State Street, Galaxy And Ondo Join Tokenized Cash Race With 24/7...

State Street Investment Management and Galaxy Asset Management are launching a tokenized private liquidity fund on Solana, with Ondo expected to invest $200 million.

State Street Investment Management and Galaxy Asset Management are joining forces with Ondo Finance on a tokenized liquidity fund that will push cash “sweep” balances directly onto public blockchains, creating a potential source of 24/7 onchain liquidity.

The planned State Street Galaxy Onchain Liquidity Sweep Fund, or SWEEP, is designed to take in and pay out PayPal’s (PYUSD) stablecoin for accredited investors, the companies said on Tuesday.

Ondo is expected to seed the fund with $200 million, tying a major tokenized real-world asset (RWA) issuer directly into State Street’s tokenization stack. The fund will be powered by Galaxy Digital infrastructure, while State Street Bank and Trust Company, an affiliate of State Street Investment Management, will act as custodian.

SWEEP is set to launch on Solana in early 2026, with rollouts on other networks, including Stellar and Ethereum, to follow, using Chainlink’s Cross-Chain Interoperability Protocol (CCIP).

Related: Solana and Coinbase’s Base connect together using Chainlink

The move drops another heavyweight into an increasingly crowded race to define what “onchain cash” looks like for institutions. BlackRock and Franklin Templeton already run tokenized cash‑management vehicles, including money‑market and other short‑term fixed‑income funds, on public blockchains. For its part, Ondo has built a business around wrapping Treasurys and other credit exposures into onchain vehicles that can plug into crypto markets.

“By partnering with Galaxy, we will push the envelope together and drive the evolution of the TradFi landscape onchain,” said Kim Hochfeld, global head of cash and digital assets for State Street Investment Management.

“Tokenization is rapidly becoming the connective tissue between traditional finance and the onchain economy,” said Ian De Bode, president of Ondo Finance. “Our planned investment would not only anchor this innovative fund – but also supports the continued growth of Ondo’s fund that offers institutional investors exposure to short-term US Treasuries with 24/7 instant mints and redemptions.”

Related: Blockchain trial on Canton Network tests collateral reuse with tokenized US Treasurys

Source: CoinTelegraph