Galaxy and State Street Introduce Solana-Powered SWEEP Tokenized Cash Fund
U.S. stocks started the day on a positive note on Tuesday, with major indexes rising, particularly AI-linked storage stocks. This comes despite a 10% drop in PayPal’s shares following weak profit forecasts.
Summary
- Galaxy Digital, alongside State Street Investment Management, has introduced the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP). This tokenized cash management solution aims to provide continuous on-chain liquidity.
- Institutional investors can subscribe and redeem using stablecoins while generating yield from underlying conventional securities, beginning with Solana and planned expansions to Ethereum and Stellar.
- Galaxy supplies the tokenization infrastructure, Anchorage Digital manages digital asset custody, while State Street oversees the off-chain portfolio, mirroring the institutional trends initiated by BlackRock’s BUIDL tokenized Treasury fund.
As reported by CoinDesk, State Street and Galaxy have launched SWEEP as a “tokenized private liquidity fund,” intended to transition traditional cash and liquidity management products to public blockchains.
SWEEP leverages Solana for cash management
State Street Investment Management will manage a portfolio of short-duration, investment-grade securities, similar in function to a money market or liquidity fund, while Galaxy’s digital infrastructure takes charge of issuing and managing tokenized fund shares on Solana.
Subscriptions and redemptions will utilize PayPal USD (PYUSD) stablecoins, allowing qualified investors to move funds in and out of the fund anytime, as long as portfolio availability permits, removing the limitations of bank and market hours.
The product is set to launch with an anchor investment of approximately $200 million from Ondo Finance, which will leverage SWEEP to enhance its reserves and explore additional on-chain liquidity avenues.
State Street Bank and Trust Company will act as the custodian for the traditional securities in the fund, while Anchorage Digital offers institutional-level custody for the digital tokens, creating a comprehensive connection between off-chain assets and their on-chain counterparts.
A segment of a larger tokenized cash and Treasury surge
SWEEP is initially launched on Solana due to its high throughput and minimal transaction costs, with future adaptations planned on Ethereum and Stellar to align with client activity in existing on-chain environments.
Posts from Galaxy and State Street on LinkedIn highlight the fund as a means to “unlock the potential for 24/7 on-chain liquidity,” offering institutions a cash-like token that can seamlessly integrate with smart contracts, DeFi protocols, and on-chain settlement processes.
This launch follows the success of BlackRock’s BUIDL tokenized U.S. Treasury fund on Ethereum, where each BUIDL token represents a $1 share in a portfolio of T-bills and repos, offering around 4.75%–5.25% annual yield and full programmability as an ERC-20 asset.
Analysts monitoring the sector observe that tokenized Treasury products grew past $7 billion in assets by early 2026, with issuers like BlackRock, Franklin Templeton, and Ondo Finance leading the charge as institutions seek to integrate risk-free rate yield into on-chain portfolios.
A recent analysis by crypto.news suggests that SWEEP represents “the next phase” of this trend: rather than merely tokenizing Treasuries, it encompasses the whole cash management wrapper, enabling large investors to funnel idle stablecoins into a State Street-managed liquidity fund while remaining within the blockchain sphere.