State Street and Galaxy to Launch Tokenized Liquidity Fund on Solana in 2026

Core Viewpoint - State Street and Galaxy Asset Management are set to launch a tokenized liquidity fund named SWEEP in early 2026, utilizing stablecoins to enhance institutional cash management through public blockchains [1][2]. Group 1: Fund Details - The SWEEP fund will accept subscriptions and redemptions in PYUSD, a stablecoin issued by Paxos, contingent on having sufficient assets to process requests [2]. - Only Qualified Purchasers who meet specific thresholds will be eligible to access the fund, with Ondo Finance committing approximately $200 million to seed the product [2]. Group 2: Technological Framework - The fund is expected to launch on the Solana blockchain, with plans to incorporate Stellar and Ethereum subsequently [3]. - Galaxy Asset Management intends to utilize Chainlink tools for data and asset movement across different blockchains [3]. Group 3: Industry Collaboration - Kim Hochfeld, global head of cash and digital assets at State Street, emphasized the collaboration with Galaxy as a significant step in the evolving relationship between traditional banks and crypto firms [4]. - Ondo Finance President Ian De Bode highlighted the convergence of traditional and crypto markets through their investment in the SWEEP fund [4]. Group 4: Market Implications - The tokenization represented by SWEEP is seen as a critical advancement in bridging traditional finance with the onchain economy [5]. - This initiative builds on previous collaborations between the firms, including a series of digital-asset ETFs launched in 2024 [5].