- SWEEP gives institutions 24/7 liquidity and cash-like tokens on Solana rails.
- PYUSD enables fast redemptions while Ondo seeds the fund with $200 million.
- Chainlink tools power cross-chain work as tokenization gains more adoption.
State Street and Galaxy Asset Management are preparing to launch a tokenized liquidity product on Solana in early 2026, marking one of the most significant institutional moves yet toward on-chain cash management. The firms announced on Wednesday that the vehicle, called the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), will give qualified investors the ability to manage cash-like assets with around-the-clock blockchain settlement.
State Street and Galaxy Plan 2026 Tokenized Fund on Solana (Source: Jinse Finance)
The initiative builds on rising institutional interest in tokenization and comes as regulated entities expand their use of stablecoins and public blockchain networks for operational efficiency.
SWEEP: A Blockchain-Based Liquidity Fund With 24/7 Flows
According to a CoinDesk report, SWEEP is being designed as a tokenized liquidity fund where ownership is represented by blockchain tokens rather than traditional fund shares. State Street and Galaxy said the structure enables real-time settlement, faster movement of capital, and continuous investor flows, benefits largely unavailable in conventional sweep products that operate only during business hours.
Per the reports, the fund will accept subscriptions and redemptions in PYUSD, the PayPal-issued stablecoin, provided assets are available to meet requests. However, access will be limited to qualified purchasers who meet regulatory thresholds. Following the report, Ondo Finance committed approximately $200 million to seed the fund, giving it significant initial scale and signaling demand within the growing tokenized-assets market.
Why Solana, PYUSD, and Chainlink Tools Will Anchor the System
State Street and Galaxy expect to issue SWEEP first on Solana (SOL), priced at $136.36 at the time of the announcement, before expanding to Stellar (XLM) and Ethereum (ETH). The firms cited Solana’s high throughput and low transaction fees, features seen as necessary for a product intended for frequent liquidity operations and institutional-grade settlement.
Notably, using PYUSD, a regulated dollar-backed stablecoin, allows the fund to minimize volatility and align with institutional compliance expectations. PYUSD provides a predictable, fiat-referenced settlement medium, which State Street and Galaxy said reduces friction for investors moving from traditional rails into blockchain-based infrastructure.
Besides, Chainlink tools will support cross-chain messaging and data transfer between Solana, Stellar, and Ethereum as the fund expands. Galaxy noted that the system will rely on Chainlink interoperability technology to ensure accurate data movement and asset interactions across networks.
Institutions Signal Confidence as Tokenization Momentum Accelerates
Kim Hochfeld, State Street’s global head of cash and digital assets, said the launch illustrates a shift in how banks and blockchain firms operate together.
“By partnering with Galaxy, we will push the envelope together and drive the evolution of the TradFi landscape on-chain,” Hochfeld said.
Galaxy and State Street have collaborated before, including on digital-asset exchange-traded products introduced in 2024. The firms said SWEEP is designed specifically for institutions seeking cash-like instruments that retain traditional liquidity characteristics while operating on public chains.
Ondo Finance President Ian De Bode said the $200 million commitment reflects confidence in the convergence of crypto and traditional financial markets.
“Tokenization is rapidly becoming the connective tissue between traditional finance and the on-chain economy, and SWEEP represents a major leap forward in that evolution,” he said.
A Broader Shift Toward Institutional On-Chain Cash Management
SWEEP enters the market as major financial firms accelerate work on tokenized treasuries, stablecoin infrastructure, and blockchain-based settlement rails. Analysts have observed a steady rise in experiments involving on-chain funds, RWA products, and stablecoin-based payment flows, reinforcing the view that tokenization is becoming a central part of capital markets modernization.
State Street and Galaxy said the product could allow investors to move liquidity continuously, with settlement speeds of minutes or seconds depending on network conditions. The structure aims to replicate the operational profile of traditional sweep funds while leveraging blockchain for efficiency, transparency, and broader reach.
By combining a regulated stablecoin, a high-performance blockchain, institutional-grade asset management, and cross-chain tools, SWEEP is positioned as one of the earliest full-scale attempts to place cash-management functions directly onto public blockchain rails.
