Quick Breakdown
- State Street Global Advisors and Galaxy Digital unveil plans for a tokenized money market fund on Solana, set to launch in 2026.
- The fund will offer institutions on-chain access to short-term liquidity with daily yield accrual and redemptions.
- Partnership leverages Solana’s high-speed infrastructure to bridge traditional finance with blockchain-based assets.
State Street Global Advisors and Galaxy Digital announced a collaboration to introduce a tokenized liquidity fund built on the Solana blockchain, scheduled for launch in 2026. The initiative aims to provide institutional investors with efficient on-chain access to money-market-like products. This move marks a significant step in real-world asset (RWA) tokenization, combining State Street’s custody expertise with Galaxy’s digital asset infrastructure.
BREAKING NEWS: For the first time in history, a GSIB will issue assets on Solana — before any other network or its own private rails 🔥@StateStreet, with $50 trillion in custodied assets, is tokenizing SWEEP in partnership with @galaxyhq pic.twitter.com/BvoV8Fr8aC
— Solana (@solana) December 11, 2025
The fund will enable daily yield accrual and redemptions, addressing key liquidity demands in tokenized markets. Built on Solana, it benefits from the network’s low-cost, high-throughput capabilities, which support scalable institutional-grade applications. Galaxy will handle tokenization and distribution, while State Street manages the underlying portfolio of cash equivalents.
Solana gains traction in institutional tokenization
Solana’s selection underscores its growing appeal as an enterprise blockchain solution, following recent integrations by firms such as Kraken and Taurus. The network’s performance aligns with growing RWA demand, where tokenized treasuries and funds have surged past $5 billion in total value locked. This fund positions Solana ahead of Ethereum in speed-sensitive applications, potentially accelerating TVL growth.
State Street’s entry reflects broader TradFi adoption, amid regulatory clarity under the current administration. CEO Ron O’Hanley emphasized blockchain’s role in reducing settlement times from days to minutes. Galaxy co-founder Mike Novogratz highlighted the partnership’s focus on compliant, yield-bearing products for pensions and endowments.
Strategic implications for DeFi and RWAs
Tokenized funds like this could unlock trillions in sidelined capital, with analysts projecting RWAs of $10 trillion by 2030. Challenges remain, including oracle reliability and cross-chain interoperability, but Solana’s ecosystem is bolstered by tools like Everstake, which offers robust staking and custody options. Compared to competitors, this fund prioritizes U.S.-regulated assets, differentiating it from offshore offerings.
Notably, the investment arm of Abu Dhabi’s sovereign wealth fund, Mubadala Capital, has partnered with Kaio Technologies to tokenize private-market strategies. This collaboration is designed to use blockchain technology to provide institutional investors, especially those in the UAE, with onchain access to traditionally illiquid assets, such as private equity and venture capital. This initiative will enhance the liquidity, transparency, and accessibility of these previously restricted assets. It aligns with the UAE’s strategic vision for integrating digital assets and reflects a growing global trend of sovereign interest in Real-World Assets (RWAs). This move is a strong signal of blockchain’s shift from a tool for mere speculation to a foundational element of finance, likely to attract significant subsequent capital.
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