Ondo Finance has joined forces with State Street Investment Management and Galaxy Asset Management to launch SWEEP, an innovative tokenized private liquidity fund. The partnership aims to transform how institutions manage cash on blockchain networks, with Ondo committing $200 million to seed this first-of-its-kind investment vehicle.
The State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP) will utilize stablecoins for continuous liquidity, allowing institutional investors to access cash-like assets while maintaining the flexibility they expect from traditional sweep products. This collaboration marks a significant advancement in bringing conventional cash management tools onto public blockchains.
Ondo Finance has joined with State Street Investment Management and Galaxy Asset Management to announce plans for SWEEP, a new private tokenized liquidity fund bringing traditional cash management onchain.
— Ondo Finance (@OndoFinance) December 11, 2025
OUSG, Ondo’s flagship tokenized fund, plans to serve as the lead anchor… pic.twitter.com/YM8yCRbVhc
Bridging Traditional Finance with Blockchain Technology
SWEEP will operate on the Solana blockchain at launch, planned for early 2026, with additional blockchain integrations expected on Stellar and Ethereum networks in the future. The fund will accept subscriptions and redemptions in PYUSD, a regulated stablecoin, enabling around-the-clock investor flows outside traditional banking hours.
Kim Hochfeld, global head of cash and digital assets at State Street, highlighted the significance of this partnership: “By partnering with Galaxy, we will push the envelope together and drive the evolution of the TradFi landscape onchain. We’re beginning to see what’s possible when traditional finance and DeFi sector players unite.”
The fund will be available exclusively to Qualified Purchasers who meet certain eligibility requirements. Galaxy plans to leverage Chainlink tools to facilitate cross-chain interoperability, ensuring seamless data and asset movement across different blockchain networks.
Ondo Finance’s Strategic Investment
Ondo Finance, already a leader in tokenizing real-world assets, has committed approximately $200 million to seed the SWEEP fund. This investment further solidifies Ondo’s position in bridging traditional financial instruments with blockchain technology.
Ian De Bode, President of Ondo Finance, emphasized the strategic importance of this collaboration: “Tokenization is rapidly becoming the connective tissue between traditional finance and the onchain economy, and SWEEP represents a major leap forward in that evolution. Our planned investment would not only anchor this innovative fund but also supports the continued growth of Ondo’s existing products.”
Ondo Finance has established itself as a pioneer in bringing tokenized U.S. Treasuries to blockchain networks through its flagship offerings, OUSG and USDY. With over $1.3 billion in tokenized assets under management, Ondo provides institutional investors with access to traditional financial instruments that offer 24/7 liquidity and yield generation on multiple blockchain networks.
Institutional Adoption of Blockchain Finance
The partnership between Ondo Finance, State Street, and Galaxy Asset Management represents a growing trend of traditional financial institutions embracing blockchain technology for asset management. State Street, one of the world’s largest custodian banks, has been gradually expanding its digital asset offerings.
Steve Kurz, global head of asset management at Galaxy, explained the value proposition: “SWEEP is a game-changing collaboration that will offer digital investors an onchain liquidity fund option, reimagining the way institutional DeFi investors hold cash and manage their operations.”
The SWEEP fund expands the existing relationship between State Street Investment Management and Galaxy. In September 2024, they launched three actively managed ETFs focused on digital assets and disruptive technologies.
Looking Ahead: The Future of Tokenized Assets
As financial institutions continue to explore blockchain technology for asset management, initiatives like the SWEEP fund pave the way for broader adoption of tokenized assets. The ability to maintain cash-like instruments on blockchain networks addresses a critical need for institutions operating in both traditional and decentralized finance.
The collaboration between Ondo Finance, State Street, and Galaxy demonstrates how leaders from traditional finance, DeFi, and tokenization can work together to create innovative financial products. As the financial landscape evolves, we can expect to see more institutions developing solutions that bridge the gap between conventional banking and blockchain-based finance.
The SWEEP fund represents an important step toward a more open, efficient financial system where traditional assets can be accessed and traded on digital networks with the security, compliance, and convenience that institutional investors require.
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