State Street and Galaxy to Debut Tokenized Liquidity Fund Using Stablecoins in 2026

State Street and Galaxy Asset Management are preparing to launch a tokenized liquidity fund in early 2026, signaling another major step in bringing institutional cash management onto public blockchains. The new product, called the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), is designed to provide around-the-clock liquidity for institutional investors by using stablecoins to streamline subscription and redemption flows.

SWEEP will accept transactions in PYUSD, PayPal’s U.S. dollar–backed stablecoin, as long as the fund maintains sufficient assets to process requests. Access will be limited to Qualified Purchasers who meet strict regulatory thresholds, underscoring the fund’s institutional focus. Ondo Finance has already committed approximately $200 million to seed the initiative, emphasizing confidence in the growing overlap between traditional finance and the blockchain economy.

According to the announcement, the fund is expected to launch on the Solana blockchain, with Stellar and Ethereum integrations planned for future phases. Galaxy intends to leverage Chainlink’s cross-chain technologies to securely transmit data and assets across networks, helping SWEEP operate efficiently in a multi-chain environment.

State Street’s global head of cash and digital assets, Kim Hochfeld, noted that the collaboration represents a meaningful shift in how traditional financial institutions and digital-asset firms work together, emphasizing that the partnership aims to accelerate on-chain innovation. Ondo Finance President Ian De Bode echoed this sentiment, highlighting tokenization as a rapidly expanding bridge between conventional markets and emerging blockchain ecosystems.

The introduction of SWEEP builds on existing joint efforts between State Street and Galaxy, including a suite of digital-asset ETFs launched in 2024. As demand for tokenized real-world assets climbs, the fund positions both companies at the forefront of the evolving on-chain liquidity landscape, offering institutions new tools to manage cash-like assets without sacrificing the liquidity profiles they expect from traditional sweep products.