State Street and Galaxy Launch SWEEP Tokenized Fund for 24/7 Onchain Cash Management

TLDR:

• State Street and Galaxy launched SWEEP, a tokenized fund for institutional onchain cash management running 24/7.
• SWEEP allows qualified investors to earn yield on stablecoins with continuous liquidity on blockchain infrastructure.
• The fund launches on Solana and will expand to Ethereum and Stellar, offering a flexible multi-chain approach.
• Access remains limited to institutional investors as firms continue building compliant blockchain financial frameworks.

State Street Investment Management and Galaxy Asset Management have launched the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP).

The fund gives qualified institutional investors a way to park stablecoins in a yield-generating vehicle. It operates continuously on blockchain infrastructure, unlike traditional money market funds.

The fund launches on Solana and will later expand to Ethereum and Stellar, marking a notable step in institutional blockchain adoption.

SWEEP Brings Round-the-Clock Liquidity to Institutional Investors

SWEEP allows large investors to move in and out of the fund at any time. Traditional money market funds operate only during market hours, creating gaps in cash management.

This new structure removes those restrictions by running on blockchain rails around the clock. Institutions can now earn yield on stablecoins without sacrificing access to their capital.

Galaxy provides the underlying tokenization system powering the fund. Anchorage Digital handles custody of the digital assets held within it.

State Street, meanwhile, oversees the traditional securities in the portfolio. This division of roles brings together established financial and crypto-native firms under one product.

The fund launches on Solana, with expansion to Ethereum and Stellar planned. Each blockchain offers different advantages in terms of speed, cost, and institutional infrastructure. The multi-chain approach broadens the fund’s potential reach across different investor preferences.

Stellar’s inclusion is particularly notable given its focus on asset tokenization and settlement. The announcement drew attention from the Stellar community, reinforcing the network’s growing role in institutional finance.

State Street manages more than $5 trillion in assets, giving SWEEP immediate institutional credibility. For Galaxy, the fund adds to its growing effort to connect crypto markets with traditional finance.

Tokenized Funds Gain Ground as Institutions Embrace Blockchain Infrastructure

The market for tokenized funds has grown rapidly over the past year. BlackRock’s BUIDL fund, which packages short-term U.S. Treasury exposure into a blockchain token, has attracted billions of dollars.

Franklin Templeton has also built similar products, each testing different blockchains and access models. SWEEP now joins this growing category of blockchain-based financial instruments.

Today, moving cash between accounts often involves delays, cut-off times, and intermediaries. Blockchain-based systems can allow money to move instantly, at any hour.

This removes friction that has long existed in institutional cash management. SWEEP is designed to take direct advantage of that capability.

Access to the fund remains limited to qualified institutional investors for now. This reflects the current stage of onchain finance, where large players lead adoption.

Retail access is not part of the current structure. Firms are still building and testing the compliance and operational frameworks needed at scale.

The two firms have collaborated on digital asset investment products since 2024. This launch represents a deeper extension of that working relationship.

Products like SWEEP suggest that the shift toward on-chain finance is accelerating. Institutional demand for tokenized instruments continues to grow alongside the infrastructure supporting them.

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