CRYPTO 101 Ep. 698: How Yield Generation will Lead Crypto's Mass Adoption with Galaxy

Air Date: January 6, 2026
Hosts: Bryce Paul & Brendan Viehman
Guest: Zach Prince, Managing Director—Head of Wealth, Galaxy

Episode Overview

This episode explores the intersection of yield generation and crypto mass adoption, focusing on the strategies, products, and shifting regulatory climate that could make crypto attractive to a wider audience. Zach Prince, the former founder of BlockFi and now managing director at Galaxy and head of their new Galaxy One product, joins Bryce and Brendan for a wide-ranging discussion on market cycles, institutional and retail trends, and how cutting-edge products are bridging the gap between traditional and crypto finance.

Key Discussion Points

Zach Prince’s Background and Lessons Learned

[02:11–05:09]

• Zach’s journey began as a semi-pro poker player in Texas, followed by a move into the fintech and ad-tech startup world.
• His early blogging about fintech in 2014 led to his “aha moment” on Bitcoin’s disruptive potential.
• Founded BlockFi in 2017, focusing on crypto-backed loans, interest accounts, and eventually the world’s first Bitcoin rewards credit card.
• Galaxy was an early investor and credit provider to BlockFi.
• BlockFi's dramatic rise ended with the FTX collapse and eventual bankruptcy in 2022, after which Zach briefly led a real estate firm before returning to crypto with Galaxy.

Memorable Quote:

“Out of the ashes of FTX, a phoenix rose.” – Bryce [05:09]

Lessons learned from BlockFi collapse:

• Regulatory risks are severe if misunderstood or mismanaged
• Importance of strong risk management and balance sheets in volatile markets
• First-mover advantage is key in financial product innovation
• Commitment to retail client service—personal touch remains vital

Regulatory Shifts: From Hostility to Collaboration

[10:07–12:59]

• Under SEC Chair Gary Gensler, crypto companies faced constant scrutiny and little clarity.
• With the new administration and figures like Paul Atkins, regulation has become more open and constructive.

Key Developments:

• Genius Act passes, with more potentially clarifying bills expected soon
• OCC begins approving banking charters for crypto companies
• SEC enforcement actions and inquiries are being dropped, fostering innovation

Quote:

“You could feel it, you know, kind of across the board...you can actually have a kind of candid dialogue with the regulators now.” – Zach [11:52]

Impact:

• Increased innovation
• More transparent dialogue with regulators
• Better environment for capital formation and consumer product development

Inside Galaxy: Institutional Tech Meets Retail Innovation

[14:30–17:34]

• Galaxy’s Breadth: Institutional asset management, trading, lending, investment banking, AI data centers (via bitcoin mining firm acquisition).
• Size & Scope: $17+ billion in assets, record $500M+ net income last quarter, $3.2B total equity, $1.8B loan portfolio.
• Key Infrastructure: Top validator on Solana, active in staking and tokenization, partners with legacy firms on ETFs and custody.

Quote:

“How many individual stocks can you buy that give you exposure to crypto and AI in a single stock?” – Zach [15:11]

Galaxy One: The Consumer Platform

[17:34–19:25]

Products:

• Checking Account: 3.5% yield, FDIC-insured
• Premium Yield Product: 8% on cash (accredited investors; auto-reinvest into Bitcoin or crypto; yields sourced from Galaxy’s institutional lending; corporate guarantee and 60-day duration, $250M product cap)
• Brokerage Account: Commission-free stock trading
• Crypto Account: Buy/sell/transfer Bitcoin, Ethereum, Solana

Purpose and Vision:

• Bring institutional-grade quality and yield to retail investors.
• One-stop platform for banking, investing, and direct crypto access.

Quote:

“Can we deliver a more institutional quality experience across not just crypto, but also traditional financial services... to US-based, tech-forward, mass affluent investors?” – Zach [17:56]

All About Yield: Where Does It Come From and Can We Trust It?

[19:25–26:33]

• Checking Account yield is pure banking, premium yield comes from lending to institutions (guaranteed by Galaxy).
• Strict size/structure controls ensure risk management.
• Product is a regulated security (Reg D 506(c)), open only to accredited investors, with full disclosures and risk docs.

Comparing to 2021 Yield Frenzy

• Previous cycle saw unsustainable promised yields (up to 50%) leading to market crash.
• Galaxy now restricts yield products to U.S., public, highly-audited company structures with caps and durations.
• Learning from past errors: focus on safe, sustainable, transparent yields.

Quote:

“It’s not just crypto where this stuff happens... It’s very important to understand what you’re investing in, especially when you’re talking about fixed income or credit or yield.” – Zach [22:55]

Navigating Competing Banks and ETFs

[28:48–32:34]

• Big banks (JPM, BofA, etc) are both competitors and, at times, partners.
• Traditional names legitimizing blockchain (e.g. launching on-chain funds) broadens acceptance.
• ETFs are seen as adding capital and legitimacy, despite not boosting prices in 2025 as much as expected.
• Galaxy issues spot Bitcoin ETFs (via State Street partnership) and sees them as long-term net positive distribution channels.

Quote:

“I think it’s been clear that the ETF’s launching is an incredible new distribution channel for people being able to own crypto.” – Zach [31:19]

Ethereum and On-Chain Infrastructure for Institutions

[32:34–36:04]

• Rapid institutional adoption and infrastructure buildout happening on Ethereum, but Solana is gaining traction (especially where speed is critical).
• Three major categories of institutional blockchain use:
  1. Enabling banks to offer crypto services
  2. Tokenization of real-world assets (RWA)—e.g. JP Morgan as a book runner for Galaxy’s tokenized debt
  3. Using blockchain to replace legacy infrastructure for money movement and settlement

Quote:

“If you said which blockchain is being most used across these different categories? It would be Ethereum.” – Zach [35:47]

Why Didn’t the Four-Year Cycle Work? Market Reflections

[36:04–40:57]

• Traditional four-year post-halving cycle didn’t yield a bull market in 2025.
• Likely reasons include heavy ETF liquidity (allowing whales new exit avenues) and the now well-known four-year cycle pattern being ‘front-run.’
• Institutional involvement—both as investors and via volatility-reducing derivative products—is changing market structure.
• Broad agreement: the long-term thesis remains. Short-term performance is unpredictable but the “face-melting” upside will come unexpectedly.

Quotes:

“Bitcoin does the opposite thing of what you think it’s going to do price wise.” – Zach [37:59]
“When you least expect it, it’s going to melt our faces to the upside again.” – Zach [39:23]

Looking Ahead: Roadmap for Galaxy One

[41:43–43:25]

• Upcoming:
  • Support for LLCs, trusts, and business/crypto treasuries
  • Staking product
  • New CEFI crypto-backed lending product
  • More asset management and lending innovations to come
• Open invitation for feedback and connection—Zach welcomes DMs.

Quote:

“We’re in the early days of Galaxy One...we have some really exciting stuff coming down the pipeline.” – Zach [43:13]

Notable Quotes

• On regulation:

  “You absolutely feel it… creates a much better culture for capital formation, a much better culture for product innovation.” – Zach [11:43]

• On product responsibility:

  “It’s just kind of night and day, I think, from what was happening back then… we’re keeping those learnings and risk factors in mind.” – Zach [24:42]

• On the future of crypto:

  “My confidence in bitcoin, Ethereum, Solana over the long term… hasn’t been shaken… Bitcoin does the opposite thing of what you think it’s going to do price wise.” – Zach [37:50]

Important Timestamps

• Zach’s background and BlockFi lessons: 02:11–07:14
• Regulatory climate shift: 10:07–12:59
• Intro to Galaxy & products: 14:30–19:25
• Yield generation and how it’s constructed: 19:25–26:33
• Reflections on competing with banks, ETFs: 28:48–32:34
• Ethereum as infrastructure: 32:34–36:04
• The four-year cycle “failure”: 36:04–41:43
• Future roadmap for Galaxy One: 41:43–43:25

Tone & Language

• Direct, conversational, and occasionally humorous (“I blamed it on the bears before. I’m gonna do it again.” – Brendan [00:36])
• Technical, yet accessible—intended for both seasoned crypto participants and new investors
• Focused on investor education and real-world applicability, consistent with the podcast’s mission

This episode delivers an in-depth, honest exploration of how yield generation in crypto—backed by sound risk management and regulatory clarity—could drive the next wave of adoption. For listeners eager to understand how the playing field is shifting for both institutions and retail investors, Galaxy’s approach offers a clear glimpse of crypto’s maturing ecosystem—and the innovation still ahead.