In a move to rival BlackRock’s BUIDL, Galaxy has partnered with State Street to launch "Sweep," a tokenized money market fund on Solana. The product is designed to solve one of the most persistent inefficiencies in the digital asset market: the lack of yield on idle stablecoins due to U.S. regulatory constraints. By structuring the product as a money market fund that instantly redeems into PayPal’s PYUSD, the firms are effectively creating an interest-bearing cash equivalent that remains compliant with current securities laws. Novogratz positioned this as a tool for global "unbanking," targeting users in regions like South Asia and Africa who require access to U.S. Treasury yields without traditional banking friction.

The launch coincides with what Mike Novogratz describes as a "radical 180-degree turn" by the U.S. Securities and Exchange Commission (SEC). Following the exit of Gary Gensler, the new administration has reportedly signaled a desire to move financial assets on-chain. Galaxy is currently in discussions to secure a "sandbox exemption" that would allow their tokenized equity—currently trapped in the "walled garden" of Superstate—to trade on decentralized platforms. This regulatory pivot marks a transition from the industry's "narrative phase" to a "utility phase," where infrastructure must support real-world volume rather than just speculative storytelling.

Despite the institutional progress, Novogratz offered a sober assessment of recent market volatility. He revealed that Galaxy facilitated the sale of $9 billion in Bitcoin for a single client following the asset's run to $100,000. This massive profit-taking event by early adopters ("old people") is currently being absorbed by new entrants, primarily U.S. wealth managed by Registered Investment Advisors (RIAs). Novogratz argues that while this capital rotation creates short-term price chop, the long-term trajectory is secured by the entry of giants like State Street and the technical readiness of high-throughput chains like Solana.