State Street Investment Management and Galaxy Digital’s affiliate Galaxy Asset Management announced the launch of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP) on May 5 2026. The partnership creates a tokenized private liquidity fund that allows institutional investors to sweep excess cash into a stablecoin pool for continuous, 24/7 on‑chain cash management while meeting regulatory compliance requirements.
SWEEP is structured as a tokenized private liquidity fund that holds a basket of stablecoins. The fund’s design enables investors to move cash into and out of the pool at any time, providing near‑real‑time liquidity that traditional money‑market funds cannot match. The fund’s operations are governed by a set of regulatory frameworks that ensure compliance with securities and anti‑money‑laundering rules, and the availability of stablecoins in the portfolio is managed through a dynamic allocation strategy that balances yield and liquidity needs.
The launch represents a strategic pivot for Galaxy Digital, which reported a net loss of $216 million ($0.49 per share) in its most recent Q1 2026 earnings, an improvement from a $482 million loss in Q4 2025. By adding SWEEP to its product suite, Galaxy is positioning itself to generate new fee‑based revenue streams that can offset the downturn in its trading and mining businesses. The fund’s introduction is therefore a key component of Galaxy’s broader effort to diversify income and strengthen its institutional client base.
State Street’s involvement builds on its prior digital‑asset initiatives, including the launch of three actively managed digital‑asset ETFs in September 2024 that were sub‑advised by Galaxy. The SWEEP partnership extends State Street’s digital‑asset footprint into the on‑chain cash‑management arena, reinforcing its long‑standing commitment to innovation and client outcomes in the evolving asset‑management landscape.
Ondo Finance is expected to provide an initial investment of $200 million in SWEEP, underscoring market confidence in the fund’s viability and the broader institutional appetite for tokenized liquidity solutions. The seed capital will help establish the fund’s liquidity base and signal to other potential investors that the product has credible backing from a leading DeFi infrastructure provider.
Mike Novogratz, founder and CEO of Galaxy Digital, said, “For years we’ve argued that traditional finance and crypto would converge on the same rails. 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.” Yie‑Hsin Hung, president and chief executive officer of State Street Investment Management, added, “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. 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.”
The SWEEP fund positions both companies at the forefront of the convergence between traditional finance and decentralized finance. By offering 24/7 on‑chain liquidity, the fund can potentially deliver higher yields than conventional money‑market funds while reducing operational friction through tokenization. For Galaxy, the product diversifies revenue and strengthens its institutional client relationships amid a challenging crypto market. For State Street, the partnership expands its digital‑asset service portfolio and reinforces its reputation as an innovator in asset‑management infrastructure. Together, the launch signals a broader industry shift toward tokenized private market products and institutional adoption of on‑chain cash‑management solutions.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.