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- Ondo, State Street, and Galaxy will launch SWEEP, a tokenized liquidity fund on Solana in 2026.
- OUSG will anchor the fund, boosting institutional liquidity and reserve diversification.
- SEC closure of the Ondo probe opens the door for broader U.S. tokenization efforts.
Ondo Finance is accelerating its push into institutional tokenization after announcing a major new partnership alongside State Street Investment Management and Galaxy Asset Management. The three firms revealed plans for SWEEP, a private tokenized liquidity fund scheduled to launch on Solana in early 2026, positioning it as a next-generation cash-management vehicle for global institutions.
The move marks one of the most significant TradFi–DeFi collaborations to date, pairing State Street’s asset-management scale with Ondo’s on-chain infrastructure and Galaxy’s digital-asset expertise.
SEC Clears Path for Ondo’s U.S. Expansion
The timing of the announcement is notable. Just days earlier, the U.S. Securities and Exchange Commission closed its two-year investigation into Ondo Finance without recommending any enforcement action. The probe centered on Ondo’s tokenized treasury products and whether its ONDO token met securities criteria.
With the closure, Ondo now has what it calls “a clear path forward” for U.S. tokenization efforts — a development that aligns with the SEC’s recent shift toward a more structured, supportive framework for real-world assets (RWAs).
This regulatory green light sets the foundation for SWEEP’s launch, enabling Ondo to scale its institutional offerings more aggressively across U.S. markets.
SWEEP: A Tokenized Liquidity Fund for 24/7 Cash Management
Designed as a tokenized money-market instrument, SWEEP will offer institutions short-duration liquidity exposure backed by State Street-managed assets. The product aims to replicate traditional cash-management strategies while enabling full on-chain settlement, interoperability, and real-time liquidity movement.
Ondo confirmed that OUSG, its flagship tokenized U.S. Treasuries product, will serve as the anchor investor. The integration expands OUSG’s reserves, enhances 24/7 liquidity, and deepens access for institutions using Nexus settlement rails.
Ondo President Ian De Bode called SWEEP “a major leap forward” in bridging traditional finance with on-chain capital markets. State Street executive Kim Hochfeld said the initiative shows how established financial institutions and crypto-native firms can “push the next frontier of asset management” together.
Wall Street’s Tokenization Race Intensifies
SWEEP arrives as competition in the tokenized money-market sector accelerates. Fidelity’s FDIT — launched in September and backed almost entirely by OUSG — joined a growing roster of institutional tokenized funds including BlackRock’s BUIDL, Franklin Templeton’s BENJI, WisdomTree’s WTGXX, and Wellington’s ULTRA.
With regulatory uncertainty clearing and its products gaining adoption across multiple chains, Ondo is positioning itself at the center of Wall Street’s tokenization pivot. SWEEP’s 2026 debut will test how quickly institutions embrace multi-manager, on-chain liquidity solutions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
