Coinbase Global, Inc.

Good afternoon. My name is Kate and I will be your conference operator today. At this time, I would like to welcome everyone to the Coinbase second quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to read your question, press star one again. Thank you. Anil Gupta, Vice President, Investor Relations. You may begin your conference.

Good afternoon and welcome to the Coinbase Second Quarter 2025 Earnings Call. Joining me on today's call are Brian Armstrong, co-founder and CEO, Emily Choi, President and COO, Alicia Haas, CFO, and Paul Grewal, Chief Legal Officer. I hope you've all had the opportunity to read shareholder letter which was published earlier today on our investor relations website during today's call we may make forward-looking statements which may vary materially from actual results information concerning risks uncertainties and other factors that could cause these results to differ is included in our sec filings our discussion today will also include certain non-gap financial measures reconciliations to the most directly comparable gap financial measures are provided in the shareholder letter on our investor relations website Non-GAAP financial measures should be considered in addition to, not as a substitute for, GAAP measures. We'll start today's call with opening comments from Brian and Alicia, and then take questions from retail shareholders and our research analysts. With that, I'll turn it over to Brian for opening comments.

Thanks, Anil. It was another great quarter for Coinbase, and we continue to ship innovative products, drive strong financial performance, and advance regulatory clarity for the industry. Total revenue came in at 1.5 billion with positive adjusted EBITDA of 512 million. And we now have 9.3 billion in total USD resources with 1.8 billion in our growing crypto investment portfolio fueled by weekly Bitcoin purchases. I want to give a quick refresher on why we're here and what we're building toward. Our mission is to increase economic freedom for everyone, everywhere. Crypto is eating financial services, and our goal is to be the number one financial services platform in the world across custody, trading, payments, staking, borrowing and lending, and more. Our focus this year is to drive growth in our core businesses, trading and stablecoin payments, and I want to share three key areas that we made progress toward those objectives this quarter. First, on trading, we've always believed that every asset class will move on chain. The customer's technology and regulatory environment are now finally ready for it. People want to invest capital across all asset types, from stocks to commodities to real estate to crypto, including meme coins and the long tail of assets. And even how startups raise money and all capital formation is going to be rebuilt on chain, where markets are cheaper, faster, global, and open to everyone. So we've been making investments in this area for some time, and our goal is to build what we're calling the everything exchange. Every asset you want to trade in a one-stop shop, all on crypto rails. This means to start, we're enabling access to millions of spot crypto assets. This is the number one thing our customers want from us. And in Q2, we hit over 300 total assets listed on our exchange. Next week, we'll be rolling out the next chapter of our asset addition strategy by integrating decentralized exchanges right into the Coinbase app, which will eventually enable access to millions of tokens. Next, it means offering the most global and compliant suite of perpetual futures and options to meet the needs of advanced traders. And we now have a comprehensive derivatives product suite. We recently launched 24-7 trading of Bitcoin and Ethereum contracts. And we launched perpetual-style futures in the United States, which hit an all-time high in trading volume this week. Finally, we announced our acquisition of Deribit, the world's leading crypto options exchange with over $30 billion of open interest. And now we're currently working toward launching tokenized equities to meet the moment in this new regulatory environment. We've always said we're updating the system and building the bridge to bring equities onto crypto rails is the next phase of our strategy. We may integrate with traditional brokers as a stepping stone towards this vision to provide liquidity, but we believe tokenized equities are more efficient with global coverage, 24-7 trading, instant settlement, and the ability to offer perpetual futures. total addressable market for this is massive capturing just three percent of equities trading would double the current crypto market over time we'll bring all asset classes on chain including prediction markets real world assets and more and we're building on the frontier committed to doing this in a compliant and trusted way which we've done for many years while making it easily accessible to everyone so that's the everything exchange Next, let's touch on how we're accelerating crypto utility with our full-stack payment solutions. We see payments as the next big use case in crypto and believe that the majority of all payments in the economy will eventually run on stablecoin rails because they are faster, cheaper, and global. Passage of the Genius Act will fuel further innovation and adoption of stablecoins, and we are uniquely positioned because we have both the broadest distribution base for USDC and the best rewards program for customers. We're one of the only companies with a vertically integrated payment stack. This includes USDC, the largest regulated dollar stablecoin, BASE, the most popular Layer 2 solution on Ethereum, consumer applications and wallets with millions of retail users, and payment APIs to power businesses and developers. Together, these offer a faster, cheaper, and more global payment solution. In Q2, we announced our stablecoin payment APIs, which enable businesses, merchants, and developers to easily accept and pay in stablecoins with partners like Shopify already live in market now. Finally, I'd like to spotlight how we are leveraging our deep experience in building crypto infrastructure to power the next wave of businesses coming into this space. We now have over 240 businesses using our crypto as a service capabilities to power their custody, trading, and payments needs, including BlackRock, PNC, Stripe, and PayPal. We power over 80% of the custody for crypto ETF issuers. And we're a trusted partner to over 150 government agencies and institutions to help manage and safeguard crypto assets with regulated and secure solutions. As the most trusted name in crypto with the longest track record of success, we are the natural partner for any company or government entering this crypto space. So in closing, with regulatory clarity finally emerging, we believe crypto rails are poised to power an increasing share of global GDP and update every aspect of the financial system. And Coinbase is the company best positioned to capitalize on this trend. I'll now turn it over to Alicia.