Galaxy and State Street Launch Solana-Based SWEEP Tokenized Cash Fund

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Galaxy and State Street launch Solana-based SWEEP tokenized cash fund

U.S. stocks started the day higher on Tuesday, with key market indexes showing gains. Companies involved in artificial intelligence, particularly those in the storage sector, performed especially well. However, PayPal’s stock price dropped around 10% after the company lowered its profit expectations.

Summary

  • Galaxy Digital and State Street Investment Management have launched the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized cash management product aimed at delivering 24/7 on-chain liquidity.
  • The fund lets institutional investors subscribe and redeem using stablecoins while earning yield on underlying traditional securities, initially on Solana with plans to expand to Ethereum and Stellar.
  • Galaxy provides tokenization infrastructure, Anchorage Digital handles digital asset custody, and State Street manages the off-chain portfolio, extending the institutional trend set by BlackRock’s BUIDL tokenized Treasury fund.

State Street and Galaxy Digital have launched SWEEP, a new fund that uses blockchain technology to bring traditional cash and liquidity management services onto public blockchains, as reported by CoinDesk.

SWEEP brings cash management on-chain via Solana

State Street will manage the investments themselves – primarily short-term, high-quality bonds, similar to those found in money market funds. Meanwhile, Galaxy will use its technology to create and manage digital versions of fund shares on the Solana blockchain.

Investors can use PayPal USD (PYUSD) to easily buy into and withdraw money from the fund at any time, as long as there’s enough available in the portfolio. This eliminates the limitations of traditional banking and market hours.

The product is launching with an initial investment of around $200 million from Ondo Finance. Their OUSG fund, which represents tokenized Treasury holdings, will use the product to expand its investments and gain more flexibility in managing its funds on the blockchain.

State Street will handle the safekeeping of the fund’s standard investments, and Anchorage Digital will securely store the digital assets. Together, they create a complete connection between traditional investments and their digital equivalents.

Part of a broader tokenized cash and Treasury boom

SWEEP first launched on Solana because of its speed and affordability. The company intends to expand to Ethereum and Stellar in the future, allowing clients to use the platform on the blockchains they already use.

According to Galaxy and State Street on LinkedIn, this fund aims to make it easier to trade digital assets around the clock by providing institutions with a token that functions like cash. This token can be directly integrated into smart contracts, decentralized finance (DeFi) applications, and systems for settling transactions on the blockchain.

As an analyst, I’ve been following BlackRock’s move into tokenized Treasury funds closely. Building on the success of their BUIDL token on Ethereum, they’re now offering a way to invest in U.S. Treasury bills and repurchase agreements directly through a digital token. Each BUIDL token represents a $1 share in this portfolio, and currently offers an annual yield of around 4.75% to 5.25%. What’s particularly interesting is that, being an ERC-20 token, it’s fully programmable, opening up possibilities beyond traditional Treasury investments.

Industry experts have observed that tokenized Treasury products reached over $7 billion in value in early 2026. Companies like BlackRock, Franklin Templeton, and Ondo Finance are leading this growth, as institutions seek to earn returns from very safe investments within their digital portfolios.

According to a recent report from crypto.news, SWEEP is taking the trend of tokenizing traditional financial assets a step further. Instead of simply turning Treasury bonds into tokens, it tokenizes the entire process of managing cash. This allows big investors to automatically move unused stablecoins into a liquidity fund managed by State Street, all without ever needing to leave the blockchain.

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2026-05-05 18:13