State Street and Galaxy Digital Launch 24/7 Tokenized Liquidity Fund on Solana

by

State Street and Galaxy Digital Unveil Tokenized Liquidity Fund

  • State Street and Galaxy Digital launched SWEEP, a tokenized fund enabling 24/7 on-chain cash management via stablecoin.
  • SWEEP runs on Solana and uses PayPal USD for transactions, with Stellar and Ethereum integrations planned for the future.
  • The fund builds on a partnership formed in 2024, when State Street launched three Galaxy-sub-advised digital asset ETFs.

State Street Investment Management and Galaxy Digital have partnered to create a new fund called the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP).

The fund is a tokenized private liquidity product enabling 24/7 on-chain cash management. 

It handles subscription and payout processes using stablecoins, depending on current investment options. This launch is a significant move towards integrating established financial systems with blockchain technology.

SWEEP Brings Stablecoin-Based Cash Management to Institutional Investors

As an analyst, I see this fund as a way for stablecoin holders to actually *earn* something on their holdings, instead of letting them sit unused. Specifically, it accepts PayPal USD (PYUSD) – you can use it to both join the fund and get your money back out when you need to.

Right now, it’s only for qualified investors who meet certain requirements and invest a minimum amount.

Galaxy’s technology provides the foundation for creating and managing the fund’s SWEEP tokens using blockchain technology. Anchorage securely holds the fund’s stablecoin investments.

As an analyst, I’m tracking that NAV Consulting is handling the fund’s transfer agency. Importantly, Galaxy is leveraging Chainlink’s NAVLink to make the fund’s daily net asset value publicly available on the blockchain.

Chainlink’s CCIP technology enables secure communication and data transfer between different blockchain networks for this product. State Street Bank and Trust Company is responsible for safely holding the fund’s investments.

I’m excited about this new fund – it started on the Solana blockchain, and they’re already planning to add support for Stellar and Ethereum. It seems like they’re building a really solid, professional platform for managing digital assets, which is exactly what the space needs.

Yie-Hsin Hung, CEO of State Street Investment Management, highlighted the firm’s history of leading change in the financial markets. She noted that State Street has been a pioneer for decades, starting with mutual funds and continuing with ETFs, and is now focused on driving innovation in the evolving digital asset landscape.

Galaxy and State Street Deepen a Growing Digital Asset Partnership

Mike Novogratz, head of Galaxy, recently pointed out that the lines between traditional finance and the crypto world are blurring, with both now starting to use the same underlying systems. He explained that this convergence, which many have predicted for years, is finally happening.

We see SWEEP as a practical solution, offering investors access to a fund managed by a seasoned cash manager directly on the blockchain, using infrastructure Galaxy designed for institutional investors.

Hung also explained that the fund demonstrates the company’s commitment to new ideas, careful risk control, and delivering positive results for clients. She explained that SWEEP effectively brings traditional finance practices to the blockchain in a secure and reliable manner.

She suggested we should carefully consider how to use digital assets in a way that looks ahead to the future.

State Street Investment Management and Galaxy Digital have been working together since September 2024. During that time, State Street launched three actively managed ETFs, with Galaxy providing investment advice. These ETFs specifically invest in digital assets and companies driving innovative technologies.

SWEEP expands on this existing groundwork by going beyond traditional ETF methods and utilizing blockchain-based fund management.

From my analysis, this product is designed with a dual focus. It’s aimed directly at users already heavily involved in decentralized finance – the ‘DeFi natives’ – but also acts as an entry point for more traditional financial institutions looking to explore the space. What’s interesting is that they’re attempting to reach both groups with one unified, automated system.

Read More

2026-05-06 16:06