The post Ondo Finance Teams Up with State Street and Galaxy for Solana Tokenized Fund as SEC Ends Probe appeared on BitcoinEthereumNews.com. The SWEEP fund is aThe post Ondo Finance Teams Up with State Street and Galaxy for Solana Tokenized Fund as SEC Ends Probe appeared on BitcoinEthereumNews.com. The SWEEP fund is a

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

2025/12/12 11:22
  • Partnership Announcement: State Street, Galaxy Digital, and Ondo Finance collaborate on the innovative SWEEP tokenized fund.

  • Ondo Finance’s 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.

Discover the SWEEP fund: State Street, Galaxy Digital, and Ondo Finance’s tokenized liquidity solution on Solana. Explore how this partnership boosts institutional on-chain access and follows SEC clearance for Ondo. Stay ahead in crypto finance—read more now. (152 characters)

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 Finance’s 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 Ondo’s compliance framework, potentially accelerating similar initiatives across the industry.

Frequently Asked Questions

What is the role of Ondo Finance in the SWEEP fund partnership?

Ondo Finance acts as a key collaborator, providing its OUSG tokenized fund as the lead anchor investor to diversify reserves and enhance 24/7 liquidity for holders. This integration allows SWEEP to connect on-chain money-market instruments with established State Street assets, fostering seamless access for institutional participants in the tokenized economy. (48 words)

Why did the SEC end its investigation into Ondo Finance without charges?

The SEC’s decision to close the probe stemmed from a thorough review confirming Ondo Finance’s adherence to securities regulations regarding its tokenized U.S. Treasuries and ONDO token. Under the new leadership of Chair Paul Atkins, this reflects a pivot toward supportive oversight that promotes crypto innovation while ensuring investor protection—perfect for voice queries on regulatory shifts in blockchain finance.

Key Takeaways

  • Innovation in Tokenization: The SWEEP fund exemplifies how partnerships like State Street, Galaxy Digital, and Ondo Finance are tokenizing traditional assets for on-chain efficiency, starting with Solana deployment in early 2025.
  • Regulatory Progress: The SEC’s dismissal of charges against Ondo Finance, following a probe since 2023, highlights evolving U.S. policies under Paul Atkins, mirroring outcomes for Coinbase and Ripple.
  • Institutional Benefits: Investors gain enhanced liquidity through OUSG’s integration with SWEEP, spanning trusted managers like BlackRock and Fidelity—consider monitoring these developments for portfolio diversification opportunities.

Conclusion

The partnership between State Street Investment Management, Galaxy Digital, and Ondo Finance to launch the SWEEP fund represents a pivotal advancement in tokenized private liquidity solutions, enabling institutions to navigate on-chain markets with greater ease and security. Coupled with the SEC’s recent closure of its investigation into Ondo Finance without charges, this development underscores a maturing landscape for blockchain-based finance, where regulatory clarity supports innovation. As tokenized assets continue to integrate traditional and decentralized systems, stakeholders should watch for SWEEP’s Solana debut early next year, positioning it as a cornerstone for future institutional adoption in the crypto ecosystem.

Source: https://en.coinotag.com/ondo-finance-teams-up-with-state-street-and-galaxy-for-solana-tokenized-fund-as-sec-ends-probe

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