have already chosen the Solana blockchain for their digital-asset strategies, including Western Union — which handles more than $100 billion in annual remittance volume — and Pfizer, which processes $2 trillion in merchant payments each year. Physical staked ETFs on Solana have also grown to nearly $1 billion in assets under management.
By launching on Solana first, with planned expansions to Stellar and Ethereum, SWEEP will be able to plug into multiple ecosystems where stablecoins and RWA tokens are already deeply embedded in the infrastructure.
