Key Highlights
- Ondo, State Street, and Galaxy unveil plans for SWEEP, a tokenized liquidity fund on Solana.
- OUSG would anchor the fund, expanding its 24/7 liquidity and reserve diversification.
- The move follows the SEC’s closure of a two-year probe into Ondo, clearing the path for U.S. expansion.
Ondo Finance, State Street Investment Management, and Galaxy Asset Management announced on December 11 their plan to launch SWEEP, a private tokenized liquidity fund set to debut on Solana in early 2026. The fund aims to bring traditional cash-management strategies on-chain.
Ondo confirmed that its flagship product, OUSG, will serve as the anchor investor, expanding its reserves and deepening 24/7 liquidity for holders. The announcement comes days after the U.S. SEC closed its two-year investigation into Ondo, clearing the firm to accelerate its U.S. tokenization initiatives.
SEC clears Ondo’s expansion
The announcement follows a major regulatory milestone. On December 8, the U.S. Securities and Exchange Commission (SEC) formally ended its two-year investigation into Ondo Finance, issuing a notice of closure with no charges. The probe examined Ondo’s treasury tokenization products and whether the ONDO token fell under securities rules.
Ondo said the closure gives “a clear path forward” for U.S. securities tokenization, matching the SEC’s shift toward a more supportive approach to RWAs.
Why SWEEP matters for investors
SWEEP is designed as a tokenized money-market instrument, giving institutions a way to manage short-duration liquidity on-chain while maintaining exposure to State Street-managed assets. Ondo President Ian De Bode said the initiative represents “a major leap forward” in connecting traditional finance to the on-chain economy.
State Street executives echoed the sentiment. Kim Hochfeld, Global Head of Cash and Digital Assets, described the partnership as an example of how “TradFi and DeFi players unite to push the next frontier of asset management.”
For OUSG holders, SWEEP would enhance liquidity, diversify reserves, and broaden access to institutional cash assets alongside 24/7 Nexus settlement.
Tokenized funds across Wall Street
The institutional race toward tokenized money-market funds has accelerated through 2024 and 2025. In September, Fidelity launched FDIT, a fully tokenized Treasury fund backed almost entirely (over 99%) by Ondo’s OUSG.
That product joined BlackRock’s BUIDL, Franklin Templeton’s BENJI, WisdomTree’s WTGXX, and Wellington’s ULTRA as major entrants into the tokenized liquidity sector.
With the SEC probe closed and OUSG expanding across major chains, Ondo is positioning itself at the center of the tokenization wave. SWEEP’s 2026 debut will test how fast institutions adopt multi-manager, on-chain cash solutions.
Also read: Ondo Finance Demands Clear Rules for Digital Asset Securities from SEC
