State Street Investment Management and Galaxy Digital Partner to Tokenize Private Liquidity Fund, With Planned Seed Investment from Ondo

Executive Summary

• State Street Investment Management and Galaxy Digital announced the upcoming launch of the State Street Galaxy Onchain Liquidity Sweep Fund (“SWEEP”), a tokenized private liquidity fund targeting qualified purchasers.
• Ondo Finance is slated to seed SWEEP with an estimated $200 million.
• The fund will initially operate on the Solana blockchain (early 2026) and later expand to Stellar and Ethereum, using PYUSD stablecoins for subscriptions/redemptions and leveraging Chainlink for cross‑chain interoperability.

Key Details

• Fund Structure: Private liquidity fund tokenized on‑chain; subscriptions/redemptions via PYUSD stablecoin, subject to portfolio availability.
• Seed Capital: Ondo Finance to provide approximately $200 million as the initial investment.
• Target Investors: Qualified Purchasers meeting eligibility criteria; minimum subscription $5 M (entity) or $1 M (individual).
• Blockchain Deployment: Launch on Solana in early 2026; future integrations planned for Stellar and Ethereum.
• Technology Partners: Galaxy Digital supplies tokenization platform and digital infrastructure; Chainlink to enable cross‑chain interoperability.
• Custody: State Street Bank and Trust Company will act as custodian for the fund’s treasury holdings.
• Management Expertise: Combines State Street’s traditional cash/liquidity management experience with Galaxy’s blockchain infrastructure capabilities.
• Strategic Rationale: Provides institutional investors a 24/7 on‑chain cash management solution, bridging TradFi and DeFi.

Notable Quotes

• “Innovation and partnership are at the heart of our ethos… we’re thrilled to deepen our relationship with Galaxy by bringing this groundbreaking product to market together.” – Kim Hochfeld, Global Head of Cash and Digital Assets, State Street Investment Management
• “SWEEP is a game‑changing collaboration that will offer digital investors an onchain liquidity fund option…” – Steve Kurz, Global Head of Asset Management, Galaxy Digital
• “Our planned investment would not only anchor this innovative fund… it supports the continued growth of Ondo’s fund offering institutional exposure to short‑term US Treasuries with 24/7 instant mints and redemptions.” – Ian De Bode, President, Ondo Finance