State Street, Galaxy, Ondo Launch 24/7 Tokenized Cash Fund on Solana

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State Street, Galaxy and Ondo join tokenized cash race with 24/7 sweep fund

State Street and Galaxy Asset Management are partnering with Ondo Finance to create a new fund that uses digital tokens to represent cash balances. This allows those balances to be held directly on public blockchains, potentially creating a constant source of liquidity that can be accessed around the clock.

State Street and PayPal announced Tuesday a new fund, called SWEEP, that will allow accredited investors to buy and sell PayPal’s stablecoin, PYUSD.

Ondo plans to invest $200 million into the fund, connecting a leading provider of tokenized real-world assets (RWAs) with State Street’s technology for tokenizing assets. Galaxy Digital will provide the necessary infrastructure, and State Street Bank and Trust Company, part of State Street Investment Management, will securely hold the fund’s assets.

SWEEP is planned to launch on the Solana network in early 2026, and will later expand to other networks like Stellar and Ethereum. This expansion will be facilitated by Chainlink’s CCIP, which allows different blockchains to connect and communicate.

Race to define onchain cash

This new development adds another major player to the growing competition to create institutional-grade “onchain cash” solutions. Companies like BlackRock and Franklin Templeton are already offering tokenized versions of cash management tools – including short-term investments – on public blockchains. Meanwhile, Ondo Finance specializes in converting traditional assets like Treasury bonds into onchain formats that can be used within the crypto market.

State Street Investment Management’s Kim Hochfeld explained that their collaboration with Galaxy will help to innovate and advance the traditional finance industry using blockchain technology.

According to Ian De Bode, president of Ondo Finance, tokenization is increasingly bridging the gap between traditional financial systems and the world of blockchain. Their upcoming investment will both establish this new fund and help Ondo expand its existing fund, which provides institutional investors with access to short-term US Treasury bonds, allowing them to quickly and easily buy and sell at any time.

Building an onchain capital markets stack

With the recent launch, digital representations of funds and stocks are beginning to form the foundation of a new financial system built on blockchain, rather than remaining separate, experimental projects.

Superstate launched a new service Wednesday that allows publicly traded companies registered with the US Securities and Exchange Commission to raise capital directly on the Ethereum and Solana blockchains. Through its Direct Issuance Programs, companies can sell new stock for stablecoins, with the funds settling instantly into investors’ digital wallets.

State Street’s collaboration with Galaxy and Ondo demonstrates how traditional financial companies and crypto firms are increasingly working together and offering similar products. State Street offers established regulatory compliance and secure asset storage, Galaxy provides the technology for digital assets and turning real-world assets into tokens, and Ondo brings funding and a network for distributing these tokenized assets.

Solana’s role in the tokenization race

Solana’s popularity shows there’s a growing competition beyond just who can build the best technology. It’s become a preferred platform for new types of digital assets and fast trading – everything from tokenized stocks to innovative financial experiments – because it offers lower costs and quicker transaction processing.

Major companies like Western Union and Pfizer are increasingly using the Solana blockchain for their financial operations. Western Union, which handles over $100 billion in money transfers each year, and Pfizer, processing $2 trillion in payments annually, are both utilizing the technology. Investment funds built on Solana, holding actual digital assets, are also rapidly growing, nearing $1 billion in value.

SWEEP is starting on Solana, and will later add support for Stellar and Ethereum. This approach lets SWEEP connect with existing systems that already use stablecoins and real-world asset tokens.

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2025-12-11 12:49