State Street and Galaxy Set Sights on 2026 Launch of Tokenized Liquidity Fund on Solana

State Street and Galaxy Asset Management plan to roll out a tokenized liquidity fund in early 2026, using stablecoins to support continuous investor subscriptions and redemptions and deepening the role of public blockchains in institutional cash management.

The product, known as the State Street Galaxy Onchain Liquidity Sweep Fund, or SWEEP, will allow inflows and outflows in Paxos-issued PYUSD, subject to the fund maintaining sufficient assets to meet demand. Participation will be restricted to Qualified Purchasers that meet required eligibility thresholds. Ondo Finance has committed roughly $200 million to seed the fund.

At launch, SWEEP is expected to be issued on the Solana blockchain, with plans to add support for Stellar and Ethereum over time. Galaxy said it will rely on Chainlink’s cross-chain infrastructure to enable the transfer of data and assets across networks.

The firms said the fund is designed for institutions looking to hold cash-equivalent assets onchain without sacrificing the liquidity profile typically offered by traditional sweep products.

Kim Hochfeld, global head of cash and digital assets at State Street, said the initiative highlights an evolving partnership model between established financial institutions and crypto-native firms.

“Working with Galaxy allows us to push boundaries and accelerate the migration of traditional finance onchain,” Hochfeld said.

Ondo Finance President Ian De Bode said the firm’s planned investment reflects the growing convergence of traditional markets and the onchain economy.

“Tokenization is fast becoming the connective tissue between traditional finance and blockchain-based markets, and SWEEP marks an important step in that evolution,” he said.

The launch builds on the firms’ existing collaboration, which includes a lineup of digital-asset exchange-traded funds introduced in 2024.

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