PresentationPeter ChristiansenCitigroup Inc., Research Division At Citi's 14th Annual Fintech Conference. My name is Peter Christiansen on Citi's Research Team covering a number of digital assets companies, and I am more than delighted to welcome Jeremy Allaire, CEO, Co-Founder of Circle. Jeremy, just fantastic to have you here. I think you might be the busiest person out there. I can't -- when I think about the inbounds and the activity and client interest that we are having with the stablecoin theme, and ...

Summary of Circle Internet Group (NYSE:CRCL) FY Conference Company Overview - **Company**: Circle Internet Group - **Ticker**: NYSE:CRCL - **Event**: FY Conference held on November 19, 2025 Key Industry Insights - **Stablecoin Adoption**: There has been a significant increase in client interest in stablecoins, indicating a growing trend in the digital assets market [2][3] - **Regulatory Environment**: The implementation of the Genius Act and other regulatory frameworks is expected to enhance the legal certainty around stablecoins, facilitating their mainstream adoption [5][6][23][24] - **Global Expansion**: Circle is focusing on expanding its stablecoin network globally, particularly in regions with intrinsic demand for digital cash [17][18] Core Business Developments - **Stablecoin Network**: Circle's stablecoin network is the largest regulated stablecoin network globally, handling nearly $10 trillion in on-chain transactions in Q3, with a year-over-year growth of 108% in circulation [12][16] - **Revenue Growth**: The stablecoin network generated $740 million in top-line revenue, showcasing strong year-over-year growth [12] - **Infrastructure Development**: Circle is developing the Arc blockchain, a layer one network designed for regulated financial activities, currently in beta testing with major financial institutions [14][15] Strategic Focus Areas - **User Experience and Infrastructure**: Circle emphasizes the importance of user-friendly experiences and robust infrastructure to drive adoption [4][5] - **Operational Readiness**: The company is preparing for a gradual shift in enterprise adoption of blockchain technology, which is expected to be incremental rather than immediate [7][8] - **Full-Stack Development**: Circle aims to build a comprehensive ecosystem around its stablecoin network, including applications for financial institutions to facilitate international money movement [15][22] Market Opportunities - **Growth Potential**: The total market size for digital cash products is projected to grow from $300 billion to multiple trillions over the next five years, with significant opportunities for Circle's stablecoin network [16][17] - **Tokenization and Digital Assets**: The growth in tokenization and digital assets is seen as a catalyst for Circle's business, with regulatory clarity expected to enhance market participation [25] Challenges and Future Outlook - **Adoption Cycle**: Circle acknowledges that it is still early in the adoption cycle for its stablecoin network and is focused on expanding distribution relationships globally [16][17] - **Regulatory Implementation**: While the Genius Act is now federal law, its full implementation will take time, and the market is beginning to adapt to its provisions [23][24] - **AI Integration**: Circle envisions stablecoins playing a crucial role in the future AI-native economy, facilitating transactions for AI agents and enhancing the velocity of money [44][45][48] Additional Insights - **Smart Contracts**: Circle is developing smart contract capabilities to enhance programmability and efficiency in financial transactions, with ongoing R&D for new protocols [39][40][42] - **Competitive Landscape**: The company is positioning itself to leverage competitive advantages in cost and speed over traditional payment systems, aiming to create a more efficient marketplace for cross-border transactions [28][35][38] This summary encapsulates the key points discussed during the Circle Internet Group FY Conference, highlighting the company's strategic direction, market opportunities, and the evolving landscape of digital assets and stablecoins.

Core Insights - Circle Internet Group, Inc. is scheduled to report its third-quarter 2025 results on November 12, with expectations of strong performance driven by the growth of its stablecoin, USD Coin (USDC) [1][8] Financial Performance - The Zacks Consensus Estimate for third-quarter revenues is $708.92 million, with earnings expected at 17 cents per share, revised upward by 5 cents in the last 30 days [2] - In the second quarter of 2025, Circle reported adjusted earnings of $1.02 per share, significantly exceeding the Zacks Consensus Estimate of 29 cents [3] Earnings Predictions - Circle has an Earnings ESP of +14.16% and holds a Zacks Rank 3 (Hold), indicating a favorable outlook for an earnings beat [4][5] Growth Drivers - The company experienced a rise in USDC circulation from $61.3 billion to $65.2 billion as of August 10, 2025, with on-chain USDC transaction volume reaching nearly $6 trillion in the second quarter, a 5.4 times increase year-over-year [6][8] - Institutional demand is increasing, with USDC held within Circle's platform growing tenfold compared to last year, representing 10% of total USDC circulation [7][9] Product Expansion - New products like the Circle Payments Network and Circle Gateway are enhancing global payment capabilities, with significant interest from over 100 financial institutions [8][9] - The launch of Arc, a new Layer-1 blockchain, is expected to further support Circle's growth in the payments sector [9] Market Performance - Circle shares have increased by 20.2% since their market debut on June 5, 2025, outperforming the Zacks Financial - Miscellaneous Services industry, which grew by 1.8% during the same period [10] - The stock's forward 12-month price-to-sales (P/S) ratio is 8.18X, significantly higher than the industry average of 3.25X, indicating a premium valuation [12][16] Competitive Landscape - Circle is expanding partnerships with major exchanges and payment infrastructure companies, enhancing USDC adoption in traditional finance [18] - However, the company faces competition from established players like Coinbase, PayPal, and Fiserv, which could impact its market share [19][21] Long-term Outlook - The improving regulatory environment and growing demand for stablecoins like USDC are positive indicators for Circle's long-term prospects [17][20]

Core Insights - Circle is advancing towards the launch of its payments-focused Arc blockchain, with a public testnet now available for over 100 institutional partners [1][5] - The stablecoin market, valued at $300 billion, is increasingly integrated into traditional finance, with projections indicating stablecoins could reach $4 trillion by the end of the decade [3][4] - Arc aims to facilitate various financial services, including tokenized funds and cross-border payments, with features like U.S. dollar-based fees and sub-second settlement [5] Industry Engagement - Major financial institutions such as Visa, HSBC, BlackRock, and Deutsche Bank are participating in the Arc testnet, exploring its potential for enhancing payment infrastructure and capital markets [6][7][8] - The involvement of both traditional finance and digital asset firms highlights a growing interest in blockchain technology for operational efficiencies and transparency in financial transactions [6][8] - Companies like Invesco and Société Générale are specifically testing how Arc can improve the efficiency of tokenized funds and programmable settlement processes [8]