State Street Investment Management and Galaxy Asset Management, a part of Galaxy Digital Inc. (GLXY), recently unveiled plans to launch the State Street Galaxy On-chain Liquidity Sweep Fund (SWEEP). That said, Ondo Finance will invest $200 million as seed funding to the mentioned tokenized private liquidity fund.
Notably, the said tokenized liquidity fund will unlock 24/7 on-chain liquidity via PayPal’s PYUSD stablecoin, if the fund’s portfolio allows.
Not all the investors will have access to SWEEP, said the official update, which is likely to be launched on the Solana blockchain in early 2026, with eyes on including Stellar and Ethereum blockchains afterward. That said, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is likely to be used in the SWEEP deployment.
Meanwhile, SWEEP will facilitate the market’s transition from Traditional Finance (TradFi) to Decentralized Finance (DeFi) by using State Street’s expertise in traditional cash and liquidity management, as well as Galaxy’s reliable blockchain infrastructure.
State Street Bank and Trust Company, part of the State Street Investment Management, will be the SWEEP’s custodian for treasury holdings.
It’s worth noting that State Street and Galaxy have a prior acquaintance in September 2024 when the former launched three ETFs sub-advised by Galaxy.
Elsewhere, Ondo’s heavy investment will tie the major tokenized Real-World Asset (RWA) issuer to State Street’s SWEEP.
“Innovation and partnership are at the heart of our ethos at State Street Investment Management and to that end we’re thrilled to deepen our relationship with Galaxy by bringing this groundbreaking product to market together,” said Kim Hochfeld, global head of cash and digital assets for State Street Investment Management.
Also, Steve Kurz, Global Head of asset management at Galaxy, mentioned:
We’re proud to be working with a longtime leader in cash management like State Street to make this innovative approach to digital assets a reality.
Meanwhile, Ian De Bode, President of Ondo Finance said:
Tokenization is rapidly becoming the connective tissue between traditional finance and the onchain economy, and SWEEP represents a major leap forward in that evolution
About Galaxy Digital
Galaxy Digital Inc. (GLXY on Nasdaq) is a digital assets and infrastructure provider with a headquarter in New York City. The firm caters to the market’s need for a digital asset platform and facilitates the modern-day transition from TradFi to DeFi.
About Ondo Finance
Ondo Finance offers blockchain technology and is major name in the DeFi universe with headquarter in New York City. The firm bridges TradFi with DeFi via tokenized RWAs and has recently gained popularity among the crypto community. That said, ONDO is the firm’s governance tool for its decentralized ecosystem.
About State Street Investment Management
State Street Investment Management is the asset management arm of State Street Corporation (NYSE: STT). The global fund management company has nearly $5.0 trillion Assets Under Management (AUMs) spread over 60+ countries.
Also read: Ondo Finance TVL Soars While Price Slides, What’s Next for ONDO?
