California Governor Newsom Launches Tech Initiative to Modernize State Operations

California Governor Gavin Newsom announced the California Breakthrough Project on July 15, bringing together executives from Coinbase, Ripple, MoonPay, and other technology firms to enhance state operations. The initiative aims to leverage the expertise of these tech leaders to identify and address inefficiencies in various state processes.

Newsom convened the advisory group at Ripple’s San Francisco headquarters on June 6. Key participants include Ripple Executive Chair Chris Larsen and unnamed executives from MoonPay and Coinbase. The group will collaborate with agency staff to identify bottlenecks in procurement, hiring, and service delivery, propose challenge-based pilots, and ensure transparency and labor consultation throughout each project phase.

Newsom highlighted California’s leadership in artificial intelligence (AI) research, noting that 32 of the world’s 50 largest AI companies operate in the state. He emphasized that access to this expertise enables Sacramento to quickly test new tools while respecting privacy safeguards.

To support the initiative, Newsom issued Executive Order N-30-25, which instructs the Government Operations Agency to work with the departments of Human Resources, General Services, and Technology on three key areas: shortening civil service hiring cycles, simplifying information technology procurement, and creating shared contracting vehicles. The order mandates that every cabinet agency submit at least one no- or low-cost efficiency proposal within 90 days.

The Office of Data Innovation will expand “Engaged California,” a deliberative democracy platform that crowdsources ideas from state workers. Additionally, the office must launch an Innovation Fellows Program by August 15, assigning selected supervisors to address specific operational challenges. Departments are required to allocate dedicated time for each fellow to complete their assignments.

Separately, Coinbase is supporting federal political efforts through Fairshake, a crypto-focused super PAC. Fairshake reported $141 million in cash on hand as of June 30, including $52 million raised in the first half of 2025, of which Coinbase contributed $25 million. Fairshake has collected $109 million since Election Day 2024 and remains focused on building lasting support for crypto and blockchain innovation.

This collaboration between state officials and tech executives represents a significant step towards modernizing California’s operations. By leveraging the expertise of industry leaders, the state aims to streamline processes, enhance efficiency, and foster innovation. The initiative underscores California’s commitment to staying at the forefront of technological advancements and using them to improve public services.