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State Street and Galaxy launch tokenized fund to bring cash management onchain
The fund lets institutions earn yield on stablecoins while moving cash onchain with round-the-clock access.
May 5, 2026, 1:07 p.m. 2 min read
What to know:
- State Street Investment Management and Galaxy Asset Management have launched the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized cash-management vehicle for large investors.
- SWEEP lets qualified institutional investors park stablecoins in a yield-generating fund that operates continuously on blockchain infrastructure, starting on Solana and expanding to Ethereum and Stellar.
- The fund underscores Wall Street’s growing embrace of tokenized versions of traditional instruments, while keeping access limited to institutions as firms test blockchain-based market plumbing.
The market for tokenized funds has grown quickly over the past year, led by products like BlackRock’s BUIDL, which packages short-term U.S. Treasury exposure into a blockchain-based token. BUIDL has attracted billions of dollars, signaling that institutions are willing to hold tokenized versions of familiar instruments when the structure meets compliance and liquidity needs.
Other firms, including Franklin Templeton and now State Street with SWEEP, are building similar products, each experimenting with different blockchains and investor access models.
