State Street Investment Management and Galaxy Digital Partner to Tokenize Private Liquidity Fund, With Planned Seed Investment from Ondo
SWEEP will launch with anticipated $200 million investment from Ondo, driving innovation and accelerating the industry's TradFi to DeFi transformation
State Street Investment Management and Galaxy Asset Management, an affiliate of Galaxy Digital Inc. (NASDAQ/TSX:GLXY), today announced the forthcoming launch of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized private liquidity fund that will unlock the potential for 24/7 onchain liquidity by utilizing PYUSD stablecoins for subscriptions and redemptions, subject to availability from the fund's portfolio. SWEEP will be available to Qualified Purchasers that meet certain eligibility criteria and minimum investment amounts. Ondo Finance is anticipated to seed the fund with approximately $200 million.
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The fund is anticipated to debut on the Solana blockchain in early 2026, with additional blockchain integrations planned for the future, including on Stellar and Ethereum. Galaxy intends to leverage Chainlink to help facilitate cross-chain interoperability.
SWEEP will combine State Street's decades-long expertise in traditional cash and liquidity management with Galaxy's deep capabilities in blockchain infrastructure, representing a new option for eligible investors seeking a liquid, onchain cash management solution. State Street Bank and Trust Company, an affiliate of State Street Investment Management, will serve as custodian for the fund's treasury holdings. SWEEP will be powered by Galaxy's Digital Infrastructure which will provide the tokenization technology and secure digital infrastructure that powers the issuance and management of SWEEP tokens.
"Innovation and partnership are at the heart of our ethos at State Street Investment Management and to that end we're thrilled to deepen our relationship with Galaxy by bringing this groundbreaking product to market together," said Kim Hochfeld, global head of cash and digital assets for State Street Investment Management. "By partnering with Galaxy, we will push the envelope together and drive the evolution of the TradFi landscape onchain. We're beginning to see what's possible when TradFi and DeFi sector players unite – and it's increasingly clear that joint efforts like this stand to have a far-reaching impact on the future of asset management and capital markets."
"SWEEP is a game-changing collaboration that will offer digital investors an onchain liquidity fund option, reimagining the way institutional DeFi investors hold cash and manage their operations," said Steve Kurz, global head of asset management at Galaxy. "We're proud to be working with a longtime leader in cash management like State Street to make this innovative approach to digital assets a reality."
"Tokenization is rapidly becoming the connective tissue between traditional finance and the onchain economy, and SWEEP represents a major leap forward in that evolution," said Ian De Bode, President of Ondo Finance. "Our planned investment would not only anchor this innovative fund – but also supports the continued growth of Ondo's fund that offers institutional investors exposure to short-term US Treasuries with 24/7 instant mints and redemptions. This collaboration with State Street and Galaxy shows how leaders in TradFi, DeFi and tokenization can come together to accelerate the transition to a more open, onchain financial system."
SWEEP expands 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.
About State Street Investment Management
At State Street Investment Management, we have been helping create better outcomes for institutions, financial intermediaries, and investors for nearly half a century. Starting with our early innovations in indexing and ETFs, our rigorous approach continues to be driven by market-tested expertise and a relentless commitment to those we serve. With over $5 trillion in assets managed*, clients in over 60 countries, and a global network of strategic partners, we use our scale to deliver a comprehensive and cost-effective suite of investment solutions that help investors get wherever they want to go. State Street Investment Management is the asset management arm of State Street Corporation (NYSE:STT).
*This figure is presented as of September 30, 2025 and includes ETF AUM of $1,848.02 billion USD of which approximately $144.95 billion USD in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Investment Management are affiliated. Please note all AUM is unaudited.
About Galaxy
Galaxy Digital Inc. (Nasdaq/TSX:GLXY) is a global leader in digital assets and data center infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence. Our digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology. In addition, we develop and operate cutting-edge data center infrastructure to power AI and high-performance computing workloads. Our 800 MW Helios campus in Texas, which has an additional 2.7 GW of power under study, positions Galaxy among the largest and fastest-growing data center developments in North America. The Company is headquartered in New York City, with offices across North America, Europe, the Middle East, and Asia. Additional information about Galaxy's businesses and products is available on www.galaxy.com.
About Ondo Finance
Ondo is a blockchain technology company. Its mission is to accelerate the transition to an open economy by building the platforms, assets, and infrastructure that bring financial markets onchain. For more information, visit https://ondo.finance.
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Any investment in the State Street Galaxy Onchain Liquidity Sweep Fund, including but not limited to an investment by Ondo Finance through their tokenized treasuries fund, remains subject to definitive fund offering and governing documents.
Prospective investors should carefully read the private placement memorandum of the fund in its entirety prior to investing. However, the contents of the private placement memorandum should not be considered to be investment, legal or tax advice, and each prospective investor should consult with its own counsel and advisers as to all matters concerning an investment in the fund. No offer of interests in the fund will be made except pursuant to the private placement memorandum of the fund.
Investors in the Fund must meet eligibility criteria as set forth in the Private Placement Memorandum and the other offering documents of the Fund. The minimum initial subscription to the Fund is $5,000,000 for entity investors and $1,000,000 for individual/natural person investors.
Risk of Loss. No guarantee or representation is made that the Fund's investment program will be successful. Investment results may vary substantially over time. No assurance can be made that profits will be achieved or that substantial or complete losses will not be incurred.
Money Market Risk. An investment in a money market fund such as the Fund is not a deposit of any bank and is not insured or guaranteed by the FDIC or any other government agency.
Low Short-Term Interest Rates. During market conditions in which short-term interest rates are at low levels, the Fund's yield can be very low. During these conditions, it is possible that the Fund will generate an insufficient amount of income to pay its expenses, and that it may have a negative yield (i.e., it may lose money on an operating basis).
Focused Investment Risk. The Fund is expected to invest a large percentage of its assets in treasury securities, which may result in more risk or greater volatility in returns than if the Fund's investments were less focused.
U.S. Treasury Obligations Risk. U.S. Treasury obligations may differ from other securities in their interest rates, maturities, times of issuance and other characteristics. Similar to other issuers, changes to the financial condition or credit rating of the U.S. government may cause the value of the Fund's U.S. Treasury obligations to decline.
Repurchase Agreement Risk. Repurchase agreements may be viewed as loans made by the Fund that are collateralized by the securities subject to repurchase. The Fund's investment return on such transactions will depend on the counterparty's willingness and ability to perform its obligations under a repurchase agreement. If the Fund's counterparty should default on its obligations and the Fund is delayed or prevented from recovering the collateral, or if the value of the collateral is insufficient, the Fund may realize a loss.
Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the fund. SSGA Funds Management has also retained Galaxy Digital Partners LLC, member FINRA, SIPC ("Galaxy Digital") as placement agent to the fund. State Street Global Advisors Funds Distributors, LLC is not affiliated with Galaxy Digital.
Before investing, consider the funds' investment objectives, risks, charges and expenses. All statements are subject to the definitive offering documents of the fund, available from State Street Global Advisors Funds Distributors, LLC or Galaxy Digital.
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Exp. Date: 12/31/2026
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