Ondo, State Street & Galaxy Launch SWEEP: Tokenized Private Liquidity Fund Breaks Wall Street Barriers

Wall Street just got a blockchain upgrade. Ondo Finance, the real-world asset tokenization heavyweight, has teamed up with custody giant State Street and crypto powerhouse Galaxy Digital to launch SWEEP—a tokenized private liquidity fund that's slicing through traditional finance's red tape.

The Institutional On-Ramp

This isn't another DeFi experiment. SWEEP is built for institutions, leveraging State Street's ironclad custody and Galaxy's deep crypto markets expertise. The fund tokenizes private credit and treasury strategies, offering a digital wrapper for assets that are typically locked away from most investors. It's a direct pipeline from the old world to the new.

Liquidity, Unlocked

The core promise? Turning illiquid private market exposure into something you can actually move. Tokenization cuts settlement times from days to minutes and bypasses a small army of intermediaries. For the first time, qualified investors might get private fund exposure without the usual headache of paperwork and multi-week transfer processes—imagine that.

A Quiet Revolution

This partnership signals a shift. It's not about replacing banks; it's about making their most lucrative products more efficient and accessible. Ondo provides the tokenization rails, State Street guards the keys, and Galaxy ensures it all connects to the crypto economy. The model is so sensible it almost makes you wonder why traditional finance spent decades building slower, more expensive systems. Almost.

The final take? Watch where the big money flows. When names like State Street start putting traditional assets on-chain, the 'crypto experiment' phase is over. The race to digitize the global balance sheet just found its frontrunner.

Ondo Finance launches new product

SWEEP is designed as a tokenized money-market instrument that will provide institutions with a way to manage short-duration liquidity on-chain while maintaining exposure to State Street-managed assets. 

OUSG currently holds a diversified basket of institutional tokenized U.S. Treasury funds, and aggregates 24/7 stablecoin liquidity available across many of them, making the liquidity accessible both to OUSG holders and, through Ondo Nexus, to holders of those third-party funds.

“With a planned investment in SWEEP, OUSG’s portfolio WOULD span funds from the world’s most trusted asset managers, including BlackRock’s BUIDL, Fidelity’s FDIT,  Franklin Templeton’s BENJI, WisdomTree’s WTGXX,  Wellington Management and FundBridge Capital’s ULTRA,” Ondo Finance’s post on X read. “We look forward to continuing our collaboration with State Street, Galaxy, and the growing community of institutions building the next generation of global financial infrastructure.” 

Ondo President Ian De Bode called the initiative “a major leap forward” as it facilitates the connection of traditional finance to the on-chain economy. 

State Street executives also shared similar thoughts, with Kim Hochfeld, Global Head of Cash and Digital Assets, describing the partnership as an example of how “TradFi and DeFi players unite to push the next frontier of asset management.”

The U.S. SEC stopped investigating Ondo 

According to reports, the SEC has ended its multi-year investigation into Ondo Finance to determine whether the firm’s tokenized US Treasuries and ONDO token violated securities laws, and it did so without recommending any charges.

Experts have said the decision clears a path for Ondo to expand its operations nationwide. 

The dismissal happened without fanfare last month, but the news did not become public until last week. The probe by the SEC had been running since October 2023, under the leadership of former Chair Gary Gensler, and it was focused on making sure the firm had complied with securities laws.

Gensler has since stepped down to be replaced by Paul Atkins, who runs a much more liberal ship, encouraging innovation and a more mature regulatory landscape. 

The dismissal of the Ondo probe exemplifies its ongoing rollback of several high-profile cases, and it is not the only high-profile case in the crypto industry to get kicked out of court. Others like Coinbase, Ripple, and Kraken have also seen SEC enforcement action against them dropped.

Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.