State Street’s Tokenization Breakthrough: SWEEP Fund Lands on Solana Blockchain
A major Wall Street player just made its move—and it's betting on speed.
Institutional On-Chain Liquidity, Unleashed
State Street's landmark SWEEP fund tokenization cuts through traditional settlement delays. By porting a core cash management product to Solana, the firm bypasses legacy financial plumbing entirely. Transactions that once took days now settle in seconds, unlocking capital efficiency that legacy systems can't match.
Why Solana Won This Round
The blockchain's high throughput and low fees made it the logical rails for a product built for constant movement. It's a technical choice that signals a preference for performance over pedigree—a quiet jab at the old guard's sluggish, fee-heavy infrastructures.
This isn't an experiment; it's an operational shift. The move validates tokenization as a utility play first, transforming a foundational financial service into a seamless, 24/7 digital asset. One step closer to making traditional finance's 'business days' look like a relic.
Source: X (formerly Twitter)
What Is the SWEEP Fund and Why It Matters
The SWEEP, or State Street Galaxy Onchain Liquidity Sweep Fund, is a tokenized private liquidity fund that will go live on solana first in early 2026. All deposits and withdrawals within the fund will be made using PYUSD, PayPal's stablecoin issued by Paxos, thereby allowing investors to bring money into and take money out of the fund at any time-a loophole in traditional markets.
The team is expected to reveal additional information live at the Solana Conference in Abu Dhabi, where Galaxy CEO Mike Novogratz will speak with Solana's Mert Mumtaz.
Key Facts about SWEEP:
Uses PYUSD subscriptions and redemptions.
Institutions only. Limited to Qualified Purchasers.
Seeded w/ $200 m from Ondo Finance
Live on Solana, and plans for further expansion to Stellar (XLM) and Ethereum (ETH).
Galaxy will bridge assets and data across chains with the help of Chainlink tools.
State Street terms this partnership as a reflection of the rapidly shifting relationship between banks and blockchain companies. Galaxy describes tokenization as the “bridge” between traditional finance and the onchain economy.
This greatly scales up it's capabilities across real-world assets, stablecoin settlements, and institutional-grade financial products.
Solana Price Update: Why SOL Dropped Today
While long-term news remained positive, as per the CoinMarketCap, Sol was down 5.86% in the last 24 hours to $131.03. The fall came from the immediate pressure in the markets and not some weakness inside the ecosystem.
Source: CMC
A brief look at what pushed SOL price down:
The Fear & Greed Index currently is 29, showing nervous sentiment. Traders moved money from altcoins back into Bitcoin, raising BTC dominance.
The SOL broke below key support at $132.83, with momentum indicators reflecting cooling strength.
After a hot wallet problem, Upbit moved almost all the assets of SOL to cold storage to add some short-term caution. Even with this drawdown, long-term prospects remain excellent for the blockchain, given its growing ecosystem and increasing institutional interest.
Solana Price Prediction: What Comes Next?
Below is solana price prediction post sweep launch news
If SOL can continue to hold above $130 and the market bounces better following U.S. CPI data, then it can reclaim $141 for a MOVE towards $155–$165. This could be aided by news regarding State Street Tokenization.
If SOL slides below $130, it WOULD head towards $122. Continuous negative funding rates and market fear may continue to squeeze the altcoins.
Disclaimer: This article is for informational purposes only and not a financial advice, kindly do your own research before investing.
