State Street, Galaxy Launch SWEEP Fund on Solana

State Street and Galaxy launched the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP) on Tuesday on the Solana blockchain. Qualified purchasers can sweep stablecoins into a tokenized, yield-bearing fund that accepts PayPal USD for subscriptions and redemptions, and is intended for 24/7 onchain cash management.

The fund uses Galaxy’s tokenization infrastructure, Anchorage as digital custodian and Chainlink to provide an onchain net asset value and support cross-chain messaging. Investors can move stablecoins into the fund and redeem them at any time. PayPal USD serves as a fiat on- and off-ramp for subscriptions and redemptions.

SWEEP will launch initially on Solana with plans to expand to Stellar and Ethereum. The product targets qualified purchasers and is structured to place short-duration cash instruments into a tokenized wrapper to generate yield.

In December, Ondo Finance indicated it would support the SWEEP launch and that its OUSG fund would act as the lead anchor investor with a reported commitment of about $200 million; Ondo is not named in the Tuesday announcement.

Yie-Hsin Hung, president and chief executive officer of State Street Investment Management, described the fund as “allowing us to bring the TradFi landscape onchain in a resilient way, guided by our long-standing focus on innovation, risk management and client outcomes.” The firm has previously said it is developing tokenized versions of traditional funds and cash products.

State Street reports $54.5 trillion in assets under custody or administration. Galaxy has expanded its asset-management operations in recent years; the firm reported a $216 million net loss in the first quarter of 2026, which it attributed to falling crypto prices and costs tied to its HELIOS data center buildout. Galaxy received regulatory approval last month to reincorporate in Delaware from the Cayman Islands, a change expected to finalize in mid-May.

SWEEP joins a growing set of tokenized cash-management products from large asset managers that use blockchain rails to offer onchain access to short-duration instruments and Treasury holdings. The fund combines institutional custody, onchain pricing feeds and cross-chain tools to facilitate liquidity and settlement for qualified investors.