According to the materials of the site - By BSCN
SWEEP is a tokenized liquidity fund created by Ondo Finance, State Street Investment Management, and Galaxy Asset Management. It aims to transfer traditional cash management to the blockchain while maintaining the liquidity profile that institutional investors expect from existing automatic withdrawal products.
The launch of the fund on Solana is scheduled for early 2026. Subscriptions and redemptions will be accepted in PYUSD, a regulated stablecoin issued by Paxos. Access to the product is limited to qualified buyers. The launch also includes planned anchor investments from Ondo Finance through its OUSG fund.
SWEEP, short for State Street Galaxy Onchain Liquidity Sweep Fund, is a tokenized liquidity instrument created for institutions that want to hold assets similar to cash in the blockchain while retaining access to reliable redemption windows. Traditionally, automatic withdrawal funds allow investors to place idle cash in short-term instruments while maintaining quick convertibility. SWEEP applies this structure to the blockchain environment.
The fund will work with PYUSD for subscription and redemption of shares as long as the fund has assets available to process requests. This detail makes it similar to standard accounts with automatic fund transfers used by banks and asset managers, but with the operational advantages of public blockchain platforms. Ondo Finance has allocated about 200 million dollars as initial capital for the launch.
"We are starting to see what is possible when players from the TradFi and DeFi sectors come together, and it is becoming increasingly clear that collaborative efforts like this can have far-reaching implications for the future of asset management and capital markets," said Kim Hochfeld, global head of cash and digital assets at State Street Investment Management.
Galaxy Asset Management, a subsidiary of Galaxy Digital, will assist in managing and distributing the fund.
OUSG, introduced in 2023, is a tokenized product from Ondo Finance that invests in U.S. Treasury bonds. It allows investors to access short-term government bonds in a tokenized format with near-instant settlement in stablecoins. Since its launch, OUSG has focused on transparency, clear reporting, daily interest accrual, and reliable redemption.
Since 2023, the product has expanded in several phases:
Instant subscription and redemption at any time
Diversified reserves within core tokenized funds
Access to multiple blockchains: Ethereum, Solana, Ripple, and Polygon
Institutional-level reporting and clear proof of reserves
SWEEP complements this structure by offering another high-quality reserve component. OUSG aims to be a leading anchor investor in the fund. This will diversify existing assets, increase liquidity, and improve redemption capabilities during periods of high demand in the blockchain.
Currently, OUSG includes investments in several core tokenized products. These include:
BUIDL by BlackRock
FDIT by Fidelity
BENJI by Franklin Templeton
WTGXX by WisdomTree
ULTRA by Wellington Management and FundBridge Capital
The addition of SWEEP fits into this model of broad diversification of reserves. This approach strengthens OUSG's ability to meet redemption requests and supports the liquidity of stablecoins during periods of volatility. As OUSG allows for quick conversion of funds into stablecoins, having multiple sources of reserves helps reduce the burden on any single fund.
The total locked value of OUSG now exceeds 770 million dollars. It is one of the largest and most widely used tokenized fixed income products. Its appeal lies in its simple structure and ability to serve both crypto enthusiasts and institutional investors.
OUSG provides investors:
Daily income accrual
Low fees compared to many competing instruments
Reliable redemption processes
Access to multiple blockchains
With the introduction of SWEEP, the OUSG portfolio will include tokenized funds managed by some of the most recognized names in global finance. This foundation demonstrates the growing connection between traditional markets and on-chain environments.
Ondo Finance President Ian De Bode stated that tokenization is becoming the 'link' between traditional finance and on-chain markets. He also noted that the company's planned investments in SWEEP enhance OUSG's mission.
Tokenized liquidity funds represent a shift in how financial institutions manage short-term assets. In the past, automatic fund transfer products only worked through internal banking systems. They were limited by working hours and regional clearing structures.
For example, the standardized on-chain representation of exposure to U.S. Treasury bonds allows decentralized finance platforms to integrate instruments with secure yields into lending markets. This also enables corporate treasurers to manage fiat reserves using stablecoins without losing traditional liquidity functions.
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