State Street and Galaxy Launch Tokenized Liquidity Fund for Institutions
State Street and Galaxy Asset Management have launched the State Street Galaxy Onchain Liquidity Sweep Fund, ticker SWEEP, which is a tokenized vehicle that allows qualified institutional investors to park stablecoins in a yield-bearing fund backed by short-duration US Treasury securities.
The fund, initially launched on Solana, lets institutions subscribe and redeem in stablecoins around the clock, eliminating the need for wiring dollars through legacy plumbing during banking hours. Subscriptions and redemptions are available 24/7 in PYUSD, with USDC support planned for later.
Galaxy provides the infrastructure for SWEEP tokens themselves, while Anchorage Digital handles digital asset custody, State Street Bank and Trust Company handles traditional securities custodianship, NAV Consulting manages transfer agency services, and Chainlink delivers cross-chain data and messaging capabilities.
The fund's target expense ratio sits at 0.50% per annum, which is worth contextualizing against the 0.10-0.30% charge range of traditional government money market funds.