Summary:
- State Street Investment Management and Galaxy Asset Management are launching a tokenized liquidity sweep fund on Solana.
- Ondo Finance is expected to commit $200 million as a seed investment.
- The initiative will allow accredited investors to sweep cash balances into PYUSD, creating a 24/7 onchain liquidity source.
- Expansion plans include Stellar and Ethereum, with Solana as the first chain due to its stablecoin and RWA activity.
- Executives describe the partnership as a major leap in merging traditional cash management with the onchain economy.
A new chapter in institutional finance is being written as State Street Investment Management, Galaxy Asset Management, and Ondo Finance come together to launch a tokenized private liquidity fund designed for real-time, 24/7 cash movement on public blockchains. The initiative signals one of the strongest commitments yet from major financial institutions toward integrating tokenized cash into everyday treasury operations.
The planned fund, known as the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), will sit at the center of this collaboration. It aims to bring traditional sweep cash management - a decades-old banking practice used to optimize idle balances - into the onchain world with stablecoins as the liquidity vehicle.
According to the announcement, the fund is designed to take in and pay out PayPal's PYUSD stablecoin, enabling accredited investors to move between cash positions and onchain assets without the usual delays of traditional financial rails.
Launching on Solana first, with expansion planned for Stellar and Ethereum, the SWEEP fund is designed to operate across the ecosystems where stablecoins, tokenized treasuries, and real-world assets (RWAs) are already being actively used.
Why a Tokenized Sweep Fund Matters
In traditional finance, sweep accounts automatically move excess cash into a money market fund or short-term instrument at the end of each business day. But these operations were built for a five-day work week and hours-limited financial markets.
Tokenizing this model changes everything. By moving sweep functions onto public blockchains, SWEEP will allow institutional cash to operate on a 24/7 global cycle, aligning treasury operations with the round-the-clock nature of both stablecoin markets and the broader digital asset economy.
Galaxy Asset Management and State Street believe this step is crucial for institutions seeking efficient and compliant exposure to tokenized liquidity. The fund's ability to operate with real-time settlement and instant movements between digital assets could redefine how large organizations manage idle capital.
Galaxy's global head of asset management, Steve Kurz, summarized this shift with strong emphasis on how different the future of institutional liquidity will look.
These statements underscore the scale of transformation: traditional cash management is being rebuilt for decentralized markets.
Ondo Finance Steps In With $200 Million
A crucial element of the fund's early momentum comes from Ondo Finance, one of the leading companies in tokenized U.S. Treasuries and stablecoin-based yield products. The company is expected to provide $200 million in seed investment for the SWEEP fund.
Ondo's involvement adds both credibility and liquidity depth, positioning SWEEP to serve as a major institutional liquidity source from day one. In a public statement, Ian De Bode, President of Ondo Finance, emphasized how tokenization is evolving into the core link between financial systems. He said,
His comments reflect a growing consensus among fintech builders: tokenized financial instruments may soon become the default for global liquidity, not a niche innovation.
Why Solana Is the First Chain for SWEEP
State Street and Galaxy chose Solana as the initial chain for SWEEP's launch, citing its strong stablecoin activity, high transaction throughput, and rapidly expanding RWA ecosystem.
Solana has become a leading blockchain for:
- Stablecoin settlements
- Tokenized treasury products
- Real-time payments
- low-fee financial operations
These features make it especially suitable for an institutional cash sweep fund that must handle high-volume inflows and outflows without congestion or high costs.
However, the partners made clear that SWEEP is intended to be chain-agnostic, with plans to extend to Stellar and Ethereum. This gives institutions flexibility to operate across different ecosystems based on liquidity needs, regulatory preferences, and existing infrastructure.
What This Means for the Tokenization Trend
Tokenization has accelerated over the last two years, with institutions embracing onchain versions of bonds, treasuries, private funds, and cash. Analysts believe this trend is moving toward a multi-trillion-dollar market over the next decade.
State Street's involvement is especially important. As one of the world's largest custodians and asset managers, the company's decision to participate in a tokenized liquidity fund signals that tokenization is no longer experimental - it has become strategic.
Galaxy, long a major digital asset player, brings onchain operational expertise, while Ondo contributes liquidity and real-world traction in tokenized yield markets.Together, the partnership suggests that tokenized cash management may soon be a standard product across global financial institutions.
Closing Thoughts
The collaboration between State Street, Galaxy, and Ondo marks one of the most significant developments yet in institutional tokenization. With SWEEP, the idea of moving idle cash into productive, compliant, real-time liquidity pools is becoming reality.
From Solana's infrastructure to Ondo's capital to Galaxy's digital asset expertise, the initiative captures how traditional finance and onchain finance are converging faster than ever. The introduction of 24/7 sweep functionality has the potential to redefine corporate treasury operations, investment workflows, and global liquidity distribution.
As tokenization continues to accelerate worldwide, the SWEEP fund stands out as a tangible step toward a financial system that never sleeps, never pauses, and operates with the transparency and composability only public blockchains can offer.
