State Street and Galaxy launch tokenized fund to bring cash management onchain

The fund lets institutions earn yield on stablecoins while moving cash onchain with round-the-clock access.

What to know:

• State Street Investment Management and Galaxy Asset Management have launched the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized cash-management vehicle for large investors.
• SWEEP lets qualified institutional investors park stablecoins in a yield-generating fund that operates continuously on blockchain infrastructure, starting on Solana and expanding to Ethereum and Stellar.
• The fund underscores Wall Street’s growing embrace of tokenized versions of traditional instruments, while keeping access limited to institutions as firms test blockchain-based market plumbing.

State Street Investment Management and Galaxy Asset Management (GLXY) have launched a tokenized fund designed to move a core piece of finance — cash management — onto blockchain networks, the firms said Tuesday.

The State Street Galaxy Onchain Liquidity Sweep Fund, trading under the ticker SWEEP, allows large investors to park stablecoins into a fund that generates yield, while keeping the ability to move in and out at any time. Unlike traditional money market funds that operate during market hours, the new structure runs continuously on blockchain infrastructure.