Ondo, State Street and Galaxy to Launch SWEEP Tokenized Liquidity Fund on Solana in 2026
Ondo Finance, State Street Investment Management and Galaxy Asset Management will launch the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized private liquidity fund, on Solana in early 2026. SWEEP tokenizes exposure to US Treasuries and aims to provide near‑instant, 24/7 on‑chain liquidity using PayPal’s stablecoin PYUSD, with State Street Bank & Trust as custodian and Galaxy supplying tokenization infrastructure. Ondo’s flagship tokenized fund OUSG will act as the anchor investor with a planned allocation of about $200 million; OUSG currently manages roughly $770 million and is distributed across Solana, Ethereum, Ripple and Polygon. The partners plan to expand cross‑chain support to Stellar and Ethereum after the Solana launch, using Chainlink for cross‑chain connectivity. The announcement follows the SEC’s closure of a two‑year probe into Ondo Finance regarding tokenization and the ONDO token — a development market participants say contributed to a recent relief rally in ONDO. Access to SWEEP will be restricted to qualified institutional purchasers under applicable regulations. Key SEO keywords: tokenized liquidity fund, SWEEP, Ondo Finance, State Street, Galaxy, Solana, OUSG, tokenization.
Bullish
The announcement is bullish for the associated crypto assets, primarily SOL and ONDO, for several reasons. First, launching SWEEP on Solana drives demand for Solana’s on‑chain infrastructure and its native token (SOL) because the fund will use Solana for minting, redemptions and distribution — increasing network activity and potentially fee/revenue flows. Second, the SEC’s closure of its probe into Ondo and the confirmation of a large anchor allocation from OUSG (~$200M) reduces regulatory uncertainty around Ondo and has already correlated with a relief rally in ONDO. Third, institutional backing from State Street and Galaxy enhances credibility for tokenized cash management products, which can attract further institutional flows into stablecoin and tokenized‑treasury products; that could support continued positive sentiment for ONDO and boost on‑chain demand on Solana. Short‑term effects: likely positive price momentum for ONDO and modest demand tailwinds for SOL around the announcement and Solana launch milestones. Volatility may spike on news and allocation updates. Long‑term effects: if SWEEP scales and other institutions follow suit, sustained on‑chain treasury tokenization could increase institutional activity on Solana and support higher baseline demand for related tokens; however, execution risks (delays, regulatory constraints, cross‑chain implementation challenges) could temper gains. Overall, net impact is bullish for the mentioned tokens but contingent on successful rollout and broader institutional adoption.