State Street and Galaxy have teamed up to launch the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized investment vehicle that lets investors “sweep” stablecoins into a yield-bearing asset for 24/7 onchain cash management.
The tokenized fund will launch on Solana, with plans to expand to Stellar and Ethereum. SWEEP uses Galaxy’s tokenization infrastructure, Anchorage as digital custodian, Chainlink for onchain NAV and cross-chain messaging, and supports subscriptions and redemptions with PayPal USD, according to an announcement on Tuesday.
Ondo Finance previously announced it would support the launch when announced in December, with Ondo's flagship OUSG fund serving as the "lead anchor investor" in SWEEP, reportedly to the tune of $200 million. However, Ondo was not named in Tuesday's release. The Block has reached out to the firm for comment.
Aimed at qualified purchasers, SWEEP joins a class of crypto-based investment funds that introduce blockchain rails via a familiar investment form factor. The fund is not unlike BlackRock’s BUIDL or Franklin Templeton’s BENJI, which invest in U.S. Treasurys to provide investors with yield.
Last week, WisdomTree integrated its products into the Stable Sea treasury management platform, enabling the startup’s user base of small- to mid-sized companies to sweep their cash holdings into a productive, relatively safe investment through WisdomTree’s flagship tokenized money market fund.
"This fund allows us to bring the TradFi landscape onchain in a resilient way, guided by our long-standing focus on innovation, risk management and client outcomes," Yie-Hsin Hung, president and chief executive officer of State Street Investment Management, said in a statement.
Earlier this year, State Street announced it would develop tokenized versions of traditional funds and cash products, like onchain money-market funds, exchange-traded funds, and tokenized deposits. The firm, which has $54.5 trillion in assets under custody or administration, signaled last year plans to expand into digital-asset custody.
In 2024, State Street launched three actively managed ETFs subadvised by Galaxy.