State Street and Galaxy launch tokenized SWEEP liquidity fund bridging TradFi and crypto
RWA Signal Insight
State Street Investment Management and Galaxy Asset Management have launched the State Street Galaxy Onchain Liquidity Sweep Fund, known as SWEEP, to provide institutional investors with 24/7 access to short-duration US Treasury exposure. The fund distinguishes itself by allowing direct subscriptions and redemptions using stablecoins, specifically PYUSD, with plans to integrate USDC support. By enabling stablecoin-native entry, the product removes the traditional friction of fiat on-ramps that typically hinders crypto-native institutions. The fund is restricted to Qualified Purchasers, requiring a minimum investment of $5 million for entities and $1 million for individuals, with a target expense ratio of 0.50%. Infrastructure for the tokenized vehicle is provided by Galaxy, while Anchorage Digital and State Street Bank handle custody services. The fund is launching on Solana, with future expansion planned for the Stellar and Ethereum blockchains to reach diverse institutional constituencies. This launch represents a significant step in bridging traditional finance with on-chain liquidity management by operating strictly within existing securities frameworks.
Key points
- SWEEP fund allows 24/7 stablecoin-to-Treasury subscriptions on the Solana blockchain.
- Minimum investment is $5 million for entities and $1 million for individuals.
- Service providers include Anchorage Digital, State Street Bank, and Chainlink.
- Fund targets a 0.50% annual expense ratio with planned expansion to Ethereum and Stellar.
Background
State Street is a global financial services holding company and one of the world's largest asset custodians. Galaxy Asset Management is a division of Galaxy Digital, a financial services firm focused on digital assets and blockchain technology. Together, they leverage traditional institutional infrastructure to bridge regulated financial products with decentralized ledger technology.