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State Street and Galaxy Unveil Tokenized Liquidity Fund on Solana

State Street and Galaxy Asset Management have announced plans to launch a tokenized liquidity fund, SWEEP, on the Solana blockchain in early 2026.

This innovative fund aims to facilitate constant investor flows using stablecoins, specifically PayPal's PYUSD, for subscriptions and redemptions.

Only Qualified Purchasers meeting specific criteria will be granted access to the fund, which Ondo Finance has seeded with $200 million.

SWEEP is designed for institutions seeking to hold cash-like assets on-chain while maintaining the liquidity typically associated with traditional sweep products.

The fund's launch signifies a collaborative shift between conventional banks and crypto firms, according to Kim Hochfeld, State Street's global head of cash and digital assets.

Galaxy will utilize Chainlink tools to enhance data movement and asset transfers across different blockchain systems.

This initiative reflects a growing convergence between traditional finance and on-chain economies, highlighted by Ondo Finance President Ian De Bode.

The SWEEP fund follows previous joint efforts between State Street and Galaxy, including a series of digital-asset ETFs launched in 2024.

Overall, the development marks a significant step toward integrating institutional cash management into the crypto landscape.

As such innovations emerge, the role of public blockchains in financial services continues to evolve and expand.