State Street, Galaxy Launch Tokenized Cash-Management Fund Offering Stablecoin Yield

State Street Investment Management and Galaxy Asset Management have launched a tokenized cash-management fund that combines traditional finance with digital-asset infrastructure. The product is aimed at institutional investors and is part of a broader push to move cash management on-chain.

CoinDesk reported on May 5 that the firms introduced the State Street Galaxy On-Chain Liquidity Sweep Fund, or SWEEP.

The fund is designed to let institutional investors deposit stablecoins, earn interest income and move funds at any time. Unlike a traditional money-market fund, it runs on blockchain infrastructure 24 hours a day.

SWEEP will launch first on the Solana blockchain and later expand to Ethereum and Stellar. Galaxy is providing the tokenization infrastructure, while State Street manages the traditional assets in the portfolio. Anchorage Digital will serve as custodian for the digital assets.

The launch adds to the expansion of the tokenized-fund market. Alongside products such as BlackRock's tokenized short-term Treasury offering, it highlights the gradual adoption of blockchain-based financial products by institutional investors.

The product will be available only to eligible institutional investors. The launch underscores that tokenized finance remains in the early stages of adoption and is still largely focused on institutions.