Galaxy Digital and State Street Investment Management have jointly launched the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized cash management product designed to deliver 24/7 on-chain liquidity to institutional investors. The fund allows qualified participants to subscribe and redeem using PayPal USD (PYUSD) stablecoins while earning yield on an underlying portfolio of short-duration, investment-grade securities managed by State Street.
SWEEP is initially issued on the Solana blockchain, chosen for its high throughput and low transaction costs, with plans to expand to Ethereum and Stellar. Galaxy provides the tokenization infrastructure, Anchorage Digital handles digital asset custody, and State Street Bank and Trust serves as custodian for the traditional securities. The launch includes an anchor investment of approximately $200 million from Ondo Finance, whose OUSG tokenized Treasury fund will use SWEEP to diversify reserves and access additional on-chain liquidity.
The product follows the success of BlackRock’s BUIDL tokenized Treasury fund and falls within a broader trend where tokenized Treasury products crossed $7 billion in assets in early 2026. Analysts view SWEEP as an evolution that tokenizes entire cash management workflows, allowing large investors to sweep idle stablecoins into a State Street-managed fund without leaving the blockchain environment.
