State Street and Galaxy to Launch Tokenized Liquidity Fund on Solana (SOL) in 2026

State Street and Galaxy Asset Management have announced their plans to launch a tokenized liquidity fund in early 2026. This fund, known as the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), will utilize stablecoins for investor flows, operating around-the-clock. This move marks an expansion in the use of public blockchains in institutional cash management.

The SWEEP fund will accept subscriptions and redemptions in PYUSD, a stablecoin issued by Paxos, as long as the fund has the necessary assets on hand to process these requests. Access to the fund will be limited to Qualified Purchasers who meet specific thresholds. Ondo Finance has committed $200 million to seed the product.

At launch, SWEEP will be issued on Solana, with plans to subsequently add Stellar (XLM) and Ethereum (ETH) to the mix. Galaxy intends to utilize Chainlink tools to facilitate the movement of data and assets across different blockchain networks.

The fund is designed to cater to institutions seeking to hold cash-like assets onchain without sacrificing the liquidity profile they typically expect from traditional sweep products. Kim Hochfeld, the global head of cash and digital assets at State Street, expressed excitement about the collaboration with Galaxy, stating that it reflects a significant shift in how banks and crypto firms collaborate.

Ondo Finance President Ian De Bode emphasized the convergence of traditional and crypto markets, noting that tokenization is becoming increasingly important as a bridge between the two worlds. He sees SWEEP as a major step forward in this evolution.

This initiative builds upon the existing partnership between State Street and Galaxy, which includes a series of digital-asset ETFs launched in 2024. The companies are optimistic about the potential of SWEEP to revolutionize institutional cash management and drive further innovation in the space.