Breakpoint 2025: Fireside: Galaxy's Mike Novogratz: Galaxy (Mike Novogratz), Helius (Mert Mumtaz)

That's true.

Yeah, so Sweep is State Street's, you know, $5 trillion dollar asset manager version of BlackRock's BUIDL. It's a tokenized money market fund with some key differences. The biggest difference is instantly when you redeem, it gives you PayPal's stablecoin, PYUSD. So if you think about what should happen in the world, you should have interest-bearing cash. That's in the US right now illegal, right? The stablecoin bill is said not happening. But if you have a money market fund that redeems into a stablecoin, it's roughly the same thing. And so I envision a world where people, not necessarily in the United States but broadly around the world, are carrying US Treasury money market fund Sweep, and when they want to spend it, they flip it into a stablecoin and spend it. So instead of carrying cash in your wallet that gives you no interest, you're getting paid on everything you own. And that is the trend in crypto.

You guys went public. We were the first tokenized equity that the SEC approved. There's lots of forms of tokenized equities. There are Xshares in some different exchanges, but working with the SEC in the US to get an SEC-sanctioned tokenized equity is what we did first. It trades on a thing called Superstate, which quite frankly is a walled garden right now. So it's exciting that we did it, but it's not that exciting for liquidity because it's trade by appointment in some ways. What will happen soon, and this is the real exciting part, is that the SEC in the US has taken a complete 180-degree turn from the old SEC. The era of Gary Gensler ended. This new administration says we want everything to move on chain. I was like, excuse me, we want everything to move on chain. And I'm not even sure they knew what they said when they said it, but they're heading that direction. It is a radical, radical departure. It is awesome for this industry. And so we're hoping soon, and we're in discussions all the time. I was actually with Paul Atkins two weeks ago, to get a, what do they call it, the sandbox exemption, to actually try to see our tokenized stock start to trade on decentralized platforms. And that, I think, will be a radical shift. What's going to happen with tokenization? There's a lot of talk about tokenization right now. There's two pieces to it. There's one piece which is efficiency, yada yada yada. That's very important, right? For collateral management, for settlement, for all these things, you're going to tokenize equities. But the bigger piece really is for access. And it's mostly access in the rest of the world. I love coming to this place because I can put a pin in Abu Dhabi and then do a 500-mile circle and you see what it encompasses. There's a tremendous amount of population in South Asia, in Africa, in the Middle East. It's those populations that are going to benefit most from both stablecoins and tokenization. You're going to have the young kid in Paraguay who wants to buy some Apple stock or some SpaceX token that never had access to it. And so you're going to see companies like Galaxy hopefully be the banker, the conduit between these brands that you've heard of, big US capitalized companies, big US credit businesses or credit products, tokenize it and have it distributed to the six billion, seven billion people in the rest of the world.