State Street and Galaxy Introduce Onchain Liquidity Sweep Fund

State Street and Galaxy Partner to Drive On-Chain Cash Management

(Source: StateStreet)

State Street and Galaxy Asset Management announced Wednesday that they will launch SWEEP, an on-chain liquidity fund designed for institutional investors, in 2026. This partnership further accelerates the integration of public blockchains into traditional financial operations, with a strong focus on enabling on-chain management of cash-equivalent assets.

PYUSD as the Medium for Fund Subscriptions and Redemptions

One of SWEEP’s core features allows investors to subscribe and redeem using PYUSD, the stablecoin issued by Paxos. As long as the fund holds available assets, it can process investor transactions instantly, delivering a liquidity experience that closely mirrors traditional sweep products.

Access to the fund is restricted to Qualified Purchasers who meet specific criteria. Ondo Finance has also committed approximately $200 million as seed capital, strengthening the fund’s initial liquidity.

Cross-Chain Deployment

From a technical standpoint, the fund will debut on Solana, with subsequent support for Stellar (XLM) and Ethereum (ETH). Galaxy will integrate Chainlink’s cross-chain tools to synchronize assets and data, ensuring consistent operations across multiple blockchains and enhancing the reliability of cross-chain liquidity management.

Purpose-Built for Institutions Seeking On-Chain Cash Management

SWEEP is specifically designed to let institutions hold cash-like assets on-chain while maintaining the high liquidity standards of traditional cash management. Kim Hochfeld, Head of Digital Assets and Cash Management at State Street, noted that this collaboration marks a new era in the relationship between traditional finance and the crypto industry, with both sectors driving significant on-chain transformation together.

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Summary

The launch of SWEEP marks the entry of institutional cash management into the public blockchain ecosystem. With PYUSD, cross-chain architecture, and 24/7 liquidity, State Street and Galaxy are not simply releasing a new product—they are spearheading a foundational shift in asset management. On-chain cash management could soon become the institutional norm, and SWEEP is at the forefront of this transformation.