Stellar to Power State Street and Galaxy’s Yield-Bearing Onchain Fund

• The State Street Galaxy Onchain Liquidity Sweep Fund plans an expansion to the Stellar and Ethereum networks.
• The fund will enable around-the-clock onchain cash management for large players.

The Stellar network has confirmed that the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP) will be launched on its network.

Created by State Street Investment Management and Galaxy Asset Management, SWEEP is a tokenized cash management fund. Running on blockchain technology, SWEEP enables around-the-clock access. Furthermore, the fund allows institutional participants to earn yield on stablecoins while moving cash on-chain.

The fund is launching on the Solana blockchain, with plans to expand to the Stellar and Ethereum networks.

Why is SWEEP Expanding to Stellar?

Wall Street is increasingly embracing blockchain technology because it offers key benefits such as scale, cheap fees, and around-the-clock access to move assets. Different companies are taking varying approaches with bets across multiple blockchain networks. Stellar offers some distinct advantages.

As ETHNews reported, MoneyGram is one of the companies that has chosen Stellar to build the financial infrastructure. Praising its technological prowess, MoneyGram’s CTO said that they chose Stellar because they trusted it, it was reliable, it was fast, it had low transaction fees, and it got regular updates.

Stellar’s success is further highlighted by its track record with Franklin Templeton. The financial giant launched Franklin OnChain U.S. Government Money Fund (FOBXX) on the network in 2021. Using token ticker BENJI, the fund now has $638M of asset value on Stellar.

The launch of these funds is a clear indication that Stellar is among the elite blockchain networks and the preferred choice for Wall Street.

Speaking at the Milken Institute Global Conference, Stellar Development Foundation CEO Denelle Dixon said that tokenization is taking centre stage on Wall Street. She noted that it was not “breaking” banking rails, but improving them.

The network is working behind the scenes to improve on its current success. As ETHNews reported earlier, the Stellar Foundation is investing $1 million in Ascend. The project plans to advance the development of compliance-first credit infrastructure for regulated real-world assets (RWAs) on Stellar.

XLM Eyes a 20% Rally

At the time of writing, Stellar’s XLM is trading for $0.1627 after a 3% rally in the last 24 hours. Although the network has celebrated key adoption milestones, prices have been locked in a well-defined channel since February.

In the short term, holders will be watching the $0.179 resistance level. If it’s finally broken, this will trigger a 20% rally to $0.22. But another rejection will trigger a retreat to the $0.147 support.

In the long term, holders expect a return to its $0.9381 all time high, reached nearly 8 years ago.

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