State Street, Galaxy, and Ondo Enter the Tokenized Cash Race with a 24/7 Sweep Fund Launch
State Street Investment Management and Galaxy Asset Management have joined forces with Ondo Finance to the State Street Galaxy Onchain Liquidity Sweep Fund, or SWEEP for short.
This new tokenised private fund aims to provide institutional clients with on-chain liquidity 24/7, enabling them to easily convert funds into PayPal’s PYUSD stablecoin for subscriptions and redemptions.
SWEEP is a bold combination of custodial services, , and blockchain tokenisation, but only qualified purchaviewrs who meet tight eligibility and minimum investment conditions can use it.
Ondo Finance is making a significant $200 million initial investment, which strengthens its position as a top real-world asset tokeniser. State Street Bank and Trust Company is responsible for the underlying treasury holdings and ensures strong regulatory oversight.
Galaxy provides the basic blockchain technology that enables the issuance and use of SWEEP tokens on public networks like . Plans are to expand to Stellar and ETH in the future via Chainlink compatibility.
The fund changes how institutions handle cash by giving them access to yield-bearing cash that was previously unavailable with existing systems.
It will launch in ahead 2026 and is aimed at DeFi users who need quick access to liquidity without the restrictions of traditional banks. This alliance leverages the strengths of each company: State Street’s currency expertise, capabilities, and Ondo’s leadership in tokenisation.
Leaders Point Out the Potential for Change
Steve Kurz, Galaxy’s worldwide head of asset management, welcomed the venture’s impact. Kurz said, “SWEEP is a game-changing collaboration that will give digital investors an on-chain liquidity fund option, changing the way institutional investors keep cash and run their businesses.”
Ian De Bode, president of , talked about the largeger picture. De Bode said, “Tokenisation is rapidly becoming the link between traditional finance and the onchain economy, and SWEEP is a large step forward in that process.” He said that viewd money immediately boosts Ondo’s OUSG fund, enabling 24/7 minting and redemptions to assist TradFi grow in DeFi.
Kim Hochfeld, who is in charge of cash and at State Street, agreed with this excitement. The effort pushes the limits of tokenisation by combining strict compliance with the speed and openness of blockchain for better efficiency.
Increasing Market Momentum and Liquidity
SWEEP assists Ondo’s OUSG tokenised US Treasuries fund by spreading out its reserves and ensuring liquidity is always available.
It puts these businesses at the head of the pack in the tokenised cash space, where institutions increasingly want smooth, steady flows of money. People who watch the market view this as a plan for custodians, tokenisers, and managers to work together.
By using , the fund avoids volatility and gains operational flexibility. This aligns with the growing interest in tokenised assets, which provide accredited investors with secure, high-yield on-chain cash equivalents.
The development shows that and blockchain are converging quicker, potentially changing how liquidity flows around the world. As competitors watch closely, SWEEP could encourage more institutions to get involved in DeFi, prioritising both stability and innovation.
