State Street and Galaxy will launch the on-chain liquidity fund SWEEP, with Ondo expected to invest $200 million in seed funding.

Odaily reports that State Street Investment Management and Galaxy Asset Management have announced the joint launch of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a private on-chain liquidity fund denominated and redeemed in the PYUSD stablecoin. This fund will provide accredited investors with 24/7 on-chain cash management capabilities. Ondo Finance is expected to invest approximately $200 million in the fund as seed funding.

According to reports, SWEEP is planned to launch on Solana in early 2026, and will subsequently expand to the Stellar and Ethereum ecosystems. The fund will be custodied by State Street Bank and Trust Company, and Galaxy will provide the underlying on-chain infrastructure and tokenization technology, enabling cross-chain interoperability through Chainlink.

State Street stated that the product combines its years of experience in tokenization and cash management with Galaxy's technological advantages in Web3 infrastructure, aiming to provide institutional investors with a brand-new on-chain cash management option. Galaxy claims that SWEEP will reshape how institutions manage liquidity in the DeFi ecosystem.

Ian De Bode, President of Ondo Finance, stated that tokenization is gradually becoming a key link connecting TradeFi and the Onchain economy. This collaboration will accelerate the development of institutional-grade on-chain financial systems and create synergies with Ondo's on-chain US Treasury products. (Businesswire)