Circle Internet Group, Inc.

will be a question and answer session. If you would like to ask a question during that time, simply press star, then the number one on your telephone keypad. I would now like to turn the call over to John Andrews, Vice President of Capital Markets and Investor Relations. John, please go ahead.

Good morning and welcome. This is John Andrews, VP of Capital Markets and Investor Relations at Circle, and I'd like to welcome you to our second quarter 2025 earnings conference call. We are excited for all of you who have joined us this morning as we take another key step on our journey as a public company with our first earnings call. I'm joined by Jeremy Allaire, our co-founder, chief executive officer and chairman, and Jeremy Foxkeen, our chief financial officer. Earlier this morning, we posted our earnings press release and earnings presentation on the Circle Investor Relations website, investor.circle.com. A transcript of this call will be posted on that website once available. I do need to remind everyone that our earnings release, presentation, and this call contain statements that are forward-looking, because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, we should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur, and actual results could differ materially from those projected in that forward-looking statement. Information concerning risks, uncertainties, and other factors that could cause these results to differ is included in our SEC filings. We will also disclose non-GAAP financial measures in the call today. Definitions of those non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures can be found in the earnings release and earnings presentation that are available on our investor relations website at investor.circle.com. Non-GAAP financial measures should be considered in addition to but not as a substitute for GAAP measures. That out of the way, it's with pleasure. Let me turn it over to Jeremy Allaire.

Thank you, John. I'm pleased to be here this morning. It's been an honor to bring Circle public and host our first earnings call. We are thrilled to work with so many world-class people, partners, and investors. We started this company 12 years ago with an ambitious mission to build a new internet financial system with blockchains and digital currency that could increase global economic prosperity through the frictionless exchange of value. We and the entire market are in the early stages of that vision, literally graduating from the early adopter phase of blockchain technology and digital currency into the mainstream adoption phase that is accelerating. I want to start with some key highlights from 2025. USDC, the core of our stablecoin network, has grown to 61.3 billion at June 30th, and growth has accelerated into Q3 to 65.2 billion in circulation as of August 10th, representing approximately 90% year-over-year growth and 49% growth year-to-date, making USDC the fastest-growing major stablecoin over the past year. In Q2, USDC on-chain transaction volume grew 5.4x year over year to nearly $6 trillion. Our transaction volumes have also accelerated into Q3, with $2.4 trillion in transactions in July alone. We have been rapidly expanding Circle's platform and network with major new products, including Circle Payments Network, which we believe will become a breakthrough in global money movement by building an on-chain native payments network that will move money faster and more efficiently and opens up new utility to programmable payments. Circle Gateway, which enables seamless cross-chain USDC experiences. Eight new blockchain partners. And ARK, our new layer one blockchain network, which we are announcing today. More on that later. Post-IPO and Genius Act, we are experiencing rapid expansion in commercial opportunities with major mainstream companies across every sector of finance and technology, including companies from all around the world. And from a corporate mission perspective, we joined Pledge 1%, a global movement for corporate impact, to honor this commitment prior to the IPO we reserve 2.7 million shares of our Class A common stock for future donations to our Circle Foundation. As we look at the overall stablecoin market, we believe that the total addressable market for stablecoins and our products is massive, with dollar stablecoins only representing a mere 1% of the US M2 money supply, but with continued rapid growth in stablecoin supply. Today, Circle operates the largest regulated stablecoin network in the world. We talk about this a lot. Stablecoins are network businesses and have meaningful network effects. Growth of our stablecoin network is driven by our platform, our blockchain protocols, and the developers building applications and services on our network. That expands the Circle on-chain ecosystem and is the classic flywheel that has driven the growth of our stablecoin network since its launch in 2018. Like other internet platforms and network businesses, stablecoins are a winner-take-most market as liquidity and utility complement each other and drive growth. There have been many regulated and unregulated dollar stablecoins and many more to come. but the strength and resiliency of CIRCLE's network effects positions us well to compete and grow. Turning to the regulatory environment, CIRCLE's market and competitive strength is further cemented with the signing of the Genius Act, creating powerful tailwinds for CIRCLE. We believe this law will accelerate stablecoin adoption by major financial institutions, mainstream enterprises, technology companies, and ultimately, drive much broader use of stablecoins across retail and wholesale payments, as well as broader usage in TradFi capital markets. This is likely the catalytic moment for the mainstream scaling of stablecoins, and we are already seeing this in our business momentum. Turning to our products and platform, we are continuing to make progress with our core digital asset products, USDC, EURC, and USYC. With USDC, we expanded our distribution onto eight new blockchain networks in 2025 and significantly expanded CCTP version 2 availability, both of which continue to cement USDC as the most liquid and available on-chain dollar stablecoin. We also now offer a yield token, USYC, that can be used in both digital asset and traditional capital markets as collateral. with 24-7, 365 liquidity between USYC and USDC. We're now executing that strategy, driven by our expanded partnership with Binance, who will now make USYC available as collateral, unlocking a very powerful use of USYC on the largest exchange in the world. And we're already seeing accelerating adoption there. We've continued to expand our core banking and liquidity capabilities, including with multiple GSIBs, strengthening our unrivaled industry position. During Q2, we undertook the launch of one of the most ambitious new product investments, Circle Payments Network, our initiative to transform international money movement, which today already has active payment corridors in Hong Kong, Brazil, Nigeria, and Mexico. We have rapidly grown our pipeline of financial institutions interested in launching on CPN to over 100 firms. We have an ambitious roadmap and will continue to expand CPN's features and use cases from international money movement to other types of payments such as consumer and B2B payments and still further into global capital markets and corporate treasury services. We're incredibly excited to see this level of interest so soon after CPN's launch. In July, we introduced Circle Gateway, which abstracts away the complexity of holding USDC on different blockchains and in different wallets, streamlining usability and speeding transactions that use USDC. This is a key building block in bringing USDC into more mainstream financial and payment applications and creates new monetization opportunities for Circle. now i'd like to turn to a very special and major new platform initiative that we are announcing today arc arc is a new blockchain network from circle that we will launch in the second half of the year we are at the fulcrum of a massive mainstream embrace of stable coins in the financial system and firms are racing to build on this infrastructure but until now The blockchain infrastructure needed to meet the most intense demands of major financial firms and enterprises has simply not existed. We are delivering that infrastructure with ARK. ARK is a new layer one blockchain that is compatible with Ethereum infrastructure, but operates as a standalone network. Some key facts about ARK. We wanted to create a way for institutions to pay fees on blockchains in a fast, predictable manner that would be simple from an accounting perspective and could deliver very low cost and stable fees. So with ARK, we are using USDC itself as the native gas fee currency. This removes the complexity of paying transaction fees in a native token. ARK offers enterprise-grade performance and real settlement finality. Financial institutions and regulators expect deterministic finality, which AHRQ will achieve with circle-vetted professional validators and its novel consensus mechanism. AHRQ will also offer configurable privacy controls with opt-in confidential transfer features, which is essential for real-world business and financial applications, and also supports regulatory compliance. And finally, ARK will be integrated across Circle's entire product portfolio and will also provide best-in-class USDC liquidity and interoperability across the wide range of blockchain networks we already support. We are very excited about ARK and have shared more information, including a brief paper and platform details on Circle.com and the ARK website. Now let's turn to growth and adoption. Just in the past few months, We've seen incredible engagement and interest in working with Circle from major firms in every sector of the financial system, as well as internet and technology companies, and this is consistent and accelerating all around the world. I'd like to highlight a few examples from our recent periods. In digital assets, we've launched and expanded key partnerships with Binance and OKEx, two of the largest exchanges in the world. With Binance, we've significantly expanded our partnership to include broader use of Circle technology. We're also continuing to see strong traction and partnerships in DeFi, including our planned launch of USDC on Hyperliquid, one of the fastest growing on-chain exchanges and ecosystems. Major cross-border payment firms like Remitly, MoneyGram, and Zeps are integrating USDC into their payment networks. And Stripe made USDC central to its new global stablecoin financial accounts for businesses. Visa, MasterCard, and others have publicly announced new products and plans that would expand availability and usage of USDC on their networks. I'm particularly excited that banking and payments infrastructure providers like Matera, Fiserv, FIS, and Corpay all announced deals with Circle to add stablecoin capabilities and our technology into their product infrastructure that combined serves tens of thousands of banks and financial institutions. Now turning to digital asset trading markets, which continue to remain a key priority and a significant growth opportunity for Circle. Since we launched initiatives to drive USDC in the digital asset markets in early 2024, Our share of spot trading volume has grown from 1% to 10% in Q2. And through our partnerships and growth initiatives, we are highly focused on continued market share gains. Digital asset firms globally are focused on working with the most trusted and compliant leader in stablecoins. To summarize, let me reiterate the advantages of our stablecoin network. Circle is uniquely positioned to lead in the mainstream adoption of blockchain and stablecoins. Our platform powers developers, enterprises, and institutions to build on the Circle stablecoin network, leveraging our deep liquidity infrastructure and seamless global bank connectivity. We provide primary liquidity in every major financial center and have facilitated over $1 trillion in USDC issuance and redemption since 2018. With internet scale distribution across wallets, payment providers, banks, and exchanges worldwide, Circle is becoming the default choice for institutions selecting Stablecoin Network. Our market neutral model invites broad adoption of our platform from even the most competitive players. Our trusted regulated status and longstanding policy engagement, capped by the passage of the Genius Act, fortifies our position as the industry's most reliable foundation. Together, these strengths create powerful competitive bulwarks and network effects that compound, driving exponential growth for Circle. With that, I will turn things over to our CFO, Jeremy Fox-Gein.