State Street, Galaxy Launch PYUSD Tokenized Liquidity Fund

State Street Investment Management and Galaxy Digital launched the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP) on the Solana blockchain on May 5. The fund accepts subscriptions and redemptions in PayPal USD (PYUSD) and lets institutional investors move cash on-chain to earn yield in real time. Core operations-subscriptions, redemptions, valuation and reporting-are integrated onto blockchain infrastructure.

SWEEP is built initially on Solana with plans to expand to Ethereum and Stellar. The structure supports continuous flows of cash rather than transfers limited to traditional market hours. The fund is designed for institutional treasury use as an on-chain alternative to holding idle cash in conventional money-market products.

Galaxy Digital provides the blockchain infrastructure for issuance and management. Anchorage Digital will custody the fund’s stablecoin holdings, while State Street Bank and Trust Company retains custody of the fund’s traditional assets. NAV Consulting serves as transfer agent. The fund uses Chainlink technology to publish daily net asset value data on-chain and to support interoperability across different blockchains.

State Street and Galaxy first collaborated in 2024 on a set of exchange-traded funds; SWEEP expands that relationship. Materials from late 2025 referenced a potential seed allocation from Ondo Finance, but that allocation did not appear in the formal launch announcement.

Money-market funds hold about $6 trillion globally. Tokenized U.S. Treasury products remain smaller, measured in the tens of billions of dollars, but have been growing as firms test blockchain rails. State Street oversees more than $5 trillion in assets.

Yie-Hsin Hung, president and chief executive of State Street Investment Management, said in the company announcement: “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.” Galaxy founder and CEO Mike Novogratz added: “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.”

The launch will test whether institutional treasurers move a portion of cash holdings onto blockchain infrastructure. The fund team signaled expansion to additional blockchains as operations and interoperability scale.