State Street Investment Management and Galaxy Asset Management have launched the State Street Galaxy Onchain Liquidity Sweep Fund, a tokenized vehicle trading under the ticker SWEEP that lets qualified institutional investors convert stablecoins into yield-bearing exposure backed primarily by short-duration US Treasury securities.

The fund operates much like a blockchain-based money market fund. Instead of wiring dollars through legacy banking rails during business hours, institutions can subscribe and redeem around the clock in PYUSD, with USDC support planned for later. The product initially launched on Solana, with expansion to Stellar and Ethereum on the roadmap.

The two firms first announced the collaboration in December 2025, extending a relationship that included prior work on digital asset ETFs in 2024.

How does SWEEP work in practice?

Access is restricted to Qualified Purchasers, with minimum investments of $5 million for entities and $1 million for individuals. The target expense ratio sits at 0.50% per annum. That carries a premium over traditional government money market funds, which typically charge between 0.10% and 0.30%.

The service-provider stack is fully institutional:

• Galaxy provides the infrastructure for the SWEEP tokens themselves
• Anchorage Digital handles digital asset custody
• State Street Bank and Trust Company manages traditional securities custodianship
• NAV Consulting runs transfer agency services
• Chainlink delivers cross-chain data and messaging capabilities

By restricting the fund to Qualified Purchasers and using regulated service providers, the product is structured to operate within existing securities frameworks rather than around them.

What did the executives say?

Yie-Hsin Hung, CEO of State Street Investment Management, described the launch as bringing the "TradFi landscape onchain," emphasizing resilience and accessibility as core goals. Galaxy CEO Mike Novogratz framed the product as a convergence of traditional finance and the crypto ecosystem, aimed at enhancing the productivity of cash management.

Why does stablecoin-native subscription matter?

The subscription mechanism is what sets SWEEP apart from most existing tokenized treasury products, which still require fiat on-ramps or bank wires for entry and exit. By accepting PYUSD directly — and eventually USDC — SWEEP removes a friction point that has kept some crypto-native institutions away from tokenized treasury vehicles entirely.

The multi-chain strategy also signals which institutional constituencies the managers are targeting. Solana, as the initial deployment chain, offers transaction speed and low fees. Stellar brings deep roots in payments and cross-border settlement infrastructure, while Ethereum remains the default network for institutional DeFi and tokenized assets.

What comes next?

The fund's near-term milestones are concrete: USDC subscription support, and the planned expansions to Stellar and Ethereum that would extend SWEEP's reach across the three chains where institutional stablecoin activity is most concentrated.