Circle Internet Group Q3 FY2025 earnings call

• Vision: An Internet financial system where blockchain networks, digital assets, and application utilities form a full-stack platform. - Growth: USDC circulation up 108% YOY, onchain transactions up 580% YOY, stablecoin market share growth. - Product Launches: Arc launched into public testnet with over 100 major participants; exploring native token on Arc Network. - Circle Payments Network: Expanded product portfolio, 29 financial institutions enrolled, 500+ pipeline of institutions, strong TPV growth. - Stablecoin Network: 5 new chain launches, 28 supported chains, adoption across various use cases and industries.

In Q3, USDC in circulation grew 108% year-over-year to $73.7 billion. Onchain transactions using USDC grew 580% year-over-year to $9.6 trillion. Stablecoins in circulation grew 59% year-over-year, with Circle's share increasing to 29% in Q3. Visa's analysis shows stablecoin transaction volumes grew ~130% YOY with USDC's share at 40% in Q3. USDC held within Circle's platform infrastructure grew nearly 14x YOY to $10.2 billion, representing 14% of total circulation.

• Increased other revenue full year 2025 guidance to $90 million to $100 million. - Adjusted operating expenses for the year increased to $495 million to $510 million. - RLDC margin expected to end the year around 38% at the high end of the range.

Q: How should investors think about the pipeline developing for Circle Payments Network and monetization?

A: Jeremy Allaire noted focus on quality participants, not just quantity, and underwriting for quality. Jeremy Fox-Geen mentioned focused on growing the network first, with monetization to come from small fees over time.

Q: Reaction to Fed official's comments on DeFi/crypto and Circle's seat at the table?

A: Jeremy Allaire said Circle is in alignment, with infrastructure fundamental to the emerging onchain and DeFi financial system, and Circle intends to be a leading Internet platform company for this new age.

Q: Exploration of native token on Arc Network?

A: Jeremy Allaire explained Arc Network is being built with major institutions, and a native token could provide utility, align incentives, and enable governance, with active evaluation ongoing.

Q: Catalysts and costs for Circle Payments Network pipeline?

A: Jeremy Allaire cited quality flows from major markets as catalysts. Jeremy Fox-Geen noted costs will increase with onboarding and monitoring, but built in a scalable, cost-efficient manner.

Q: On-platform USDC and M&A thoughts?

A: Jeremy Allaire discussed partnerships with growth-oriented firms. Jeremy Fox-Geen mentioned M&A as accelerative to core offerings, with 3 deals closed in 2025 and more expected.

Q: Implied RLDC margin step down and guidance?

A: Jeremy Fox-Geen explained complexity in underlying dynamics, with a modestly conservative guidance approach focusing on line of sight.