Ondo Finance Teams With State Street & Galaxy to Launch SWEEP, Solana-Based Liquidity Fund for 2026
Ondo Finance has teamed up with State Street Investment Management and Galaxy Asset Management to roll out SWEEP, a private tokenized liquidity fund designed to bring traditional cash management onchain.
OUSG, Ondo’s flagship tokenized fund, will act as the lead anchor investor in SWEEP, helping diversify reserves while providing OUSG holders with round-the-clock liquidity. Information from Ondo Finance’s official X page confirms these developments and outlines the fund’s mechanics and goals.
Ondo Price and Token Get a New Dimension With SWEEP
ONDO token is central to understanding this move. OUSG will seed SWEEP with about $200 million, linking Ondo token holders to a broader pool of liquidity. SWEEP leverages PayPal’s PYUSD stablecoin for subscriptions and redemptions, enabling 24/7 liquidity as long as portfolio holdings are available. Qualified Purchasers meeting eligibility criteria can access the fund, providing a bridge between traditional finance expertise and blockchain technology.
SWEEP, short for State Street Galaxy Onchain Liquidity Sweep Fund, aggregates stablecoin liquidity from multiple institutional treasury funds. OUSG’s involvement allows holders of Ondo token to indirectly tap into these assets. Funds from some of the world’s leading asset managers, including BlackRock’s BUIDL, Fidelity’s FDIT, and Franklin Templeton’s BENJI, will feed into SWEEP. This design expands the utility of ONDO token while building a diversified exposure for Ondo price stability.
Ondo Finance has joined with State Street Investment Management and Galaxy Asset Management to announce plans for SWEEP, a new private tokenized liquidity fund bringing traditional cash management onchain.
— Ondo Finance (@OndoFinance) December 11, 2025
OUSG, Ondo’s flagship tokenized fund, plans to serve as the lead anchor… pic.twitter.com/YM8yCRbVhc
According to the tweet, SWEEP will debut on Solana in early 2026, with future support for Stellar and Ethereum blockchains. Chainlink integration ensures cross-chain interoperability, complementing OUSG’s existing presence across Ethereum, Solana, Ripple, and Polygon.
Ondo token holders benefit from low fees, daily interest accruals, and instant subscriptions and redemptions. This approach enhances liquidity and makes Ondo price movements more responsive to market dynamics.
Strategic Partnerships Bring Traditional Finance Expertise Onchain
State Street Bank and Trust Company will act as custodian for treasury holdings, while Galaxy’s digital infrastructure underpins fund operations. Kim Hochfeld from State Street emphasized how SWEEP represents a fusion of TradFi and DeFi for the next generation of asset management.
Galaxy’s Steve Kurz described it as a game-changer for onchain cash options, and Ondo’s Ian De Bode noted tokenization’s role in open finance.
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Despite its innovative design, SWEEP carries traditional money market risks. Investors may encounter low yields in low-rate environments, focused treasury exposure, and counterparty defaults in repurchase agreements. ONDO token holders should be aware that the fund is not FDIC insured, and reviewing the private placement memorandum is crucial before participation.
SWEEP positions Ondo token at the intersection of blockchain and institutional cash management. Ondo Finance aims to create a model where tokenized liquidity meets professional asset management. The launch on Solana in 2026 marks a notable step toward a future where open finance integrates seamlessly with traditional financial systems.
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