State Street and Galaxy have partnered to launch the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized investment vehicle that enables investors to “sweep” stablecoins into yield-generating assets for 24/7 onchain cash management.
This tokenized fund will launch on Solana and is planned to expand to Stellar and Ethereum. SWEEP utilizes Galaxy’s tokenization infrastructure, Anchorage as the digital custodian, Chainlink for on-chain net asset value and cross-chain messaging, and supports subscriptions and redemptions using PayPal USD.Announcement Tuesday.
Ondo Finance had previously announced it would support the project’s launch in December, with Ondo’s flagship OUSG fund serving as the "lead investor" in SWEEP, reportedly investing "$200 million". However, Ondo’s name was not mentioned in the press release issued on Tuesday. The Block has reached out to the company for comment.
SWEEP is a cryptocurrency investment fund targeting qualified investors, introducing blockchain technology through familiar investment vehicles. Similar to BlackRock’s BUIDL or Franklin Templeton’s BENJI, which invest in U.S. Treasuries to generate returns for investors.
Last week, WisdomTree integrated its product into the Stable Sea fund management platform, enabling this startup’s small and medium-sized business user base to… empty their cash by converting assets into an efficient, relatively safe investment through WisdomTree’s flagship tokenized money market fund.
“This fund enables us to bring traditional finance on-chain in a prudent manner, thanks to our long-standing focus on innovation, risk management, and client outcomes,” said Hong Yixing, President and CEO of State Street Global Advisors, in a statement.
Earlier this year, State Street announced it would develop tokenized versions of the traditional funds and cash products it holds, such as on-chain money market funds, exchange-traded funds, and tokenized deposits. The company, which custodies or manages $54.5 trillion in assets, signaled last year its plans to expand into digital asset custody.
In 2024, State Street launched three actively managed ETFs with investment advisory services provided by Galaxy.
Galaxy reported a net loss of $216 million, driven by declining cryptocurrency prices, and expects significant revenue growth by the first quarter of 2026, primarily due to its large-scale operations. HELIOS data center construction The company also received approval last month to re-register its incorporation from the Cayman Islands to Delaware, which is expected to be completed by mid-May.