State Street and Galaxy Asset Management plan to launch a tokenized liquidity pool in early 2026 that uses stablecoins for 24-hour investor flows, expanding the use of public blockchains in institutional cash management, the companies announced Wednesday.
The State Street Galaxy Onchain Liquidity Sweep Fund, or SWEEP, will accept subscriptions and redemptions in PYUSD, a stablecoin issued by PayPal, as long as the fund has assets available to process requests. Only qualified buyers who meet established thresholds can access the fund. Ondo Finance committed around $200 million to start the product.
Companies hope to issue SWEEP on Solana at launch, then add Stellar (XLM) and Ethereum (ETH). Galaxy plans to trust Chainlink tools to move data and assets across chains.
The companies said the fund is designed for institutions that want to hold cash-like assets on-chain without giving up the liquidity profile they expect from traditional sweepstakes products.
Kim Hochfeld, global head of cash and digital assets at State Street, said the project reflects a shift in the way banks and crypto companies work together.
“By partnering with Galaxy, together we will go further and drive the evolution of the on-chain TradFi landscape,” he said.
Ondo Finance President Ian De Bode said the company’s planned investment shows how traditional and crypto markets continue to converge.
“Tokenization is quickly becoming the connective tissue between traditional finance and the on-chain economy, and SWEEP represents a big step forward in that evolution,” he said.
The effort adds to the companies’ joint work, which includes a suite of digital asset ETFs launching in 2024.
