State Street Investment Management and Galaxy Asset Management have announced a joint venture to launch a tokenized private liquidity fund called the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP). The fund, expected to debut in early 2026, is designed exclusively for qualified institutional buyers and aims to offer continuous, 24/7 liquidity management through tokenized fund shares.
The SWEEP fund will initially operate on the Solana blockchain, selected for its high throughput, low transaction fees, and maturing institutional-grade tooling. The partners have confirmed plans to expand the fund's availability to the Stellar and Ethereum blockchains following the initial rollout on Solana.
A key operational feature is the use of PayPal's regulated U.S. dollar stablecoin, PYUSD, for all subscriptions and redemptions. This integration is intended to enable near-instant capital movement, eliminating dependencies on traditional banking hours. State Street Bank and Trust Company, an affiliate of State Street Investment Management, will serve as the custodian for the fund's treasury assets.
The initiative has garnered significant early institutional backing. Tokenization leader Ondo Finance has committed approximately $200 million in seed capital, signaling strong confidence in the viability of on-chain liquidity markets. This move builds upon the existing collaboration between State Street and Galaxy, which previously resulted in the launch of three digital-asset ETFs in September 2024.
The SWEEP fund represents a major step in bridging traditional finance with public blockchain infrastructure, positioning a major Wall Street institution directly on-chain. It underscores the evolution of tokenization from pilot programs into fully integrated, compliant investment products that meet institutional standards for scale and operational rigor.
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