State Street Investment Management and Galaxy Asset Management recently announced the launch of the State Street Galaxy Onchain Liquidity Sweep Fund, a tokenized private liquidity fund designed to enable 24.7 onchain cash management.
The fund would be made available through stablecoin. The launch, officials said, represents a milestone in State Street’s digital strategy to offer investment solutions onchain and support 24/7 programmatic trading and liquidity. The company said it continues to invest in foundational digital asset capabilities across investment management and custody, and will continue to offer onchain investment solutions to De-Fi native clients and those acting as a bridge to traditional institutional clients looking to move onchain
SWEEP is powered by Galaxy’s Digital Infrastructure, which will provide the tokenization technology and digital infrastructure to support issuing and managing SWEEP tokens. The fund, officials said, will allow stablecoin holders to sweep their stablecoin into a yield bearing asset. SWEEP launches on the Solana blockchain, with additional blockchain integrations planned, including Stellar and Ethereum. Anchorage will serve as the funds digital custodian, while NAV Consulting will serve as the transfer agent, and Galaxy leverages Chainlink NavLink to publish the fund’s daily NAV onchain and Chainlink CCIP for secure cross-chain interoperability. State Street Bank and Trust Company will serve as the fund’s custodian for securities holdings.
“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,” Yie-Hsin Hung, president and chief executive officer of State Street Investment Management, said. “This fund allows us to bring the TradFi landscape onchain in a resilient way, guided by our long-standing focus on innovation, risk management and client outcomes.”
SWEEP will allow investors to use PayPal USD stablecoins for subscriptions and redemptions, and is available to Qualified Purchasers that meet certain eligibility criteria and minimum investment amounts.
“For years we’ve argued that traditional finance and crypto would converge on the same rails,” Mike Novogratz, founder and CEO of Galaxy, said. “We believe SWEEP is what that looks like in practice, with a fund managed by an experienced cash manager being available for investors onchain, on infrastructure Galaxy built for institutions.”