KETJU Research

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tokenized-rwa

State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP)

Adverse research finding
Research assessment
adverse
Firm shelf
research only
Model-client eligibility
ineligible
Selection
not considered
Action and amount
Not set by research
Reviewed
2026-09-24 · v1
Next review
2026-12-24
Research basis
Individual research
Chains
Solana · crypto-backed
Symbols
SWEEP

Research, firm shelf, model-client eligibility, and advisor selection are recorded separately. The scheduled date is the outside bound; new evidence can reopen the file sooner.

SWEEP is a private cash fund that State Street Investment Management manages and Galaxy tokenizes on Solana. Holders subscribe and redeem in PayPal’s PYUSD stablecoin at any hour, but only while the fund holds enough PYUSD to pay. It launched on 5 May 2026 through two vehicles, a Delaware LLC and a Cayman company, whose Form Ds, filed the day before, report no sales and no investors. Ondo said its OUSG fund planned to seed SWEEP with about $200 million. Both Form Ds claim Rule 506(c) and the Investment Company Act section 3(c)(7) exclusion, so only qualified purchasers may buy. The onshore Form D gives a $0 minimum; the offshore one gives $100,000. Galaxy Digital Partners, Galaxy’s broker-dealer, is the placement agent. Neither sponsor has published the token’s contract address, an offering memorandum, or a fund page, so Ketju cannot read who controls the token or quote the terms. The assessment is adverse. Model clients are not qualified purchasers, and the fund offers no terms a reader can check beyond two press releases and two empty Form Ds.

The research file

What the fund is

State Street’s launch release calls SWEEP “a tokenized private liquidity fund designed to enable 24/7 onchain cash management via stablecoin, subject to availability of stablecoin in the fund’s portfolio.” SSGA Funds Management is the investment manager on both Form Ds. State Street Bank and Trust holds the fund’s securities; Anchorage holds its stablecoins; NAV Consulting is transfer agent; Galaxy publishes a daily NAV on chain through Chainlink. The December 2025 announcement named State Street Bank as custodian “for the fund’s treasury holdings.” No document read lists the portfolio, the fee, or the NAV. As a private fund relying on section 3(c)(7), SWEEP is not a registered money market fund and is not bound by Rule 2a-7’s limits on maturity, quality, and liquidity; any such limits would sit in the memorandum, which is not public.

Who may hold, and how money gets out

The onshore fund is State Street Galaxy Onchain Liquidity Sweep Onshore Fund, LLC (Delaware, SEC CIK 2130185); the offshore fund is State Street Galaxy Onchain Liquidity Sweep Offshore Fund, Ltd. (Cayman Islands, CIK 2130288). Both filed Form Ds on 4 May 2026 claiming Rule 506(c) and section 3(c)(7), with first sale yet to occur, $0 sold, and 0 investors. The onshore minimum is $0 and the offshore $100,000; the releases say buyers must be “Qualified Purchasers that meet certain eligibility criteria and minimum investment amounts.” Both Form Ds name Galaxy Digital Partners LLC (CRD 289605) as placement agent. Money goes in and comes out in PYUSD, “subject to portfolio availability”; the public documents do not say how or when a holder is paid when the fund’s PYUSD runs short.

Who controls the token

Galaxy says its “Digital Infrastructure” issues and manages SWEEP tokens on Solana, with Stellar and Ethereum planned. Neither Galaxy nor State Street has published the mint address. Two Solana mints use the ticker: FDaJx…Uv7X, named SWEEP, and 9GWok…4Ch9, named “State Street Liquidity Fund.” Both have no mint authority, no freeze authority, and a fixed supply near one billion, and their metadata points at hosts unrelated to either sponsor. A permissioned fund token needs an issuer able to mint, freeze, and restrict holders, so neither is the fund. Until the real mint is published, Ketju cannot say who holds its keys.

Comparison and decision

A qualified purchaser who wants cash yield on chain can hold tokenized Treasury funds whose contracts, keys, and terms are published and read, such as BlackRock’s BUIDL and Superstate’s USTB. SWEEP may prove to be a strong product with a large anchor holder, but today it offers a ticker and a promise of 24/7 PYUSD liquidity that depends on the fund’s own PYUSD balance. The assessment is adverse; the program stays research-only, with no eligibility file until the token is published, and it is ineligible for model clients because they are not qualified purchasers.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The most administered layer sets the position’s effective control grade; that is a control description, not a quality or suitability score.

ChainVerdictGradeControl constraint
SolanaFavorable with conditions crypto-backed no admin key can seize funds, but stake concentration and a sub-25 Nakamoto coefficient are the standing watch items.
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