Podcast Summary: The Wolf Of All Streets

Episode: "Bitcoin Is Being Weaponized & Nobody Understands What Happens Next"

Host: Scott Melker
Guest: Zac Prince (Former BlockFi CEO, CEO of Galaxy One)
Date: February 1, 2026

Episode Overview

In this episode, Scott Melker hosts Zac Prince, a key figure in crypto lending (ex-BlockFi, now Galaxy One CEO), to dissect the seismic shifts in the crypto ecosystem post-2022. They lay bare the regulatory fallout, the collapse of CEFI platforms, and how institutions are rebuilding financial products—this time with compliance, risk controls, and robust infrastructure. The discussion zeros in on the implications of Bitcoin's institutional embrace, the yield landscape, legitimacy for stablecoins, the pitfalls of "Bitcoin treasury companies," and how Galaxy One targets mass-affluent investors bridging traditional finance and crypto.

Key Discussion Points & Insights

1. The Post-2022 Crypto Landscape

• ETF & Derivatives Dominance

  • Markets are now “completely driven by ETF and options and futures as opposed to the spot market.” (Zac, [00:29])
  • “Night and day in so many ways now versus... 2021 or 2022.” (Zac, [02:00])

• Regulatory Retrospective

  • Crypto's regulatory environment was “night and day” compared to today—prior hostility created obstacles and inadvertently pushed activity offshore, leading to greater risk.
  • “In the cases of Voyager and BlockFi... one or two different decisions and those businesses would still be around.” (Zac, [02:53])
  • “The size of the settlement we reached with the SEC was unprecedented... There just wasn’t a reasonable solution [for CEFI firms] as we saw in fintech.” (Zac, [04:52])

2. The New Yield Paradigm (2025 and Beyond)

• Yield Returns but with New Structures

  • “Yield was a four letter word... and now it seems to be almost commonplace.” (Scott, [06:37])
  • Higher base interest rates now allow for safer yields: “You can get a risk free yield in the 4% range, which is a fundamental difference.” (Zac, [06:59])

• How Galaxy One Does Yield

  • Checking Account: FDIC insured, 3.5% yield; essentially a high-yield savings “powered by a bank.” (Zac, [08:40])
  • Galaxy Premium Yield: Only for accredited investors, 8% yield on cash, risk is to Galaxy as a public company—“kind of like a corporate debt offering structurally.” (Zac, [08:40])
  • Key Differences vs BlockFi & CEFI:
    • No yield on Bitcoin (“very, very challenging” due to supply/demand mismatch for risk-adjusted returns)
    • Cap on product size ($250M)
    • 60-day withdrawal period for risk management
    • Transparent risk and public audited financials (Galaxy listed on NASDAQ)

  Notable Quote:

  “There’s a lot more money that wants to get a yield on their bitcoin than there are compelling risk adjusted opportunities to actually generate a yield on bitcoin.” — Zac, [01:03]

3. Bitcoin Treasury Companies: Illusions and Realities

• Skepticism of “Treasury” Models Succeeding

  • Scott’s critique: the logic of Bitcoin treasury firms seeking to “beat Bitcoin” is flawed—Bitcoin has no native yield; additional yield involves additional risk.
  • “Are we really talking about yield on bitcoin? ...Bitcoin doesn’t have a native yield and it means taking on risk to beat bitcoin. So why not just own bitcoin?” (Scott, [12:14])
  • “The market’s telling us they’re not supposed to [exist/succeed].” (Zac, [13:16])
  • Some “bitcoin staking” pitches are just creative tokenomics, not true yield.

  Notable Moment:

  • Comparing the hype to the GBTC premium/discount era—mechanical and temporary, not sustainable value.
  • Praise for Jim Chanos’ “long bitcoin, short bitcoin treasury” thesis ([14:37])

• Altcoin Treasury Companies—Easier, but for the Wrong Reasons

  • “If you have an edge on staking and can get OTC discounts with unlocks, it’s really easy to beat Solana or Ethereum [NAV].” (Scott, [16:08])
  • Even so, Business Development Companies (BDCs) in traditional finance—real businesses with cash flows—can struggle to achieve NAV premiums, revealing market skepticism.

4. Galaxy One: Bridging Retail & Institutional Finance

• Mission and Products

  • Born from Galaxy Digital’s acquisition of Fierce, combining institutional tech with retail focus ([20:26])
  • Launched Oct 2025 with:
    • Checking (FDIC insured)
    • Fee-free equity brokerage
    • Blue-chip crypto trading
    • Premium cash yield product (8%)
  • Ambition:
    • Unified platform for cross-asset management
    • Accessible to “mass affluent”—those with $250K–$9M, previously underserved by exclusive private banks
    • Delivering sophisticated financial solutions (e.g., seamless wire sending, better mortgage experience for non-W2 clients, yield on cash, and eventually, borrowing against unified portfolios of crypto + equities) ([27:10–30:53])

  Notable Quotes:

  “We’re trying to create the value that a lot of folks at private banks get, but that isn’t available to people on their way there.” — Zac, [27:10]
  “I wish you had existed when I was buying that house.” — Scott, [45:54]

5. Friction in Legacy Banking vs. Crypto Rail Advantages

• Wires and Mortgages: Nightmarish in TradFi

  • Multiple anecdotes about wire transfer issues and the headaches of getting a mortgage without clear W2 income—even for wealthy clients ([28:51], [33:02])
  • Crypto/stablecoins offer efficiency—"I could have sent you this in stablecoins in 30 seconds, no fee.” (Scott, [35:30])

• But Crypto Not a Panacea

  • Finality and scam risks are high—many consumers still struggle to use crypto safely ([36:10])
  • Zac: “You have some level of responsibility to try and protect people from fraud... the finality of crypto can also be scary in its own right.” ([35:32])

6. Stablecoins & Tokenized Financial Products: The Real Killer Apps

• Dollar Dominance Reimagined

  • “The killer app has been the dollarized yacht.” (Scott, [36:53])
  • Widespread acceptance and legislation for stablecoins is a success—now poised for expansion globally ([37:02])

• Tokenized Equities & Fixed Income: The Next Frontier

  • Zac: Next leap would be easy, efficient, global access to tokenized stocks/bonds, just like stablecoins delivered for USD.
  • “We should be applying [stablecoin logic] to bonds... to stocks. And figuring out the regulatory piece is gonna take work.” (Zac, [38:28])
  • Potential roadblocks: surprising legislative twists like attempts to ban tokenized securities (Clarity Act) ([39:39]), the risk of political pendulum swings making crypto a partisan issue.

7. Macro/Market Observations & Cautions

• Lingering Risks/Concerns

  • No new systemic risk seen in market structure, but expresses concern if Bitcoin underperforms gold for several consecutive years:

    “If we go through too many years of underperforming gold... I don’t think that’s a good look.” (Zac, [49:24])

  • Quantum computing “chatter” starting to impact some investor sentiment
  • “Politician coins” and celebrity token launches—red flags for integrity in the space ([51:28])

• Adoption Hinges on Sentiment and Price

  • Both macroeconomic environment (risk-on/off) and crypto price trends impact user growth and platform engagement ([47:24])

8. What Success Looks Like for Galaxy One

• Short-to-Medium Term:
  • Product execution—launch 4-5 new flagship products in 2026
  • Build the platform to where “mass affluent” clients would move substantial assets over ([42:29])
• Longer Term:
  • Retail business emerges as a distinct, valuable business line within Galaxy Digital’s enterprise value
• North Star:

  “We can only create value for Galaxy by creating value for clients of Galaxy One.” (Zac, [43:20])

Notable Quotes & Moments (with Timestamps)

• On Regulatory Shifts:

  “It feels a little bit surreal at times to be where we’re at now... The level of 180 degree shift from... the regulatory stance.” — Zac, [02:00]

• On Crypto Yield then vs. now:

  “Part of that is just the interest rate environment... Today the 10 year is at 4%... just kind of different.” — Zac, [06:59]

• On Why BlockFi (and others) failed:

  “The regulatory posture really hurt the business from a capitalization perspective in two ways... hampered our ability... blew up a very large fundraising round...” — Zac, [04:52]

• On Bitcoin Treasury Companies:

  “The market’s telling us they’re not supposed to [exist/succeed].” — Zac, [13:16]

• On Stablecoins’ Global Importance:

  “This is a really great thing for America that we’re able to have this new distribution channel for the dollar... we should be applying that to bonds and fixed income investments... to stocks.” — Zac, [38:28]

• Legacy Bank Pain:

  “My producer is literally laughing his ass off behind the camera... I spent the hour-ish before this conversation... dealing with trying to send a wire at Chase Bank.” — Scott, [28:51]

Timestamps for Key Segments

• 00:00-02:00 — Setting the stage: ETF and derivatives world, regulatory whiplash
• 02:53-06:37 — Where BlockFi failed, regulatory overkill, market transformation
• 06:59-12:14 — Yield: from dirty word to new normal, how Galaxy does it
• 12:14-18:08 — Bitcoin and Altcoin Treasury Company skepticism
• 20:01-27:10 — Genesis and structure of Galaxy One
• 27:10-30:53 — Private banking value for mass affluent, wire/mortgage pain points
• 33:02-36:25 — Real-life stories of TradFi headaches, stablecoins and why “we crypto”
• 37:02-39:39 — What’s next for stablecoins, tokenized assets, regulatory risk
• 42:29-45:35 — What success looks like for Galaxy One, serving clients
• 47:24-48:55 — Market cyclicality, risk in crypto platform growth
• 49:24-52:15 — Risks moving forward: gold v BTC, quantum computing, “politician coins”

Tone & Language

Both Scott and Zac maintain a conversational, often self-deprecating, and pragmatic tone. They’re unafraid to critique past mistakes, laugh at TradFi absurdities, or point out the risks lurking in overly rosy narratives. The discussion is technical but approachable, with an emphasis on transparency, risk management, and what truly delivers user value.

This episode offers actionable, plainspoken insights into the intersection of crypto and traditional finance, the regulatory factors shaping them, and what the next era of financial products may look like for everyday investors and the institutions serving them.