Bankless Rollup: Uptober Rally | Tom Lee $1B ETH Buy | Vanguard Flips to Crypto | Stripe Stablecoin Play

Date: October 3, 2025
Hosts: Ryan Sean Adams & David Hoffman
Theme: This episode dives into surging crypto markets (“Uptober”), billion-dollar ETH buys, institutional pivots (notably Vanguard’s crypto flip), Stripe entering stablecoins, TradFi-crypto integrations, explosive DeFi and stablecoin trends, and what it means for the future of both blockchain and mainstream finance.

Episode Overview

The hosts ride high on the green price action of “Uptober,” discuss major shifts in institutional sentiment and participation, and unpack groundbreaking developments in stablecoins, L1 vs L2 chain design, and AI x blockchain intersections. Not only are blue chips ripping, there are tectonic shifts: previously crypto-hesitant players like Vanguard are capitulating, Stripe is aiming to disrupt stablecoin duopoly, and Swift is exploring EVM integrations. The show also spotlights new DeFi power plays (like Tether-backed Plasma), major perp DEX innovations, regulatory scrutiny, stablecoin explosions, and the challenges of crypto ethos in a tradfi world.

Key Segments & Discussion Points

1. Uptober & Crypto Market Rally [00:00–08:19]

• Uptober kicks off: “Prices are high…we’re green. We’re moving up.” – Ryan [00:30]
• Bitcoin up 8% weekly, Ether up 13%, brushing against all-time highs. Global crypto market cap at ~$4.3T, flirting with new highs.
  • David: “When something as large as Bitcoin moves 8%, that is $200 billion...minted out of thin air.” [07:36]
• Bullishness abounds: Hosts split on how soon new highs come, discussing whether we’re set for a blow-off top or a slow “quarter-million dollar Bitcoin” grind by 2026.

2. Macro Backdrop: US Government Shutdown [03:27–06:51]

• First time a US government shutdown has coincided with a crypto bull run during the show’s run.
• Market reaction: Shrugged off—“Crypto prices just started moving…market doesn’t care.” – David [06:14]
• Broader context: Political standoffs, minimal market/Fed impact, government furloughs, likely to resolve with backpay.

3. Market Movers: Zcash’s Explosive Rally [11:11–14:56]

• Zcash ($ZEC), a hybrid privacy coin, is up 42% in a day, 230% over the past month.
• Discussion: Technical strength of Zcash, history of exchange delistings due to regulatory pressures, and debate over privacy as an app vs. asset.
  • “Privacy is not an asset, it is an app… the cryptography behind Zcash: top notch.” – David [13:53]
• ZK themes bubbling: Intrigue about renewed institutional interest in zero-knowledge crypto.

4. Institutional Flips: Vanguard & BlackRock [14:56–16:30]

• Vanguard, the world’s second-largest asset manager, finally bows to client demand, allows access to crypto ETFs after years of “paternalistic” resistance.
  • “They just gave it all to BlackRock… and still had to capitulate… Better late than never.” – Ryan [16:22]
• Cites rising client demand, SEC ETF approvals, and new (BlackRock-aligned) CEO as drivers.

5. Mega Player Activity: Tom Lee’s Billion-Dollar ETH Buys [16:30–19:48]

• Tom Lee continues aggressive ETH accumulation—another $1B buy, 2.2% of supply.
  • Ryan: “Every two weeks he’s putting in a billion dollars. A billion dollars. A billion dollars.” [17:05]
• “Not the flipping I was hoping for, but a flipping of one sort…”—More ETH is held in “DATs” (digital asset treasury companies) than Bitcoin as a percentage of supply. Hosts debate the significance and limits of this metric.
• SEC is probing potential insider trading at some DATs, noting price moves often precede major announcements [21:24].

6. New Chains & The Layer 1 vs Layer 2 Debate: Tether’s Plasma [21:37–32:23]

• Plasma, Tether’s new EVM chain, rockets to 6th by TVL ($6.5bn+ in less than a week, powered by aggressive XPL rewards).
• Hot topic: Why not launch as a Layer 2 (L2)?
  • AJ Warner (Arbitrum) thread cited: L2s save on decentralization/validator costs but don’t get the “L1 premium.”
  • Ryan explains: “For whatever reason, right now the market is assigning a juicy premium to layer one tokens versus layer two.” [28:15]
• David: “That’s how the L1 premium disappears—froth brings low-quality L1 launches until it gets milked and we enter a bear market.” [32:06]

7. Stripe’s Open Stablecoin Issuance & Breaking the Duopoly [32:23–38:35]

• Stripe, via its Bridge acquisition, launches “open issuance,” enabling anyone (wallet, fintech) to roll their own stablecoin.
• Phantom wallet launches ‘Cash’, a native stablecoin, on Stripe infra.
• Why issue your own stablecoin? “They get to dictate the yields…would otherwise go to Tether or Circle.” – David [34:12]
• Prediction: The Circle/Tether duopoly (once ~92% market share) is shrinking; expect stablecoin “explosion” as wallets, exchanges, fintechs each launch theirs—users to get better yields.
  • “All the fintechs are doing this…and this is going to lead to a stablecoin explosion. Hopefully…abstracted, just called dollars.” – Ryan [37:18]

8. TradFi/Crypto Mergers: Cloudflare, Society General, Swift, and More [38:48–53:24]

• Cloudflare launches a stablecoin on Base, using new x402 protocol standard for web payments (fine-tuned for microtransactions, both human and machine/A.I.).
  • “20% of all websites” could soon support this, highlighting Web2 and crypto convergence.
• Societe Generale: Launches euro and dollar stablecoins, integrated with Morpho (lending) and Uniswap (trading) [50:28].
• Swift x Consensys: Global payments juggernaut explores EVM blockchain use with 30 major banks; possible prelude to huge TradFi/crypto integrations. No details yet, but the hosts are bullish on the trendline.
• Meta-story: This quarter is an inflection point for crypto in mainstream finance.

9. Perp DEX Innovation: Lighter & The DeFi Arms Race [44:19–49:19]

• Lighter, a ZK rollup-based perp DEX, launches to challenge Hyperliquid/dYdX. Massive user interest, $800M+ in deposits.
• David explains bridging/onboarding, contrasts ZK guarantees of Lighter vs. black-box L2s like Hyperliquid: “Lighter uses ZK proofs to ensure user property rights. There’s a ZK exit hatch.” [46:50]
• Perp DEXs are red-hot, with varying designs and serious DeFi mindshare.

10. Stablecoins, Regulation, and The Crypto Ethos Debate [53:24–57:17]

• News that Circle is exploring reversible USDC transactions sparks a debate about crypto's immutable “cypherpunk” ideals versus mainstream usability.
  • David: “The important thing…is that if you want all of the cypherpunk ethos, you have that option…will there ever be a cypherpunk-dominant stablecoin? Perhaps no, but it can serve its niche.” [55:00]
• Ryan: “Maybe the future’s just: we have crypto-native assets and RWA-backed stablecoins. The middle hasn’t held.” [56:13]

11. Deep Fakes & Crypto for Authenticity [57:36–61:43]

• OpenAI's “Sora” demonstrates shockingly realistic AI-generated video, amplifying the need for cryptographically verifiable content (data provenance, ZK proofs of authenticity).
• Uma Roy (Succinct): “Urgency to deploy cryptography at scale just 100x…ZK will power the https of reality.” [59:41]
• Hosts remain unconvinced on practical implementation but see it as an urgent, unsolved last-mile problem: “Please help us, we don’t understand.” [61:43]

12. Polymarket, CFTC, and Generational Tensions [61:51–63:45]

• Polymarket’s Shane Copeland gets “flipped off” by the CEO of CME during a CFTC panel after calling him “older.” Lighthearted generational clash moment underscores how much crypto “outsiders” are cracking traditional finance’s doors.
  • “Young crypto startup founder disrupting old Boomer CME founder. You call them old, Boomer flips him off…that’s hilarious.” – David [63:30]

Notable Quotes

• “This is the quarter, man…October, November, December is historically the best time.” – Ryan [09:14]
• “They (Vanguard) just gave it all to BlackRock… and still had to capitulate other people’s products.” – Ryan [16:22]
• “Why is Plasma not a layer two? There’s a juicy L1 premium…market rational to be a layer one.” – Ryan [28:15]
• “The Circle/Tether duopoly will continue to fall…it’s the incentive for a stablecoin explosion.” – Ryan [37:18]
• “Lighter uses ZK proofs to ensure user property rights…there’s a ZK exit hatch for users to withdraw funds.” – David [46:50]
• “The important thing about a blockchain is if you want all the cypherpunk ethos, you have that option. And if you want to strip it away, you have that option too.” – David [55:00]
• “ZK will power the https of reality.” – Uma Roy, quoted by David [59:41]
• “You call them old and Boomer flips him off…that’s hilarious.” – David [63:30]

Timestamps for Major Segments

• Markets & Uptober: 00:00–08:19
• Gov’t Shutdown Macro: 03:27–06:51
• Zcash Rally: 11:11–14:56
• Vanguard Flips Crypto: 14:56–16:30
• Tom Lee ETH Buys: 16:30–19:48
• Plasma/L1-vs-L2: 21:37–32:23
• Stripe Stablecoins: 32:23–38:35
• Cloudflare, SocGen, Swift, TradFi-crypto: 38:48–53:24
• Lighter Perp DEX: 44:19–49:19
• Stablecoin Regulation/Ethos: 53:24–57:17
• AI Deep Fakes/Crypto Provenance: 57:36–61:43
• Polymarket Gets Flipped Off: 61:51–63:45

Tone

The episode is exuberant, irreverent, sometimes conspiratorial, always crypto-native—but grounded in real finance. The hosts blend technical analysis, regulatory/political awareness, and banter. There’s humility about unknowns, and excitement about the scale and trajectory of adoption.

For those who didn’t listen, this episode covers the pivotal developments defining crypto’s future, from price action and institutional adoption to technical and regulatory frontiers, with an eye toward what’s bullish, what’s broken, and what just might be next.