Ondo Finance Teams Up with State Street and Galaxy for Solana Tokenized Fund as SEC Ends Probe

Tech

Ondo Finance Teams Up with State Street and Galaxy for Solana Tokenized Fund as SEC Ends Probe

The SWEEP fund is a tokenized private liquidity fund launched by State Street Investment Management, Galaxy Digital, and Ondo Finance, designed to provide institutions with on-chain short-duration liquidity management while maintaining exposure to State Street-managed assets. Debuting on Solana in early 2025, it enhances 24/7 liquidity access for investors.

• Partnership Announcement: State Street, Galaxy Digital, and Ondo Finance collaborate on the innovative SWEEP tokenized fund.
• Ondo Finances OUSG serves as the lead anchor investor, diversifying reserves and improving liquidity for tokenized U.S. Treasury holdings.
• Regulatory Clearance: The U.S. SEC has ended its investigation into Ondo Finance without charges, paving the way for expanded operations in the crypto tokenization space.

What is the SWEEP Fund by State Street, Galaxy Digital, and Ondo Finance？

The SWEEP fund, officially known as the State Street Galaxy Onchain Liquidity Sweep Fund, is a pioneering tokenized private liquidity fund aimed at bridging traditional finance with blockchain technology. Announced by State Street Investment Management, Galaxy Digital, and Ondo Finance, it will launch on the Solana blockchain early next year, targeting institutional investors seeking efficient on-chain liquidity solutions. By tokenizing short-duration assets managed by State Street, the fund offers 24/7 accessibility while integrating with Ondo Finances existing OUSG tokenized U.S. Treasury product as the primary anchor investor.

How Does the SEC‘s Decision Impact Ondo Finance’s Tokenized Assets？

The U.S. Securities and Exchange Commission (SEC) has concluded its multi-year investigation into Ondo Finance without recommending any enforcement actions or charges, marking a significant regulatory win for the company. Launched in October 2023 under former Chair Gary Gensler, the probe examined whether Ondo‘s tokenized U.S. Treasuries and its ONDO token complied with federal securities laws; the dismissal, which occurred quietly last month and surfaced publicly last week, aligns with a broader shift under new Chair Paul Atkins toward fostering innovation in digital assets. This outcome not only clears hurdles for Ondo’s nationwide expansion but also reflects similar dismissals in cases against major players like Coinbase, Ripple, and Kraken, signaling a more mature and less adversarial regulatory environment for the crypto sector. Experts, including legal analysts from firms like Perkins Coie, note that such decisions reduce uncertainty, encouraging greater institutional adoption of tokenized funds. With OUSG already holding a diversified portfolio of institutional-grade assets—including exposure to BlackRock‘s BUIDL, Fidelity’s FDIT, Franklin Templeton‘s BENJI, WisdomTree’s WTGXX, and offerings from Wellington Management and FundBridge Capital—the SEC clearance bolsters confidence in Ondos compliance framework, potentially accelerating similar initiatives across the industry.