State Street Investment Management and Galaxy Asset Management, an affiliate of Galaxy Digital Inc. (NASDAQ: GLXY) announced the forthcoming launch of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), which is described as a tokenized private liquidity fund that will aim to unlock the potential for 24/7 onchain liquidity by “utilizing PYUSD stablecoins for subscriptions and redemptions, subject to availability from the fund’s portfolio.”SWEEP will reportedly be offered to Qualified Purchasers th ...

Core Insights - State Street Investment Management and Galaxy Asset Management are launching the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP) on December 10, with a $200 million seed investment from Ondo Finance [1][2]. Group 1: Fund Overview - SWEEP will leverage State Street's expertise in cash and liquidity management alongside Galaxy Digital's knowledge in tokenization and digital infrastructure to provide an onchain cash management solution [2]. - The fund will utilize PayPal USD (PYUSD) stablecoins for subscriptions and redemptions, enabling 24/7 onchain liquidity [2]. Group 2: Technical and Operational Aspects - Galaxy plans to implement Chainlink for cross-chain interoperability, allowing SWEEP tokens to move across different blockchain networks [3]. - The fund is expected to launch on the Solana blockchain in early 2026 and aims to integrate with other networks such as Stellar and Ethereum [3]. Group 3: Industry Impact and Statements - Ondo Finance President Ian De Bode emphasized that tokenization is bridging traditional finance and the onchain economy, with SWEEP marking significant progress in this evolution [4]. - State Street's Kim Hochfeld noted that the partnership with Galaxy aims to advance the traditional finance landscape onchain [4]. - Galaxy's Steve Kurz described SWEEP as a transformative collaboration that will provide digital investors with a new onchain liquidity fund option [4].

Core Insights - State Street Investment Management and Galaxy Asset Management are launching the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized private liquidity fund utilizing PYUSD stablecoins for transactions, with an initial seeding of approximately $200 million from Ondo Finance [1][3][4] Group 1: Fund Overview - SWEEP will debut on the Solana blockchain in early 2026, with plans for future integrations on Stellar and Ethereum, leveraging Chainlink for cross-chain interoperability [2] - The fund aims to provide a liquid, onchain cash management solution, combining State Street's expertise in traditional liquidity management with Galaxy's blockchain capabilities [3][4] Group 2: Strategic Partnerships - The collaboration between State Street and Galaxy is positioned as a significant innovation in the asset management and capital markets landscape, merging traditional finance (TradFi) with decentralized finance (DeFi) [4] - Ondo Finance's investment is expected to anchor the fund and support its growth, highlighting the synergy between TradFi, DeFi, and tokenization [4] Group 3: Company Backgrounds - State Street Investment Management has nearly 50 years of experience, managing over $5 trillion in assets across more than 60 countries, focusing on delivering comprehensive investment solutions [5][6] - Galaxy Digital Inc. is recognized as a leader in digital assets and data center infrastructure, providing institutional access to various financial services and technologies [7]

State Street and Galaxy Asset Management plan to launch a tokenized liquidity fund in early 2026 that uses stablecoins for around-the-clock investor flows, expanding the use of public blockchains in institutional cash management, the companies announced Wednesday. The State Street Galaxy Onchain Liquidity Sweep Fund, or SWEEP, will accept subscriptions and redemptions in PYUSD, a stablecoin issued by Paxos, so long as the fund has assets on hand to process requests. Only Qualified Purchasers who meet set ...