The State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP) is born.
State Street Investment Management and Galaxy Asset Management have launched the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP). This tokenized private liquidity fund enables 24/7 on-chain cash management via stablecoin, subject to the availability of stablecoin in the fund’s portfolio, officials say.
The launch is “a milestone in State Street’s digital strategy to offer investment solutions on-chain and support 24/7 programmatic trading and liquidity for cash management,” officials say. Galaxy Asset Management is an affiliate of Galaxy Digital Inc.
“SWEEP is powered by Galaxy’s Digital Infrastructure, which provides the tokenization technology and digital infrastructure supporting the issuance and management of SWEEP tokens,” officials say. “The fund is built to allow stablecoin holders to sweep their stablecoin into a yield-bearing asset.”
Officials add that SWEEP “allows investors to use PayPal USD (PYUSD) stablecoins for subscriptions and redemptions, subject to portfolio availability, and is available to Qualified Purchasers that meet certain eligibility criteria and minimum investment amounts.”
Initially, the SWEEP fund will launch on the Solana blockchain, “with additional blockchain integrations planned, including Stellar and Ethereum,” officials say.
“Anchorage serves as the fund’s digital custodian for stablecoin investments, NAV Consulting serves as transfer agent, and Galaxy is leveraging Chainlink NAVLink to publish the fund’s daily NAV on-chain and Chainlink CCIP for secure cross-chain interoperability. State Street Bank and Trust Company serves as the fund’s custodian for securities holdings,” officials add.
The SWEEP launch “deepens State Street Investment Management’s relationship with Galaxy. In September 2024, State Street Investment Management launched three actively managed ETFs sub-advised by Galaxy that are focused on digital assets and disruptive technologies,” officials say.
“For years we’ve argued that traditional finance and crypto would converge on the same rails,” says Mike Novogratz, founder and CEO of Galaxy, in a prepared statement. “We believe SWEEP is what that looks like in practice, with a fund managed by an experienced cash manager being available for investors on-chain, on infrastructure Galaxy built for institutions.”
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