- State Street and Galaxy Digital launched SWEEP, a tokenized fund enabling 24/7 on-chain cash management via stablecoin.
- SWEEP runs on Solana and uses PayPal USD for transactions, with Stellar and Ethereum integrations planned for the future.
- The fund builds on a partnership formed in 2024, when State Street launched three Galaxy-sub-advised digital asset ETFs.
State Street Investment Management and Galaxy Digital have jointly launched the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP).
The fund is a tokenized private liquidity product enabling 24/7 on-chain cash management.
It uses stablecoins for subscriptions and redemptions, subject to portfolio availability. The launch marks a major step in bringing traditional finance infrastructure onto blockchain rails.
SWEEP Brings Stablecoin-Based Cash Management to Institutional Investors
The fund is built to allow stablecoin holders to move idle assets into a yield-bearing product. SWEEP accepts PayPal USD (PYUSD) for both subscriptions and redemptions.
It is currently available only to Qualified Purchasers meeting specific eligibility and minimum investment criteria.
Galaxy’s Digital Infrastructure powers the tokenization technology behind the fund. It supports the issuance and ongoing management of SWEEP tokens on the blockchain. Anchorage serves as the fund’s digital custodian for stablecoin investments.
NAV Consulting acts as the fund’s transfer agent. Galaxy is using Chainlink NAVLink to publish the fund’s daily net asset value on-chain.
Chainlink CCIP supports secure cross-chain interoperability for the product. State Street Bank and Trust Company serves as custodian for the fund’s securities holdings.
The fund launched on the Solana blockchain, with Stellar and Ethereum integrations planned. This layered infrastructure reflects a deliberate approach to institutional-grade digital asset management.
Yie-Hsin Hung, President and CEO of State Street Investment Management, spoke to the firm’s long-standing role as a market innovator. “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,” she said.
Galaxy and State Street Deepen a Growing Digital Asset Partnership
Mike Novogratz, founder and CEO of Galaxy, noted that traditional finance and crypto converging on shared rails is now a reality. “For years we’ve argued that traditional finance and crypto would converge on the same rails,” Novogratz said.
“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.”
Hung further noted that the fund reflects the firm’s focus on innovation, risk management, and client outcomes. She described SWEEP as bringing the TradFi landscape on-chain in a resilient way.
Her comments implied that there should be a thoughtful yet future-oriented approach toward the use of digital assets.
Both companies have collaborated since September 2024. In this period, State Street Investment Management has introduced three active ETFs with Galaxy as its sub-adviser. Those ETFs focused on digital assets and disruptive technologies.
SWEEP builds directly on that foundation by moving beyond ETF structures into on-chain fund infrastructure.
The product targets DeFi-native clients while also serving as a bridge for traditional institutions. It reflects a calculated effort to serve both audiences through a single, programmatic solution.
