State Street, Galaxy, and Ondo Finance Unveil 2026 Tokenized Liquidity Fund on Solana

TLDR:

• SWEEP will use PYUSD on Solana to enable continuous institutional liquidity flows for Qualified Purchasers.
• Ondo Finance will seed the tokenized fund with $200M, expanding access to real-time onchain liquidity tools.
• The fund targets multi-chain expansion to Stellar and Ethereum, supported by Chainlink cross-chain solutions.
• OUSG will anchor SWEEP, strengthening Ondo’s multi-chain tokenized Treasury ecosystem for institutional users.

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State Street and Galaxy Asset Management are preparing to introduce a tokenized liquidity fund built for institutional cash management on public blockchains. 

The initiative, scheduled for early 2026, marks a new phase in the ongoing shift toward blockchain-based financial infrastructure. The product, called the State Street Galaxy Onchain Liquidity Sweep Fund, or SWEEP, will use PYUSD to support continuous investor flows onchain.

The firms confirmed that the fund will initially launch on Solana before expanding to Stellar and Ethereum as part of its multi-chain strategy. 

Only Qualified Purchasers will gain access to SWEEP, and subscriptions or redemptions will proceed as long as sufficient assets remain available. 

Ondo Finance has committed about $200 million to seed the fund, reinforcing the growing link between tokenized assets and institutional liquidity management.

Early 2026 Launch Sets Stage for Onchain Cash Management

SWEEP is designed to give institutions the ability to hold cash-like assets onchain while maintaining the liquidity profile associated with traditional sweep products. 

State Street noted that the effort represents a new phase in collaboration between established financial institutions and digital-asset firms. Kim Hochfeld, head of cash and digital assets at State Street, stated that the partnership with Galaxy reflects evolving practices in the sector as banks and crypto firms continue to coordinate on infrastructure development.

Galaxy intends to integrate Chainlink tools to facilitate data movement and cross-chain asset operations once the product extends beyond Solana. 

The architecture aims to support continuous investor flows for clients seeking round-the-clock access to stablecoin-based liquidity. The launch also builds on prior work between the firms, including digital-asset ETFs introduced in 2024.

Ondo Finance’s involvement adds further depth to the initiative. The company plans to use its flagship tokenized fund, OUSG, as the anchor investor for SWEEP. 

OUSG maintains a diversified portfolio of institutional tokenized U.S. Treasury funds and aggregates 24/7 stablecoin liquidity across those assets. This structure allows OUSG holders to access liquidity through multiple channels, supported by the Ondo Nexus framework.

Ondo Finance Expands Role in Tokenized Liquidity

Ondo Finance stated that its participation in SWEEP aligns with its broader mission to expand real-world asset tokenization. 

OUSG, which now has more than $770 million in total value locked, already offers instant subscriptions and redemptions, daily interest accruals, and multi-chain support across several networks. 

The plan to allocate funds into SWEEP will widen its exposure to institutional-grade products from leading asset managers.

The initiative places SWEEP alongside a growing roster of tokenized funds accessed through OUSG. 

These include BlackRock’s BUIDL, Fidelity’s FDIT, Franklin Templeton’s BENJI, WisdomTree’s WTGXX, and ULTRA from Wellington Management and FundBridge Capital. This expanded reach is intended to strengthen the liquidity pathways available to investors in the OUSG ecosystem.

Ondo noted on social media that SWEEP is targeting a launch on Solana in early 2026, reaffirming the network’s role as a preferred environment for real-time settlement. 

The company emphasized the value of continuous liquidity for its investors and the role that multi-chain access plays in supporting this model. The collaboration with State Street and Galaxy deepens its strategy of linking traditional financial products with onchain infrastructure.

As development progresses, the partners aim to extend the product to Stellar and Ethereum after the initial rollout. 

The combination of State Street’s institutional reach, Galaxy’s digital-asset management capabilities, and Ondo Finance’s tokenization framework sets the stage for broader adoption of onchain cash-management products within the institutional market.

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