State Street Investment Management and Galaxy Asset Management, a subsidiary of Galaxy Digital have announced the launch of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP).
The tokenised private liquidity fund will promote 24/7 onchain liquidity by utilising the PYUSD stablecoins for subscriptions and redemptions, subject to fund portfolio availability.
Ondo Finance is anticipated to seed the fund with approximately $200 million.
“By partnering with Galaxy, we will push the envelope together and drive the evolution of the TradFi landscape onchain,” said Kim Hochfeld, global head of cash and digital assets for State Street Investment Management.
“We’re beginning to see what’s possible when TradFi and DeFi sector players unite – and it’s increasingly clear that joint efforts like this stand to have a far-reaching impact on the future of asset management and capital markets.”
An initial debut on Solana is planned for early 2026, with the fund set to expand to Stellar and Ethereum in subsequent phases.
Galaxy intends to also leverage Chainlink to help further facilitate cross-chain interoperability.
“SWEEP is a game-changing collaboration that will offer digital investors an onchain liquidity fund option, reimagining the way institutional DeFi investors hold cash and manage their operations,” said Steve Kurz, global head of asset management at Galaxy.
SWEEP brings together State Street’s cash and liquidity management functions with Galaxy’s blockchain infrastructure to offer an onchain cash management vehicle for qualified investors.
Custody of the fund’s Treasury assets will be handled by State Street Bank and Trust Company, an affiliate of State Street Investment Management.
