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- State Street and Galaxy launched SWEEP for qualified purchasers seeking on-chain cash tools.
- SWEEP will debut on Solana, with planned expansion to Stellar and Ethereum networks.
- Galaxy, Anchorage, Chainlink, and PayPal USD support SWEEP’s tokenized fund operations.
State Street and Galaxy launched SWEEP, a tokenized fund for qualified purchasers seeking on-chain cash management. The vehicle lets investors move stablecoins into a yield-bearing asset and supports round-the-clock access through blockchain-based settlement rails for cash operations on-chain across networks.
As per the report, the State Street Galaxy Onchain Liquidity Sweep Fund will debut on Solana. The partners plan expansions to Stellar and Ethereum.
SWEEP uses Galaxy’s tokenization infrastructure. Anchorage will serve as digital custodian. Chainlink will provide onchain NAV data and cross-chain messaging. The fund also supports subscriptions and redemptions with PayPal USD.
SWEEP Joins Growing Tokenized Fund Market
The product targets qualified purchasers that want a familiar investment structure on blockchain networks. It joins a group of crypto-linked funds that use on-chain rails while investing through established financial formats.
Ondo Finance had earlier said it would support the fund. That statement came when the product was announced in December. Ondo’s OUSG fund was expected to be the lead anchor investor, reportedly with $200 million. Ondo was not named in Tuesday’s release. The Block said it contacted Ondo for comment.
SWEEP is similar in form to BlackRock’s BUIDL and Franklin Templeton’s BENJI. Those funds invest in U.S. Treasurys and offer yield to investors. The comparison shows large asset managers linking traditional markets with digital-asset infrastructure.
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WisdomTree also moved deeper into this market last week. It incorporated its products in Stable Sea, a treasury management platform. The startup caters to small to mid-sized businesses. Its users are able to sweep cash into the flagship of WisdomTree, the tokenized money market fund.
State Street Expands Tokenized Finance Strategy
Yie-Hsin Hung, president and chief executive officer of State Street Investment Management, said the fund makes traditional finance onchain in a robust manner. She explained that the effort is undertaken after the company shifted its interests to innovation, risk management, and client outcomes.
State Street has already detailed expansive plans of tokenization. In the first half of this year, it announced that it would create tokenized versions of conventional funds and cash products. Those are on-chain money-market funds, exchange-traded funds, and tokenized deposits. The firm has $54.5 trillion in assets under custody or administration.
Another indicator of intentions to move is State Street, which announced last year its intention to enter the digital-asset custody sphere. In 2024, it introduced three actively managed Galaxy-subadvised funds in the form of ETFs. In the first quarter of 2026, Galaxy reported a net loss of 216 million, which was related to the reduced crypto prices.
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