India is preparing to launch ARC, a regulated rupee-backed stablecoin designed to work with its CBDC and curb reliance on USDT and USDC. | Credit: Getty Images. Key Takeaways India is preparing to launch ARC, a rupee-backed, fully regulated private stablecoin. ARC is designed to coexist with the RBI’s digital rupee (CBDC), not compete with it. The initiative aims to curb reliance on foreign stablecoins and keep liquidity onshore. The ARC rollout is expected as early as Q1 2026. After years of c ...

We bring in our panel to discuss the circle earnings and take a look really at crypto big picture. Todd Stanowitz, co-portfolio manager of the free markets ETF and Kevin Leitinity. You say it you >> Linity.You were close. You did a pretty good job. >> Um CEO of Borderless XYZ.I'm so glad you're both with us today. Thank you. Um Kevin, how are we feeling.I mean we saw the circle numbers really the fact that the company really saw um the doubling of the US digital coins I mean that helped it along but the cos ...

Circle Internet Group (NYSE:CRCL) Q3 2025 Earnings Call November 12, 2025 08:00 AM ET Speaker0Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome you to the Circle Group Circle Internet Group Third Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.Thank you. I would n ...

Financial Data and Key Metrics Changes - Adjusted revenue increased by 21% year-over-year, while adjusted EBITDA declined by 17%, which was better than internal projections [4][16] - Non-GAAP revenue is expected to be between $2 billion and $2.1 billion, with adjusted EBITDA guidance raised to $165 million to $175 million [26][27] Business Line Data and Key Metrics Changes - B2B segment revenue grew over 30%, driven by a significant BaaS partner and overall growth in the BaaS portfolio [17] - Money Movement segment revenue grew year-over-year, with margins improving due to better-than-expected loss rates on taxpayer advance programs [20][22] - Consumer Services segment revenue is projected to decline in the low double digits, but declines in active accounts have moderated compared to previous years [23][28] Market Data and Key Metrics Changes - The embedded finance market is experiencing robust growth, with 94% of surveyed companies planning to increase spending on embedded finance [15] - The partnership with Stripe is expected to open up significant opportunities in the SMB market, which is a new area of focus for the company [12][30] Company Strategy and Development Direction - The company is focused on strengthening its revenue engine by signing new partners and investing in infrastructure for sustainable long-term growth [5][6] - The strategic review is ongoing, with updates to be provided as appropriate [4] - The exit from Shanghai operations is part of a strategy to optimize platforms and reduce operational risks [5][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the B2B segment and the potential of the embedded finance market [29][36] - The company is optimistic about the upcoming launches and partnerships, which are expected to drive future growth [30][31] - Management acknowledged ongoing challenges in the Consumer segment but remains committed to enhancing customer engagement and retention [24][28] Other Important Information - The company is implementing an internal project called Project 30 to reduce onboarding times for new partners [46][47] - A new restructuring line item on the GAAP P&L reflects costs associated with exiting the Shanghai operation [25] Q&A Session Summary Question: What is driving the strong demand for embedded finance? - Management indicated that companies are increasingly viewing embedded finance as a strategic imperative to deepen customer relationships and monetize them [39][40] Question: Can you discuss the timeline to revenue from new signings and onboardings? - The timeline for implementation varies, generally taking six to eight months, with efforts underway to reduce this to 30 days [42][46] Question: How is the company focusing its efforts on embedded finance? - The focus is on targeting large brands with significant customer bases, while also exploring mid-market opportunities as onboarding times are reduced [53][54] Question: What impacts are expected from partnerships with Workday and Stripe? - The integration with Workday is expected to facilitate access to a larger number of employers, while the partnership with Stripe is anticipated to significantly enhance cash deposit services [55][57]

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Core Insights - The article discusses the launch of ARC, a blockchain network infrastructure aimed at facilitating financial and economic activities on the internet, announced by Circle, the largest stablecoin issuer [2][4][7] - Major financial and technology firms are collaborating with Circle to migrate existing financial systems to a more internet-native model, utilizing smart contracts and blockchain technology [4][6][10] Company Developments - Circle has introduced ARC as an economic operating system for the internet, designed to support various financial activities such as payments, lending, and capital market functions [2][4][7] - The company anticipates significant revenue potential from ARC, not only for itself but also for the broader ecosystem that builds on this infrastructure, with opportunities in transactional revenues [8][9] Market Trends - There is a growing global demand for USDC, particularly in emerging markets, with significant interest noted in the Middle East for its ability to facilitate efficient and cost-effective transactions [10][12][13] - The market cap of USDC is reported to be around $76 billion, with nearly 100% annual growth observed since the passage of the genus act, indicating a dynamic and expanding market [14][15]

Financial Data and Key Metrics Changes - In Q3, the company reported revenue of $13.7 billion, exceeding guidance and up 6% sequentially [22][23] - Non-GAAP gross margin was 40%, four percentage points better than guidance, driven by higher revenue and a favorable mix [23] - Earnings per share for Q3 were $0.23, compared to guidance of breakeven EPS, attributed to stronger gross margin and cost discipline [23] - Operating cash flow was $2.5 billion, with gross CapEx of $3 billion and positive adjusted free cash flow of $900 million [23] Business Line Data and Key Metrics Changes - Intel products revenue was $12.7 billion, up 7% sequentially, supported by strong demand in both client and server segments [25] - Client Computing Group (CCG) revenue was $8.5 billion, up 8% quarter over quarter, driven by a stronger TAM and Windows 11 refresh [25][26] - Data Center and AI (DCAI) revenue was $4.1 billion, up 5% sequentially, driven by improved product mix and higher enterprise demand [26][27] - Intel Foundry revenue was $4.2 billion, down 4% sequentially, but operating loss improved by $847 million due to favorable comparisons [29][30] Market Data and Key Metrics Changes - The company noted healthy customer purchasing behavior and inventory levels, with industry supply tightening materially [21] - The demand for server CPUs is expected to grow due to the accelerating build-out of AI infrastructure [21][27] - The client consumption total addressable market (TAM) is projected to approach 290 million units in 2025, marking two consecutive years of growth [26] Company Strategy and Development Direction - The company is focused on rebuilding its market position through AI and enhancing its x86 architecture to support hybrid compute environments [10][19] - Strategic partnerships, particularly with NVIDIA, are aimed at creating new classes of products that accelerate AI adoption [10][11] - The company is committed to improving its engineering and design execution, including the establishment of a central engineering group to unify functions [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding macroeconomic volatility but noted strong demand driven by AI and traditional compute [21] - The company is focused on shoring up its balance sheet and has secured approximately $20 billion in cash through strategic partnerships [23][24] - Management emphasized the importance of building long-term trust with customers in the foundry business and the need for improved yield and reliability [48][50] Other Important Information - The company is on track to launch its first Pentelic SKU by year-end, with additional SKUs expected in the first half of next year [12] - The company is prioritizing wafer capacity for server shipments over entry-level client parts due to tight supply conditions [33] - The company plans to maintain disciplined capital expenditures while being flexible to respond to demand [62] Q&A Session Summary Question: Foundry collaborations and increased confidence - Management indicated that collaborations, particularly with SoftBank, are enhancing confidence in the foundry business due to increased demand for AI infrastructure [38] Question: Gross margin outlook for 2026 - Management noted that while Altera's absence will be a headwind, they expect improvements in foundry gross margins driven by scale and leading-edge mix [42][44] Question: Customer commitments for foundry investments - Management emphasized the importance of building trust with customers and demonstrating yield improvements to secure commitments for foundry investments [48][50] Question: Supply constraints in server CPUs - Management acknowledged that shortages are widespread, particularly in Intel 10 and 7, and are working to manage demand and inventory [54][55] Question: Demand outlook for 2026 - Management indicated that demand is expected to outpace supply in both server and client markets, with potential improvements anticipated later in the year [60] Question: Investments in CapEx and product businesses - Management stated that the focus remains on deleveraging, but they are open to increasing CapEx if customer demand justifies it [62] Question: Update on NVIDIA relationship - Management highlighted the importance of the collaboration with NVIDIA, which is expected to create new product opportunities in the AI space [91][94]

Financial Performance - Revenue bump is driven by growth [1] - Saw a 90% year-over-year growth in US DC in circulation on the network [2] - Other revenue grew 250% year-on-year, adding a couple hundred basis points to margins [4] - Adjusted EBIT growth of 52% with a 50% adjusted EBIT margin [4] - In Q2, $6 trillion of transactions occurred on the network, with acceleration into Q3 [12] - Year-to-date growth of 49% as of August 10th [14] Business Strategy & Development - Circle positions itself as an Internet platform and network utility company, providing a full stack for financial institutions to leverage Stablecoin finance [6] - Building an application layer through Circle payments network and announced a new blockchain network ARC [3] - ARC is purpose-built for Stablecoin finance, with transaction fees paid in USDC [6] - Focuses on growing the money stock on the network, with optimistic views of 90% category growth for stablecoins over the next five years [13] - Primarily focused on organic growth and software-powered innovation, but has made three acquisitions this year to augment product development [16][17]

Financial Data and Key Metrics Changes - USDC in circulation reached $61.3 billion at the end of Q2 2025, representing a 90% year-over-year growth, and increased to $65.2 billion by August 10, 2025, marking a 6.4% growth since quarter-end [7][26] - Total revenue and reserve income increased by 53% year-over-year to $658 million in Q2 2025, while total distribution transaction and other costs rose by 64% year-over-year to $407 million [26][27] - Adjusted EBITDA for Q2 2025 was $126 million, up 52% year-over-year, with a 50% adjusted EBITDA margin [28] Business Line Data and Key Metrics Changes - USDC on-chain transaction volume grew 5.4 times year-over-year to nearly $6 trillion, with a significant acceleration into Q3 [7][25] - CCTP volume also showed strong growth, up 4.1 times year-over-year, indicating the importance of blockchain interoperability [25] - Other revenue increased to $24 million in Q2 2025, up 3.5 times year-over-year, driven by a $13 million increase in subscription and services revenue [27] Market Data and Key Metrics Changes - The total addressable market for stablecoins is estimated to be massive, with dollar stablecoins representing only 1% of the U.S. M2 money supply [8][9] - The company operates the largest regulated stablecoin network globally, with significant growth driven by partnerships with major financial institutions and technology companies [10][11] Company Strategy and Development Direction - The company aims to build a new Internet financial system using blockchain and digital currency, focusing on mainstream adoption of stablecoins [6][7] - The launch of the Circle Payments Network (CPN) and the new Layer 1 blockchain network, Arc, are key initiatives to enhance global money movement and financial services [12][15] - The Genius Act is expected to accelerate stablecoin adoption among major financial institutions and enterprises, creating a favorable regulatory environment [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the rapid expansion of commercial opportunities post-IPO and the Genius Act, with increasing interest from various sectors [8][11] - The company anticipates a conservative multi-year growth rate of 40% CAGR for USDC, with other revenue expected to range between $75 million and $85 million for 2025 [30][32] - Management emphasized the importance of building strong partnerships and the long-term potential of the stablecoin market [29][30] Other Important Information - The company has reserved 2.7 million shares of Class A common stock for future donations to the Circle Foundation as part of its corporate impact commitment [8] - The company is focused on enhancing its liquidity capabilities and expanding its partnerships with global financial institutions [12][18] Q&A Session Summary Question: Insights on ARC and its revenue model - Management highlighted that ARC is designed to support mainstream regulated financial institutions and that gas fees denominated in USDC could become a source of revenue [34][36] Question: Details on the USYC partnership with Binance - The partnership with Binance includes deeper integration of Circle's wallet technology and aims to promote USDC and USYC as yield-bearing collateral [39][41] Question: Understanding transaction volume versus circulation - Management explained that the high velocity of USDC transactions is due to improvements in blockchain technology, allowing for faster and cheaper transactions [48][50] Question: Future milestones for CPN - The focus is on activating more payment corridors and enhancing product features based on market demand [54][56] Question: Payment networks and competition - Management stated that the company views itself as part of a broader ecosystem, encouraging multiple networks to utilize USDC [64][66] Question: Adoption of USDC in remittance - The company is seeing increased demand for USDC in remittance, with partnerships expanding in this area [76][78] Question: Partnership with OKX - The partnership with OKX aims to integrate Circle Wallet technology and enhance liquidity for USDC among its 60 million users [82][84] Question: Growth post-Genius Act - Management noted a significant increase in institutional interest and engagement since the passage of the Genius Act, indicating a positive market response [94][96]

Financial Data and Key Metrics Changes - USDC in circulation grew to $61.3 billion at June 30, representing a 90% year-over-year increase, and reached $65.2 billion by August 10, marking a 6.4% increase since quarter-end [7][28] - Total revenue and reserve income increased by 53% year-over-year to $658 million in Q2, while total distribution transaction and other costs rose by 64% year-over-year to $407 million [28][29] - Adjusted EBITDA was $126 million in the quarter, up 52% year-over-year, resulting in a 50% adjusted EBITDA margin [30] Business Line Data and Key Metrics Changes - USDC on-chain transaction volume grew 5.4 times year-over-year to nearly $6 trillion, with $2.4 trillion in transactions recorded in July alone [7][27] - CCTP volume also showed significant growth, up 4.1 times year-over-year, indicating the importance of blockchain interoperability [27] - Other revenue increased to $24 million in Q2, up 3.5 times year-over-year, primarily driven by a $13 million increase in subscription and services revenue [29] Market Data and Key Metrics Changes - The total addressable market for stablecoins is considered massive, with dollar stablecoins representing only 1% of the U.S. M2 money supply [9] - The company operates the largest regulated stablecoin network globally, with significant growth driven by partnerships with major financial institutions and technology companies [11][22] Company Strategy and Development Direction - The company aims to build the largest stablecoin network, leveraging its platform to support developers, enterprises, and institutions [24] - The launch of the Circle Payments Network (CPN) is a key initiative to transform international money movement, with active payment corridors already established in several countries [13][58] - The introduction of ARC, a new Layer 1 blockchain, is designed to support stablecoin finance and enhance transaction efficiency [15][93] Management's Comments on Operating Environment and Future Outlook - Management highlighted the rapid expansion of commercial opportunities post-IPO and the positive impact of the Genius Act on stablecoin adoption [12][99] - The company anticipates a conservative multi-year growth rate of 40% CAGR for USDC, reflecting the increasing demand for stablecoins across various sectors [31][108] - Management emphasized the importance of building strong partnerships and the need for financial institutions to integrate new technologies, which may take time [100] Other Important Information - The company has committed to corporate impact by reserving shares for future donations to its foundation [9] - The regulatory environment is seen as a significant tailwind for the company's growth, particularly with the passage of the Genius Act [12][100] Q&A Session Summary Question: Thoughts on ARC and its revenue model - Management expressed excitement about ARC and its potential to underpin stablecoin finance, with gas fees in USDC expected to become a revenue source [35][39] Question: Details on USYC and partnership with Binance - The expanded partnership with Binance includes deeper integration of Circle's wallet technology and aims to promote USDC and USYC as yield-bearing collateral [40][44] Question: Understanding transaction volume versus circulation - Management explained that the high velocity of USDC transactions reflects improvements in blockchain technology and growing payment utility [50][53] Question: Milestones for CPN and its relationship with ARC - The focus is on activating more payment corridors and developing self-service tools for institutions to integrate with CPN [58][60] Question: Payment networks and competition - Management views USDC as a market-neutral infrastructure that supports various payment networks, emphasizing the importance of growing utility and distribution [64][66] Question: Adoption of USDC in remittance - The company is seeing increasing demand for USDC in remittance, with partnerships expanding in both consumer and B2B segments [78][80] Question: Partnership with OKX - The partnership with OKX aims to enhance liquidity and promote USDC to a large user base, contributing to the growth of the network [82][86] Question: Distribution and gas fees for ARC - Management discussed the goal of having a distributed network of professional validators for ARC, ensuring low and predictable transaction costs [90][92] Question: Impact of the Genius Act on growth - Management noted a significant increase in institutional interest post-Genius Act, which is expected to drive further adoption of USDC [95][100]