Financial Data and Key Metrics Changes - Revenues for fiscal Q2 2026 increased 136% to $6.5 billion from $2.7 billion in Q2 of the previous year, with a 69% increase excluding $2.5 billion of forward sales [11][12] - Net income attributable to the company for Q2 totaled $11.6 million, or $0.46 per diluted share, compared to $6.6 million, or $0.27 per diluted share in the same year-ago quarter [19] - EBITDA for Q2 fiscal 2026 totaled $33.9 million, an increase of 109% compared to $16.2 million in the same year-ago quarter [20] Business Line Data and Key Metrics Changes - Gold sales in Q2 fiscal 2026 were 545,000 ounces, up 17% from Q2 of last year, while silver sales were 18.6 million ounces, down 15% from Q2 of last year [22] - The number of new customers in the DTC segment was 96,100 in Q2 fiscal 2026, up 47% from Q2 of last year [23] Market Data and Key Metrics Changes - Premium spreads remained tight through the end of 2025, with backwardation in the silver market contributing to trading losses [7] - The problem with backwardation in Q2 has eased, and markets are moving back towards contango, which is positive for the trading business [9] Company Strategy and Development Direction - The company aims to integrate and realize cost savings and synergies from recent acquisitions while expanding both domestic and geographic reach [25] - The strategic investment from Tether is expected to enhance liquidity and provide opportunities for growth in the physical gold markets [25][84] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating rapidly evolving market conditions and highlighted increased consumer demand across platforms [7] - The company anticipates a strong quarter ahead, driven by elevated consumer demand and improved premium spreads [9][37] Other Important Information - The company has entered into an agreement with Tether Investments for a significant investment, which includes a gold leasing facility of no less than $100 million [4][5] - The board of directors declared a quarterly cash dividend of $0.20 per share, maintaining the current dividend program [21] Q&A Session Summary Question: Comparison of gold and silver performance in the December quarter - Management noted a shift back to silver, with silver representing about 50% of total volume, and premiums for one-ounce silver products significantly higher than three months ago [32][33] Question: Impact of widening spreads on profitability - Management indicated expectations for a strong quarter due to widening spreads [37] Question: Tether investment impact on profitability - Management expects a significant drop in interest expense and improved liquidity from the Tether investment [44] Question: Ability to keep products in inventory amid surging demand - Management stated that having two mints allows for greater product availability compared to competitors [48] Question: Future capacity and logistics facility expansion - Management indicated that while there is potential for future expansion, current focus remains on optimizing existing facilities [54] Question: Non-controlling items impact on GAAP earnings - Management identified Sunshine Mint's facility shutdown as a key issue affecting non-controlling items this quarter [57][58] Question: Strategic M&A efforts post-Tether agreement - Management confirmed that the Tether partnership supports continued growth and larger transactions in the physical gold markets [83]

Core Insights - Tether has acquired a $150 million minority stake in Gold.com, representing a 12% ownership, as part of its strategy to enter the gold market amid rising investor interest in gold for stability [1][2]. Investment Details - The investment allows Tether to integrate its gold-backed token, XAUT, into Gold.com's platform, which facilitates access to both physical and tokenized gold [2]. - Tether and Gold.com are exploring the possibility of enabling purchases of physical gold using Tether's USDT and the newly launched USAT stablecoin [2]. Market Context - Gold prices have recently surged, exceeding $5,000 per ounce, contributing to a significant increase in the blockchain-based gold token market, which grew from $1.3 billion to over $5.5 billion [3]. - Tether's XAUT token currently dominates the tokenized gold market, accounting for over 60% and is fully backed by physical gold stored in Swiss vaults [3]. Strategic Perspective - Tether's CEO, Paolo Ardoino, emphasized that gold serves as a long-term hedge against instability rather than a short-term trade, reflecting the company's commitment to protecting its user base [4]. - Tether also announced an investment in Anchorage Digital, a regulated crypto bank, further indicating its strategic expansion in the financial services sector [4].

Core Insights - Tether has invested $100 million in Anchorage Digital, valuing the bank at $4.2 billion [1][2] - Anchorage provides various services including custody, staking, settlement, and stablecoin issuance to institutional clients [2] - The investment positions Tether within the growing U.S. stablecoin infrastructure, which is increasingly favoring regulated entities [3] Company Overview - Anchorage holds a national banking charter in the U.S. and has a working relationship with Tether, serving as the banking partner for Tether's USAT stablecoin [2] - Tether, regulated in El Salvador, primarily targets offshore users and emerging markets with its $185 billion USDT token [3] Strategic Implications - Tether's investment reflects a commitment to secure and transparent financial systems, aligning with its mission to challenge existing financial structures [4] - The investment allows Anchorage employees to sell equity at the same valuation through a tender offer, indicating a focus on employee engagement and retention [1]

Core Insights - Tether's USDT stablecoin has seen significant growth in user adoption and market cap despite a challenging market environment for cryptocurrencies [1][3][4] Group 1: User Adoption and Market Performance - Tether added 35.2 million new users in Q4 2025, bringing the total estimated global user base to 534.5 million, marking the eighth consecutive quarter of over 30 million new users [4] - USDT's market cap reached $187.3 billion, increasing by $12.4 billion in just three months during a particularly difficult quarter for the crypto market [3][4] - On-chain holders of USDT increased to 139.1 million, representing approximately 70.7% of all stablecoin wallets, with monthly active on-chain users hitting a record 24.8 million [5] Group 2: Financial Reserves and Stability - Tether's reserves grew to $192.9 billion, with an excess equity of $6.3 billion over liabilities, providing a substantial buffer for redemptions [4] - The company reported full-year profits exceeding $10 billion, primarily driven by yields from substantial U.S. Treasury holdings [4] - Tether's U.S. Treasury exposure amounts to $141.6 billion, positioning it as a top-20 global holder, surpassing countries like Saudi Arabia and Germany in certain metrics [6] Group 3: Strategic Asset Allocation - Tether has increased its Bitcoin holdings to 96,184 coins, up approximately 9,850 in Q4 2025 [6] - The company has also accumulated 127.5 metric tons of physical gold, an increase of 21.9 tons quarter-over-quarter, stored in secure Swiss vaults [6][7] - Tether's strategy includes aggressive physical gold purchases, with a total of $24 billion at peak, aimed at diversifying reserves and hedging against fiat and debt risks [7]

Core Insights - Stablecoins are emerging as a significant use case in the blockchain space, particularly in South Africa, which is leading the way in crypto innovation on the continent [1][2] Group 1: South Africa's Crypto Landscape - South Africa has over $300 billion in stablecoin tokenized across various chains, primarily Ethereum and Solana, showcasing its leadership in the African tech scene [2] - The recent launch of ZARU, a stablecoin backed one-to-one by the South African rand, involves major local firms such as Luno, Sanlam, EasyEquities, and Lesaka, indicating a collaborative effort in the crypto space [4][5] Group 2: ZARU's Features and Implications - ZARU, launched on February 3, 2026, aims to bring the South African Rand onto blockchain rails, making it "internet-native" and competitive with major currencies like the Euro and USD [3][5] - The stablecoin offers efficiency in transactions, with instantaneous and low-cost settlements compared to traditional remittance methods, thus enhancing economic opportunities [6] Group 3: Regulatory Context and Market Trends - The launch of ZARU comes amid regulatory tensions in South Africa and a notable shift in local crypto adoption, with citizens increasingly favoring USD-backed stablecoins over speculative assets like Bitcoin [7][8] - Reports from the South African Reserve Bank (SARB) indicate that volumes related to USD-pegged stablecoins have increased over 20 times in the past three years, reflecting a structural shift in the market [8]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $1.248 billion, up 21% year-over-year, and cash EPS of $6.04, up 13% [4][14] - Full year revenue for 2025 was $4.528 billion, representing a 14% increase, with cash EPS of $21.38, up 12% [6][15] - Organic revenue growth for the full year was 10%, marking four out of the last five years with growth of 10% or higher [6][15] Business Line Data and Key Metrics Changes - Corporate payments segment grew 16% organically in Q4, driven by increased spend volumes, which rose 44% on a pro forma basis [15] - Vehicle payments segment achieved 10% organic revenue growth in Q4, with strong results across the U.S., Europe, and Brazil [16] - The lodging segment decreased by 7% year-over-year, with expectations of low single-digit growth in 2026 [17] Market Data and Key Metrics Changes - New sales or bookings increased by 29% year-over-year, indicating robust sales momentum [5] - Same-store sales turned positive, up 1%, while overall revenue retention remained stable at 92% [5][15] Company Strategy and Development Direction - The company aims to simplify its portfolio, focusing on corporate payments and divesting non-core assets like PayByPhone [9][21] - Key priorities for 2026 include enhancing U.S. sales, expanding payables, improving cross-border capabilities, and implementing AI solutions [10][12] - The company plans to leverage acquisitions, particularly the Alpha acquisition, to drive revenue growth and operational synergies [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2026 guidance, projecting revenue of $5.265 billion, up 16%, and cash EPS of $26, up 22% [8][22] - The macroeconomic environment is expected to be favorable, with stable tax rates and lower interest rates contributing to growth [9][22] - Management highlighted the importance of sales growth and retention in sustaining business momentum [34] Other Important Information - The company repurchased 1.7 million shares in Q4 for $500 million, with a total of $1.5 billion authorized for future buybacks [20] - The company has remediated a material weakness related to user access, which will be formally reported in the 10-K [25] Q&A Session Summary Question: Can you elaborate on payables monetization initiatives? - Management acknowledged the need to diversify payment options beyond virtual cards and is testing new methods like e-checks and instant payments, expecting to see impacts by Q2 or Q3 [27][28] Question: What is the organic revenue growth for domestic vehicle payments versus Brazil? - Domestic vehicle payments achieved approximately 5% organic growth for the quarter, with consistent results across Europe and Brazil contributing to the overall 10% growth [29][30] Question: What are the expectations for corporate payments growth? - Management indicated that the corporate payments segment has the sales pipeline to support mid-teens growth, although float revenue compression may impact results [43][44] Question: What are the lessons learned from the PayByPhone acquisition? - Management noted that while the initial thesis for the acquisition did not fully materialize, they successfully increased profits and are selling the asset for a profit [51] Question: What is the outlook for the lodging segment? - Management acknowledged the challenges in the lodging segment but noted stabilization and improvements in new sales as key to future growth [63]

Group 1: CME's Crypto Initiatives - CME Group is exploring the launch of its own cryptocurrency that could operate on a decentralized network, as confirmed by CEO Terry Duffy during the latest earnings call [2][5] - The company is also working on a "tokenized cash" solution in collaboration with Google, set to launch later this year, which involves a depository bank facilitating transactions [4] - Duffy emphasized the importance of the source of collateral, indicating a preference for tokens from systemically important financial institutions over those from lesser-known banks [3] Group 2: Market Performance and Technical Analysis - CME's average daily crypto trading volume reached a record $12 billion last year, with micro-ether and micro-bitcoin futures contracts being top performers [6] - CME stock has broken out from an inverse head and shoulders pattern, with a target price of $320, following a successful breakout above the neckline at $290 [7][9] - The stock is showing strong bullish momentum, with all EMAs in bullish alignment and an RSI of 72.99, indicating overbought conditions [8]

Group 1 - Fidelity has launched its U.S. dollar stablecoin, FIDD, making it accessible to both retail and institutional investors, indicating a growing interest in stablecoins as a cash layer in the crypto market [1][2] - The launch of FIDD aligns with a broader trend of established financial institutions deepening their involvement in crypto infrastructure beyond mere token trading [2][6] - FIDD operates on the Ethereum network, allowing for seamless interaction with various applications, wallets, and exchanges, enhancing its usability [4][5] Group 2 - The timing of Fidelity's launch is significant due to the establishment of clearer U.S. regulations for stablecoins, which reduces legal risks for large firms [6] - The introduction of FIDD signifies a shift in trust from crypto-native issuers to traditional finance, as major U.S. stablecoins gain traction through scale and brand recognition [6][9] - The global trend shows governments and firms racing to define digital dollars, with many central banks exploring their own digital currencies, increasing pressure on private stablecoins to maintain transparency and compliance [8]

Group 1 - BBVA has joined Qivalis, a consortium of lenders aiming to introduce a regulated euro stablecoin to compete with the dominance of digital dollars [1] - The group now includes a dozen major EU banks, such as BNP Paribas, ING, and UniCredit, with BBVA's assets totaling $800 billion [1] - The project aims to create a token backed by established banks, providing an alternative to dollar-tied crypto-native stablecoins [2] Group 2 - Currently, only $860 million of the $300 billion stablecoin market is tied to the euro, with Tether and Circle Internet dominating the market with $185 billion and $70 billion respectively [2] - A euro-pegged coin would enable EU businesses and consumers to conduct blockchain-based payments in euros without relying on external financial systems [3] - Collaboration among banks is essential to establish common standards for the future banking model, as stated by BBVA's head of partnerships and innovation [3] Group 3 - BBVA's participation signifies the commitment of European banks to develop a European on-chain payment ecosystem based on trust [4] - Qivalis is seeking authorization from the Dutch central bank to operate as an electronic money institution, a necessary step under the EU's MiCA regulatory framework [4] - The project plans to launch the euro stablecoin in the second half of 2026 [5]

Core Insights - Trust Stamp has filed for the trademark "WOW" for its biometrically secured Wallet of Wallets product aimed at consumers [1] - The global digital wallet user base is approximately 4.5 billion, projected to reach 6 billion by 2029, with significant amounts of digital assets believed to be lost in dormant wallets [2] - The Wallet of Wallets technology can be implemented on a white-labeled basis for financial institutions and nation-state customers [3] Company Overview - Trust Stamp is a global provider of AI-powered services across various sectors, including banking, finance, healthcare, and government, focusing on reducing fraud and enhancing data security [3][4] - The company operates with a diverse team from 22 nationalities across 10 countries and is listed on the Nasdaq Capital Market [4] Product Features - The WOW Wallet eliminates the need for memorizing passwords and can serve as a non-custodial wallet for multiple digital assets [6] - It utilizes a proprietary StableKey generated by tokenized facial biometrics, ensuring high security and resistance to tampering [6] - The wallet incorporates zero-knowledge-proof protocols for identity verification and offers secure recovery and transfer options [6]