State Street and Galaxy Digital Tokenize Private Liquidity Fund on Solana with Ondo Seed
A Historic Institutional Tokenization Milestone
On December 10, 2025, State Street Investment Management and Galaxy Digital announced a groundbreaking partnership to tokenize a private liquidity fund. The fund, named the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), will debut on the Solana blockchain in early 2026, with additional blockchain integrations planned for the future, including Stellar and Ethereum.
Ondo Finance has committed a planned seed investment of approximately $200 million to provide initial liquidity and help scale the fund. This is one of the first times a top-tier asset manager like State Street (managing over $4 trillion in assets) has tokenized a private fund on a public blockchain.
Why Solana First? Speed, Scalability, and Institutional Readiness
Solana was selected for its high throughput, low fees, and proven track record with institutional-grade tokenized products. The fund will use PayPal USD (PYUSD) for subscriptions and redemptions, enabling 24/7 on-chain liquidity. Chainlink will provide cross-chain interoperability for future expansions.
The tokenized shares will offer:
- 24/7 trading and redemption
- Greater transparency
- Use as collateral in DeFi
- Access for qualified purchasers
This brings traditional private market liquidity to a broader institutional audience while maintaining full regulatory compliance.
The Bigger Picture: Institutional RWAs Gain Momentum
Stellar already hosts over $639 million in tokenized RWAs (94.8% in U.S. Treasuries), with funds like Franklin Templeton’s BENJI at $849 million. While SWEEP launches on Solana, the planned Stellar integration will further strengthen the network’s position as a leading platform for compliant, scalable tokenization.
As the tokenized asset market grows toward $16 trillion by 2030, partnerships like this signal that major financial institutions are moving on-chain.
What This Means for the Future of Finance
For $XLM holders, the planned Stellar integration is exciting validation of the network’s role in institutional RWAs. More tokenized funds mean more network activity and fees paid in Lumens. Platforms like Lumexo make it easy to trade $XLM with low fees.
In short, State Street and Galaxy’s tokenized fund is a clear signal: the biggest players in finance are embracing blockchain – and Stellar is part of that future.