State Street, Galaxy and Ondo join tokenized cash race with 24/7 sweep fund
State Street, Galaxy, and Ondo are launching the SWEEP fund to provide 24/7 onchain liquidity using tokenized cash.Summary
State Street Investment Management, Galaxy Asset Management, and Ondo Finance are collaborating on the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), designed to move cash balances directly onto public blockchains for accredited investors using PayPal's stablecoin.
Ondo is expected to seed the fund with $200 million, leveraging Galaxy Digital's infrastructure, with State Street Bank and Trust Company serving as custodian. The fund is scheduled to launch on Solana in early 2026, with future rollouts planned for Stellar and Ethereum via Chainlink's CCIP.
This move intensifies the competition in defining institutional onchain cash, joining players like BlackRock and Franklin Templeton. The partnership showcases a division of labor: State Street provides regulatory oversight and custody, Galaxy offers digital-asset infrastructure, and Ondo contributes capital and an existing Real-World Asset (RWA) distribution network. Solana was chosen as the initial venue due to its popularity for tokenized assets, low fees, and fast settlement.
(Source：Cointelegraph)