State Street Investment Management and Galaxy Asset Management (GLXY) have launched a tokenized fund aimed at moving cash management, a core part of finance, to blockchain networks, the companies announced on Tuesday.
The State Street Galaxy On-Chain Liquidity Sweep Fund trades under the ticker SWEEP and allows large investors to park their stablecoins in a yield-producing fund while maintaining the ability to move in and out at any time. Unlike traditional money market funds, which operate during market hours, the new structure runs continuously on blockchain infrastructure.
The market for tokenized funds has grown rapidly over the past year, driven by products such as BlackRock’s BUIDL, which packages short-term U.S. Treasury exposures into blockchain-based tokens. BUIDL has attracted billions of dollars, demonstrating that financial institutions are willing to hold tokenized versions of familiar products if the structure meets their compliance and liquidity needs.
Other companies are building similar products, including Franklin Templeton and State Street, which is now partnering with Sweep, each experimenting with different blockchain and investor access models.
SWEEP is launching on the Solana (SOL) blockchain and has plans to expand to Ethereum (ETH) and Stellar (XLM). Galaxy will provide the underlying tokenization system, Anchorage will be responsible for custody of the digital assets, and State Street will oversee the traditional securities included in the portfolio.
The move reflects a broader shift among major financial companies exploring how blockchain can update the way markets work. Currently, moving cash between accounts or funds often involves delays, cut-off times, and intermediaries. In a blockchain-based system, money could theoretically be moved instantly and around the clock.
The launch also deepens the relationship between State Street and Galaxy, who have been collaborating on digital asset investment products since 2024.
For State Street, which manages more than $5 trillion in assets, the fund marks a step toward offering traditional investment products in tokenized form. For Galaxy, this will strengthen efforts to build infrastructure that connects the virtual currency market and institutional finance.
Access to the fund is limited to qualified institutional investors, underscoring that the transition to on-chain finance remains focused on large corporations rather than individual users at this time.
