State Street, Galaxy to Launch Solana Tokenized Fund

SWEEP becomes the first Solana-issued product from a global bank, with PYUSD powering 24/7 subscription and redemption flows.

The fund targets institutions seeking cash-like liquidity onchain, with Galaxy handling issuance and State Street acting as custodian.

Ondo commits approximately $200M to seed SWEEP, reinforcing growing adoption of tokenized finance across major TradFi and crypto partners.

State Street and Galaxy Asset Management announced that they will launch the State Street Galaxy Onchain Liquidity Sweep Fund, known as SWEEP, on Solana in early 2026. The companies revealed the plan after confirming that the tokenized liquidity product will use PYUSD for investor flows and will operate on public blockchains around the clock. The initiative involves State Street, Galaxy, and Ondo Finance, which committed about $200 million to seed the fund.

Solana Selected for Initial Onchain Launch

The firms said SWEEP will issue its first tokens on Solana, the first time a global systemically important bank issues assets on that network. They added that future integrations will include Stellar and Ethereum. Galaxy stated that it will use Chainlink tools to support cross-chain transfers of data and assets.

This structure allows subscriptions and redemptions in PYUSD when assets are available. The companies said only Qualified Purchasers who meet required thresholds can access the fund. They also noted that State Street Bank and Trust Company will act as custodian for treasury holdings.

Institutions Target Onchain Cash Management

The partners explained that SWEEP is designed for institutions seeking cash-like assets without losing liquidity features found in traditional sweep products. Kim Hochfeld, State Street’s global head of cash and digital assets, said the collaboration shows changes in how banks and crypto companies work together. She said the initiative aims to advance onchain financial tools through combined expertise.

Additionally, Galaxy’s global head of asset management, Steve Kurz, described the product as a new option for digital investors who want operational liquidity. He said the structure relies on Galaxy’s digital infrastructure to manage SWEEP’s issuance and token lifecycle.

Tokenization Commitments Continue to Expand

Ondo Finance President Ian De Bode said the firm’s planned investment shows the growing link between traditional finance and blockchain-based markets. He said tokenization supports both sectors by enabling new operating models. The companies added that the effort extends their existing relationship, which includes digital-asset ETFs launched in 2024.

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