State Street and Galaxy Merge TradFi + Crypto With New PYUSD Onchain SWEEP Fund

“By integrating PYUSD on Solana, we’re giving institutions real-time liquidity that legacy systems simply can’t match.”

State Street and Galaxy Asset Management announced the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), which will open in early 2026, marking a significant step forward in institutional blockchain use. 

The new tokenised liquidity fund gives institutions quicker, more transparent, and round-the-clock access to liquidity by bringing conventional cash-management capabilities right onto public blockchains.

As long as assets are available, SWEEP, which is intended for Qualified Purchasers, will permit subscriptions and redemptions in PYUSD, the stablecoin produced by Paxos, allowing investors to move in and out of the fund immediately. 

Ondo Finance has made a substantial commitment to support the project, pledging around $200 million to seed the product, indicating high trust in the onchain institutional liquidity market.

SWEEP, which is based on Solana, seeks to provide smooth, round-the-clock investor flows by fusing the rapidity of cryptocurrency with the stability of conventional finance. 

According to State Street and Galaxy, the solution marks a turning point for tokenisation and blockchain-based cash management by enabling institutions to keep cash-like assets onchain without compromising liquidity.

According to Kim Hochfeld, State Street’s Global Head of Cash and Digital Assets, the partnership heralds a new era of financial innovation. “We will push the envelope together and drive the evolution of the TradFi landscape onchain by partnering with Galaxy,” she said.

SWEEP is the next stage in integrating digital rails with legacy markets, according to Ian De Bode, President of Ondo Finance. He stated that tokenisation is quickly emerging as the link between traditional finance and the onchain economy.

State Street and Galaxy are putting themselves at the vanguard of onchain institutional finance via SWEEP, hastening the transition to tokenised assets and real-time liquidity.

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