Rather than treating tokenization as an experiment, the three firms are positioning it as a core feature of how money should move in the future.
Their joint initiative, known as SWEEP, reimagines the familiar cash-sweep model — typically used by institutions to shuttle spare funds into short-term instruments — by shifting that process onto blockchain rails. Instead of settling through traditional banking cutoffs, SWEEP is built to operate continuously and settle using PYUSD, PayPal’s regulated stablecoin.
Unlike most tokenization pilots that start small, this fund arrives with immediate scale. Ondo Finance plans to inject $200 million of its own capital on day one, reinforcing its role as a major supplier of tokenized Treasuries and credit-based RWAs. Galaxy Digital’s technology stack will run the blockchain side, while State Street Bank and Trust Company oversees custody in line with institutional requirements.
Although the partners ultimately intend to operate on several networks, the first deployment is slated for Solana in early 2026, followed later by Stellar and Ethereum, with Chainlink’s CCIP enabling cross-chain movement of shares and liquidity.
Tokenized Cash Is Becoming a Battleground for Global Asset Managers
What makes the partnership significant is not just its size — it’s the timing. A quiet race has been brewing among some of the largest asset managers on earth to define what “cash onchain” should look like.
BlackRock and Franklin Templeton have already rolled out tokenized liquidity vehicles, and Ondo’s products are widely used in crypto markets that need exposure to short-term Treasuries. By stepping in, State Street and Galaxy add another heavyweight contender, signaling that tokenized money-market products are fast becoming a mainstream competitive category in traditional finance.
The leaders behind the project argue that tokenization is no longer theoretical. Kim Hochfeld of State Street describes it as the next iteration of institutional infrastructure, while Ondo’s president, Ian De Bode, says tokenized Treasuries and 24/7 mint-and-redeem mechanisms are setting the stage for a new financial backbone.
More Than a Fund – A Piece of a Larger Onchain Market Structure
The SWEEP rollout is happening alongside a broader shift where tokenized assets are beginning to interlock like components of a more complete capital-markets system.
Superstate, for example, has begun enabling public companies to raise equity directly onblockchain, bypassing legacy settlement systems and delivering shares straight to investor wallets. Tokenized equities, tokenized liquidity funds and cross-chain interoperability tools are increasingly functioning as layers of the same emerging stack.
Within that stack:
- •State Street serves as the regulated supervisory layer,
- •Galaxy provides the technological rails, and
- •Ondo contributes the liquidity and the distribution network.
This division of roles reflects how the financial industry is reorganizing itself around token markets.
Solana’s Early Lead in the Tokenization Arena
Solana’s selection as the venue for SWEEP’s debut highlights a second competitive race — not among asset managers, but among blockchains themselves. Solana’s extremely low fees and high throughput have made it a magnet for issuers building tokenized assets and institutions experimenting with real-time settlement.
Corporations like Western Union and Pfizer have already chosen Solana to support parts of their payments and digital-asset strategies. The network now hosts close to $1 billion in physically backed ETFs alone, suggesting that institutional adoption is spreading beyond early pilots.
Launching SWEEP on Solana gives the fund instant access to an environment where stablecoins, RWAs and high-speed settlement are already deeply integrated. Expansion to Stellar and Ethereum will broaden the fund’s reach into ecosystems where institutional stablecoin activity and tokenized Treasuries are already well established.