State Street and Galaxy Asset Management said they plan to launch a tokenized liquidity fund in early 2026, using stablecoins to enable round-the-clock investor subscriptions and redemptions and further extending the use of public blockchains in institutional cash management.

The product, called the State Street Galaxy Onchain Liquidity Sweep Fund, or SWEEP, will process inflows and outflows in Paxos-issued PYUSD, provided the fund has sufficient assets available to meet requests. Access will be limited to Qualified Purchasers that meet specific eligibility thresholds. Ondo Finance has committed approximately $200 million to seed the fund.

At launch, the firms expect to issue SWEEP on the Solana blockchain, with plans to expand support to Stellar and Ethereum. Galaxy said it will use Chainlink’s cross-chain infrastructure to facilitate the movement of data and assets across networks.

According to the companies, the fund is aimed at institutional investors seeking to hold cash-like assets onchain while maintaining the liquidity characteristics typically associated with traditional sweep vehicles.

Kim Hochfeld, global head of cash and digital assets at State Street, said the initiative reflects a growing shift in collaboration between established financial institutions and crypto-native firms.

“By partnering with Galaxy, we’re pushing the boundaries together and helping drive the evolution of traditional finance onchain,” Hochfeld said.

Ondo Finance President Ian De Bode said the planned investment underscores the accelerating convergence between traditional capital markets and blockchain-based finance.

“Tokenization is quickly becoming the connective tissue between traditional finance and the onchain economy, and SWEEP represents a meaningful step forward in that transition,” he said.

The project builds on the firms’ existing partnership, which includes a suite of digital-asset exchange-traded funds launched in 2024.