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Summary
- Galaxy Digital and State Street Investment Management have launched the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized cash management product aimed at delivering 24/7 on-chain liquidity.
- The fund lets institutional investors subscribe and redeem using stablecoins while earning yield on underlying traditional securities, initially on Solana with plans to expand to Ethereum and Stellar.
- Galaxy provides tokenization infrastructure, Anchorage Digital handles digital asset custody, and State Street manages the off-chain portfolio, extending the institutional trend set by BlackRock’s BUIDL tokenized Treasury fund.
According to CoinDesk, State Street and Galaxy have rolled out SWEEP, a “tokenized private liquidity fund” designed to migrate traditional cash and liquidity management products onto public blockchains.
SWEEP brings cash management on-chain via Solana
State Street Investment Management will run the underlying portfolio of short‑duration, investment‑grade securities—functionally similar to a money market or liquidity fund—while Galaxy’s digital infrastructure issues and manages tokenized fund shares on Solana.
Subscriptions and redemptions are processed using PayPal USD (PYUSD) stablecoins, enabling qualified investors to move capital into and out of the fund around the clock, subject to portfolio availability, instead of being constrained by bank and market operating hours.
The product is expected to debut with an anchor investment of roughly $200 million from Ondo Finance, whose OUSG tokenized Treasury fund will use SWEEP to further diversify its reserves and access additional on-chain liquidity options.
State Street Bank and Trust Company will serve as custodian for the fund’s traditional securities holdings, while Anchorage Digital provides institutional‑grade custody for the digital tokens, completing what the partners describe as a full-stack link between off‑chain assets and on‑chain representations.
Part of a broader tokenized cash and Treasury boom
SWEEP is initially issued on Solana, chosen for its high throughput and low transaction costs, with the firms planning future deployments on Ethereum and Stellar to meet clients where their existing on-chain activity resides.
Commentary from Galaxy and State Street on LinkedIn frames the fund as a way to “unlock the potential for 24/7 onchain liquidity” by giving institutions a cash‑like token that can plug directly into smart contracts, DeFi protocols, and on-chain settlement flows.
The launch follows the success of BlackRock’s BUIDL tokenized U.S. Treasury fund on Ethereum, where each BUIDL token represents a $1 share in a portfolio of T‑bills and repos and offers roughly 4.75%–5.25% annual yield while remaining fully programmable as an ERC‑20 asset.
Analysts tracking the sector note that tokenized Treasury products crossed $7 billion in assets in early 2026, with issuers such as BlackRock, Franklin Templeton, and Ondo Finance driving most of the growth as institutions look to bring risk‑free rate yield into on-chain portfolios.
A recent crypto.news analysis argued that SWEEP represents “the next phase” of that trend: instead of just tokenizing Treasuries, it tokenizes the entire cash management wrapper, letting large investors sweep idle stablecoins into a State Street‑managed liquidity fund without leaving the blockchain environment.
