State Street Launches Onchain Liquidity Fund SWEEP

State Street Investment Management partners with Galaxy Asset Management, an affiliate of Galaxy Digital Inc., and launches the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized private liquidity fund designed to support 24/7 onchain cash management through stablecoins, subject to portfolio availability. The move marks a significant step as traditional finance continues to integrate with blockchain-based infrastructure, while institutions seek more flexible liquidity solutions. 

Moreover, the launch highlights State Street’s broader digital strategy, as the firm actively expands its presence in tokenized investment products and decentralized finance. By leveraging blockchain technology, the fund enables programmatic trading and continuous liquidity, which, in turn, enhances efficiency compared to traditional market hours. At the same time, the initiative reinforces State Street’s role as a bridge between institutional investors and emerging digital ecosystems. SWEEP operates using Galaxy’s digital infrastructure, which powers token issuance and fund management. 

State Street Launches Onchain Liquidity Fund SWEEP

In addition, the fund allows stablecoin holders to convert idle assets into yield-bearing instruments, thereby creating new opportunities for capital efficiency. Initially, the fund launches on the Solana blockchain, while further integrations with Stellar and Ethereum are already planned, ensuring broader accessibility across networks. Meanwhile, several key service providers support the fund’s ecosystem. Anchorage Digital acts as the digital custodian for stablecoin holdings, while NAV Consulting serves as the transfer agent. Furthermore, Galaxy integrates Chainlink NAVLink to publish daily net asset value onchain and Chainlink CCIP to enable secure cross-chain functionality. 

At the same time, State Street Bank and Trust Company oversees custody of traditional securities within the fund. Importantly, SWEEP allows eligible investors to subscribe and redeem using PayPal USD, although participation remains limited to qualified purchasers who meet specific requirements. This structure ensures regulatory alignment while still providing access to innovative financial tools. “State Street has played a leading role in market innovation for decades, from servicing mutual funds to launching ETFs, and we’re proud to continue that role as digital assets reshape market infrastructure,” said Yie-Hsin Hung. 

She added, “This fund allows us to bring the TradFi landscape onchain in a resilient way, guided by our long-standing focus on innovation, risk management, and client outcomes.” “For years we’ve argued that traditional finance and crypto would converge on the same rails,” said Mike Novogratz. He noted, “We believe SWEEP is what that looks like in practice, with a fund managed by an experienced cash manager being available for investors on-chain, on infrastructure Galaxy built for institutions.” Finally, the launch further strengthens the collaboration between State Street and Galaxy, building on earlier initiatives such as actively managed ETFs introduced in 2024, which focused on digital assets and disruptive technologies.

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