Large financial institutions State Street and digital asset management company Galaxy Asset Management announced on Wednesday that they plan to jointly launch a tokenized liquidity fund in early 2026, using stablecoins to enable 24/7 uninterrupted investor capital in and outflow, thereby expanding the application of public blockchain in the field of institutional cash management.
The two companies stated that the upcoming fund is named 'State Street Galaxy Onchain Liquidity Sweep Fund' (SWEEP), designed specifically for institutions that wish to hold cash-like assets on-chain without sacrificing the liquidity characteristics offered by traditional Sweep products.
According to the press release, when the fund holds sufficient assets to meet demand, it will accept subscriptions and redemptions in PYUSD (a stablecoin issued in collaboration between PayPal and Paxos). Only qualified buyers who meet specific threshold standards will be able to invest in this fund, and the tokenized asset issuer Ondo Finance has committed to investing approximately 200 million USD as seed capital for the product.
Both parties plan to initially launch SWEEP on Solana, and subsequently support Stellar and Ethereum. Galaxy plans to transfer related data and assets across multiple chains using Chainlink's tools.
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