State Street, Galaxy Join $200M Push to Build 24/7 Tokenized Cash System
State Street Investment Management and Galaxy Asset Management are partnering with Ondo Finance to launch a tokenized liquidity...
Quick overview
- State Street Investment Management and Galaxy Asset Management are collaborating with Ondo Finance to launch the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), aimed at converting institutional cash into onchain liquidity using PayPal's PYUSD stablecoin.
- Ondo will provide $200 million in initial capital, while State Street Bank and Trust Company will act as custodian, integrating traditional regulatory oversight with blockchain technology.
- The fund is set to launch on Solana in early 2026, with plans to expand to Stellar and Ethereum, leveraging Chainlink's cross-chain protocol.
- This initiative reflects a growing trend among asset managers to define 'onchain cash' and enhance institutional cash mobility, settlement speed, and access to global markets.
State Street Investment Management and Galaxy Asset Management are partnering with Ondo Finance to launch a tokenized liquidity vehicle designed to move institutional cash directly onto public blockchains. The initiative, known as the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), aims to convert accredited-investor balances into real-time, onchain liquidity using PayPal’s PYUSD stablecoin.
Ondo plans to provide $200 million in initial capital—a significant commitment that links one of the largest real-world asset (RWA) tokenization firms directly to State Street’s growing digital-asset architecture. Galaxy will supply the tokenization and infrastructure layer, while State Street Bank and Trust Company will serve as custodian, bringing traditional regulatory oversight into the onchain environment.
The fund is scheduled to launch on Solana in early 2026, with expansions to Stellar and Ethereum using Chainlink’s CCIP cross-chain protocol.
Institutions Race to Define ‘Onchain Cash’
The announcement adds another major player to a fast-moving competition among global asset managers. BlackRock and Franklin Templeton already operate tokenized cash-management funds on public blockchains, while Ondo has carved out a niche wrapping U.S. Treasuries and credit exposures into onchain investment products.
📢 𝐉𝐔𝐒𝐓 𝐈𝐍: 📢 𝐉𝐔𝐒𝐓 𝐈𝐍: State Street & Galaxy Launch $200M Tokenized Liquidity Fund, SWEEP – $STT $GLXY
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— Hardik Shah (@AIStockSavvy) December 11, 2025
State Street views the partnership as a strategic step toward bridging traditional finance and real-time blockchain markets.
Kim Hochfeld, the firm’s global head of cash and digital assets, called the collaboration an effort to “push the envelope” of institutional tokenization.
Ian De Bode, president of Ondo Finance, said the planned investment would strengthen both SWEEP and Ondo’s existing fund structure, which already offers 24/7 minting and redemption for short-term Treasuries.
Institutional priorities driving the shift include:
- Faster settlement and cash mobility
- Transparent asset reporting
- Automated liquidity management
- Access to global markets outside banking hours
Together, these features position tokenized cash as a potential backbone of next-generation capital markets.
Solana Gains Ground in Tokenization Infrastructure
The decision to launch SWEEP on Solana underscores the chain’s rising status as a preferred venue for high-throughput tokenization. Solana has attracted large institutions by offering low fees, fast confirmation times, and growing ecosystems for stablecoins and RWAs.
Major enterprises already active on Solana include Western Union—processing more than $100 billion in annual remittances—and Pfizer, which handles $2 trillion in merchant payment volume each year. Tokenized ETFs on Solana have also climbed toward $1 billion in AUM, reinforcing the chain’s role in institutional experimentation.
As the fund expands to Stellar and Ethereum, SWEEP will tap into multiple blockchain ecosystems where stablecoins and tokenized assets are already integrated into core market infrastructure.
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