Podcast Summary

Podcast: The Wolf Of All Streets
Host: Scott Melker
Episode: Bitcoin & Crypto Demand EXPLODE On Wall Street Ahead Of Fed Cuts
Date: September 9, 2025

Episode Overview

This episode dives into the rapidly growing institutional adoption of blockchain technology and crypto assets, focusing on fresh developments from Wall Street, the context surrounding anticipated Federal Reserve rate cuts, and the explosion of demand for Bitcoin and altcoins. Scott Melker leads a roundtable discussion with guests Andrew, Tillman, and special guest Austin Campbell, exploring the macroeconomic forces, industry innovations, and the nuanced tensions between centralization and decentralization. The panel also examines practical utility, evolving stablecoin models, and the trajectory of digital assets within the global financial architecture.

Key Topics & Insights

1. The Fed, Rate Cuts, and Macro Market Dynamics

• Backdrop: Scott introduces concerns over JP Morgan’s warning that the widely expected Fed rate cuts could be bearish for stocks, especially against a backdrop of declining employment growth and persistent inflation ([01:31]).
• Austin’s Take: “If the Fed is telling people we're cutting rates because we expect the economy is some flaming garbage, that is not a reason for stocks to go up... If employment is structurally weak... and you're getting rate cuts to defend the unemployment mandate—no, that is typically a bad sign for asset prices.” ([02:26] Austin)
• Structural Employment: Andrew adds nuance, noting overall unemployment remains at historic lows, even if job growth is slowing. He points out the “unspoken mandate” post-GFC—regulators are committed to preventing crashes: “...there's been a mandate that basically says we're not going to let markets go down, we're going to support the economy in every way that we can possibly imagine.” ([04:42] Andrew)
• Liquidity Over Indicators: Tillman pivots to focus on M2 and liquidity, cautioning: “The money that's about to be printed over the next two and a half years I believe is going to be a rising tide that overwhelms any short term indicator, any unemployment, anything.” ([07:12] Tillman)

2. Institutional Blockchain Adoption—Centralization vs. Decentralization

• Proliferation of Layer 1s and 2s:
  • Highlighted announcements: Upbit launching an Ethereum L2, Stripe and Paradigm’s new payments blockchain, Google Cloud’s Universal Ledger, NASDAQ’s push for tokenized stocks ([14:02] Scott).
  • Scott projects, “...we're going to have this battle for the soul of centralization and decentralization when it comes to institutional adoption of blockchain, because these are all purpose-fit blockchains meant to enrich, in my opinion, these companies or to make sure they at least have a certain level of control.” ([14:02] Scott)
• Market Competition & Real-world Utility:
  • “It's competition and innovation... we're going to have a very, very fast explosion of this technology across finance over the next eighteen to thirty-six months...” ([15:31] Andrew)
  • Tillman underscores the incentive for firms to create their own networks: “If I'm SWIFT, why do I need Ripple? I just go copy the code and I do it myself and I inject all my liquidity...” ([20:09] Tillman)
• Three Models for Blockchain Success:
  • Austin outlines historic pathways: monopoly via size, consortiums, or open-access networks. He notes, “...if JP Morgan couldn't force people to adopt their private blockchain, anybody smaller than JP Morgan is not going to do that.” ([17:15] Austin)
• Google’s Neutral “Universal Ledger”:
  • Discussed as a potential layer for interoperability, but panel is skeptical about “neutrality” in practice ([19:01]-[19:25]).

3. Tokenized Assets, Stablecoins, and Real-world Constraints

• Tokenization & Legal Risks:
  • Austin highlights the “unsolved” issues of public blockchains for real-world assets: “If we go tokenize housing title... and grandma's house is on the blockchain and the North Koreans steal it, do they get to move in? … Most legal regimes will say no...” ([25:28] Austin)
  • Key point: Purely permissionless models are unlikely for most tokenized real-world assets due to legal and reversal requirements.
• Private vs. Public Chains:
  • Tillman and others foresee coexistence and interoperability: “I don't think that there's going to be an all or nothing, only private, only public. I think it's going to be like, hey, private is where you have to be subjected to their rules... but public will always be an option...” ([30:32] Tillman)
  • Instant settlement is a feature, but “not everything needs instant settlement… there will be a lot of private chain application...” ([28:49] Tillman)

4. Stablecoins and Venture-Branded Digital Currency

• Distribution is Key:
  • Austin reframes stablecoins’ prospects: “There are only three stablecoins that have durably been above $20 billion... all three were attached to very large distribution partners… The real battle… is with the distributors because they're the ones who are going to drive adoption.” ([31:58] Austin)
• Brand-backed Stablecoins:
  • Tillman imagines Taylor Swift stablecoins, Disney tokens, etc. as forms of branded currency/in-app value. “If I was a Taylor Swift and I issued a Taylor stable coin and I said, you have to buy all my tickets and all my merchandise in Taylor... there are going to be millions of people using it.” ([33:09] Tillman)
• From Gift Cards to Digital Money:
  • Starbucks app used as an analogy for closed-loop stablecoins. The group foresees eventual interoperability and on/off ramps: “...there will be a moment... where it changes… now it's not digital gift cards anymore... there's interoperability across all of it.” ([38:43] Andrew)
• First Movers:
  • Andrew notes JP Morgan and Coinbase as early drivers, suggesting that any major branded stablecoin (e.g., Disney) will likely have JP Morgan and Coinbase behind it: “...they're going to be the tech and liquidity behind it. That's where we're headed.” ([35:34] Andrew)

5. Industry Perspectives on Adoption and Innovation Loops

• Payments & Trading Infrastructure:

  • Recap of product offerings and customer demand for volatile crypto pairs ([44:50]).
  • Discussion of direct exchange integration and automation.
  • Uniqueness of their company offering full-featured, user-directed trading automation—distinguished from custodial “black box” competitors ([47:32]).

• Historical and Tech Parallels:

  • Austin remarks on crypto speedrunning financial innovation: “Crypto is just speed running a lot of the history of financial innovation writ large... we're going to fuck around and find out with a lot of this stuff. And the things that will eventually work might be surprising.” ([40:28] Austin)
  • Comparison to the streaming music industry: peer-to-peer file sharing was once disruptive, but ultimately, the infrastructure was adopted and dominated by major brands (Apple, iTunes, etc.) ([43:56] Tillman).

Notable Quotes & Moments

• [02:26] Austin:
  "If the Fed is telling people we're cutting rates because we expect the economy is some flaming garbage, that is not a reason for stocks to go up."

• [07:12] Tillman:
  "The money that's about to be printed over the next two and a half years I believe is going to be a rising tide that overwhelms any short term indicator, any unemployment, anything."

• [17:15] Austin:
  "If JP Morgan couldn't force people to adopt their private blockchain, anybody smaller than JP Morgan is not going to do that."

• [25:28] Austin:
  "If we go tokenize housing title...and the North Koreans steal it, do they get to move in?...Most legal regimes will say no..."

• [30:32] Tillman:
  "I don't think that there's going to be an all or nothing, only private, only public. I think it's going to be like, hey, private is where you have to be subjected to their rules... but public will always be an option..."

• [31:58] Austin:
  "There are only three stablecoins that have durably been above $20 billion... The real battle… is with the distributors because they're the ones who are going to drive adoption."

• [33:09] Tillman:
  "If I was a Taylor Swift and I issued a Taylor stable coin ... there are going to be millions of people using it."

• [40:28] Austin:
  "Crypto is just speed running a lot of the history of financial innovation writ large... most of them are not going to stand the test of time, right. These are experiments and I'm glad people are doing that is not a criticism."

Timestamps for Key Segments

• 01:31 – [Fed rate cuts, macro impact, and unemployment data]
• 07:12 – [Liquidity, money supply & market direction]
• 14:02 – [Institutional blockchain adoption: new L1s, L2s, and tokenization]
• 17:15 – [History’s lessons: monopoly, consortium, open-access models for blockchains]
• 25:28 – [Legal reality for tokenized real-world assets]
• 30:32 – [Public and private blockchain coexistence]
• 31:58 – [Stablecoin adoption; why distributors matter]
• 33:09 – [Brand stablecoins and community economics]
• 38:43 – [From digital gift cards to interoperable branded money]
• 40:28 – [Crypto “speed running” the history of finance; what succeeds long-term is unpredictable]
• 43:56 – [Tech industry analogies: streaming vs. peer-to-peer & industry consolidation]

Tone and Takeaways

The conversation is energetic, skeptical, and at times irreverent—packed with macro analysis, first-hand insider perspective (especially Austin’s JP Morgan and Paxos experience), and big-picture strategic thinking. The panel is clear-eyed about industry hype vs. utility, serious about the regulatory and technical challenges ahead, and bullish on blockchain and stablecoin adoption—so long as it evolves in partnership with distribution power and real-world integration.

Listeners come away with a nuanced understanding of how Wall Street is leveraging crypto, why Fed policy matters to digital assets, and why the battle between centralization and decentralization is both practical and philosophical—as well as where the biggest opportunities might be as the lines blur between finance, commerce, and fandom.