A：Circle's vision is to build an internet financial system that guides the transformation of the global financial system through the collision of open internet infrastructure with traditional financial systems.

A：The first layer of the internet financial platform being built by Circle consists of blockchain networks, which are serving as foundational operating systems for economic activity on the internet.

A：The significance of USDC's circulation growth and on-chain transaction volume is that they have shown strong year-over-year increases, with circulation growing 108% year over year to 73.7 billion and on-chain transaction volume growing 580% year over year to $9.6 trillion, underscoring the increasing velocity and efficiency of using USDC as a medium of exchange.

A：For the third quarter, the company had total revenue and reserve income of $740 million, a 66% year-over-year increase. Adjusted revenue grew 8% year over year to $166 million with a 57% adjusted EBITDA margin, a 737 basis point expansion.

A：The launch of the Arc public testnet is significant as it marks a critical milestone in bringing stablecoin finance and real-world economic activity onto blockchain. The testnet launched with participation from over 100 major companies from various sectors of the financial industry, signaling strong early momentum for the Arc network.

A：The role of the Arc network in Circle's strategy is to act as an economic operating system (OS) for the internet, enabling the migration of coordination, governance, value storage, financial contracts, and other economic intermediation into a software-powered and AI-driven economic system. It serves as a platform for building a full stack internet financial platform company.

A：Circle is exploring the possibility of launching a native token on the Arc network, which could be an important component for driving utility incentives, growth, and governance of the Arc network.

A：Key developments in the Circle Payments Network include product expansion with multiple releases and significant growth in transaction volumes, as well as the launch of Cpn console for streamlined onboarding, integration, and operation of payment flows, and the introduction of Cpn payouts for automated stablecoin payouts.

A：The core infrastructure of Circle's stablecoin network includes being regulated, audited, public, transparent, compliant, having a core liquidity infrastructure with systemically important banks, banking connectivity around the world, providing minting and redemption, and a broad distribution across blockchain networks and ecosystems.

A：The monthly total payment volume on the platform has seen over a 100 times growth from the first full month to November 7, with an annualized transaction volume of $3.4 billion based on trailing 30 days.

A：In the third quarter, USDC in circulation grew to 73.7 billion, more than doubling year on year. Total revenue and reserve income increased 66% year on year to 740 million. The total distribution and transaction costs increased 74% year on year to 448 million. The LDC margin was 39.5%, and other revenues increased to 29 million from less than 1 million in the prior year.

A：The USDC circulation outlook for the full year 2025 remains long-term and through cycle, with an increase in other revenue full year guidance to 90 to 100 million. It is expected that the LDC margin will end the year around 38% at the high end of the range.

A：Circle is focusing on growing the network without immediate attention to monetizing it. The strategy involves adding quality participants rather than quantity, ensuring the new members have strong local liquidity, and meet the slas of the network. The focus is on participants with meaningful flows and reach into various businesses. Monetization opportunities include small fees for new, efficient internet-scale architectures, and the potential for currency flows to generate value for users and businesses on the platform.

A：Governor Waller is suggesting a fundamental change in the financial system architecture, shifting from digital cash instruments like stablecoins to financial contracts and primitives expressed in code, facilitated by blockchain technology.

A：Circle intends to be the leading internet platform company for the new internet financial system era, contributing to the development and infrastructure necessary for this transition.

A：Circle's growth is attributed to regulatory clarity, advancements in technology, and the entry of major financial institutions, payments firms, neobanks, and large enterprises into using stablecoins in their products and services.

A：The introduction of a native token for the Arc network is designed to provide utility for users, align incentives for network growth, and offer a governance method for the evolution of the network.

A：Arc network infrastructure is designed to interoperate with the current financial system by providing best-in-class, low-cost, and regulatory-ready services for digital assets and stablecoins, which can be integrated into applications on the Cpn platform.

A：Circle's payment network is being integrated with the Cpn platform, leveraging stablecoins like USDC and EURC, and the tokenized money market fund product uyc, to build a robust digital asset operating system.

A：The growth in Circle's payment network pipeline is driven by the adoption of stablecoin infrastructure by established firms seeking to improve capital efficiency, reduce collateral requirements, and enhance the speed and user experience of their money movements.

A：Circle plans to manage the costs associated with expanding its payment network by embedding AI technologies in its scalable infrastructure. This approach allows for growth without linearly increasing costs, maintaining strong operating leverage.

A：The role of liquidity networks in stablecoin payments is to ensure strong direct liquidity between stablecoins and the stablecoin network and local markets, with the aim of enabling efficient and cost-effective capital movement.

A：Circle's technology is designed to support traditional financial institutions by offering simple, safe, and well-surrogated processes for them to build applications, deploy them, and utilize these networks.

A：Circle's M&A strategy is to use acquisitions as an accelerant to its core offerings in the blockchain, digital asset, and application spaces, without seeking to diversify outside of these areas.

A：Partnerships with firms that have strong distribution and are growth-oriented have been instrumental in Circle's platform growth, as these partnerships have met the criteria for economic relationships and growth potential.

A：The potential uses or utilities for the Arc network beyond transaction fees include broader economic incentives, stakeholder participation, and governance across the full ecosystem. There is an exploration for a token for the Arc network to align with these objectives.

A：The decline in transaction revenue was attributed to a spike in redemption fees in the prior quarter related to a repositioned uyc tokenized money market fund product, which masked the underlying growth trends in other products and services. Despite this, the uyc itself has returned to growth and is now the second largest tokenized money fund product in the world.

A：The step-down in RLD DC margins is attributed to dynamics in the market related to rewards and distribution costs. Initially, it was expected that performance on Circle's platform and other high-margin revenue would improve over time, but market-related dynamics have led to the contrary. Specifically, the speaker hints at a need to consider the impact of rewards and distribution costs in understanding the decline in margins.

A：Several factors contribute to the network effects and success of USDC. These include its interoperability around the world, which gives it significant reach and utility for developers and B2B firms looking to provide utility to their users. USDC's extensive liquidity network, which integrates with major banking systems, brokerages, exchanges, and other financial platforms globally, is another key factor. Additionally, regulatory and infrastructure advantages, such as being well-integrated and supervised by central banking regimes, also play an important role in USDC's success.

A：It is important to look at trading liquidity, the number of wallets holding USDC, and the distribution of USDC because these metrics help in understanding the actual market activity and user adoption of USDC. Despite an increase in players entering the stablecoin market, these indicators provide insight into the real growth and the market share of USDC. The implication is that a 'winner takes most' market structure is emerging, and continued focus on these metrics will be important for investors and participants in the market.

A：Circle's strategy to capitalize on the growth of the internet financial system and the use of USDC involves leaning into major platform developments that are critical to winning in this space. They are focusing on commercial tailwinds resulting from technology progress and regulatory clarity. Circle aims to step into these opportunities to continue being an outsized winner in the upgrade of the financial system to the internet.

A：Circle does not provide full-year or quarterly financial guidance other than on a few key metrics because they are in the early stages of a megatrend with an exponential growth curve. The company believes that focusing on short-term fluctuations would miss the broader growth trajectory, as these early stages are characterized by rapid development and can exhibit significant variability.

A：Circle is not agnostic to the use cases of USDC and sees it as a versatile form of money across various use cases. However, they acknowledge its broad application and don't focus on specific use cases. The most imminent use cases for USDC beyond crypto trading include international and cross-border payments, which have been a major driver of growth for Circle. They are seeing mainstream flows and partnerships that indicate this area is driving activity and growth. Circle also sees demand for USDC as a store of value from both firms and households, and they are closely watching developments like the Digital Dollar Act that could influence how the dollar is exported and utilized internationally.

A：Traditional financial markets are embracing stablecoins as collateral for relative margin and for settlement. Examples of institutions involved include clearinghouses, derivatives exchanges, and companies like Intercontinental Exchange and Deutsche Boerse Group.

A：Traditional financial institutions are launching smart contracts and digital tokens, often backed by USDC as their primary cash leg and settlement leg. Firms like Circle play a role in driving the use of USDC in these tokenized investment products.

A：The Genius Act has significantly influenced major institutions to start embracing and using blockchain technology and USDC, which in turn has impacted regulators globally to conform and ensure well-regulated products like USDC can operate within their local markets.

A：There is growth happening in cross-border use cases with USDC. According to Artemis, a third-party firm, there has been strong growth in business-to-business international payments. This growth is indicative of the partnerships formed in the cross-border payment space and reflects the use of USDC in international settlements beyond what occurs within commercial paper (CPN) flows.

A：The discussion around market structure legislation suggests that there might be provisions allowing stablecoin distributors to use rewards as incentives on their platforms. Circle's position is that the language in the Genius Act is suitable, as it maintains the consideration of stablecoins as cash and cash equivalent instruments while supporting business model innovation for stablecoin distributors.

A：New partners are not just receiving full fare; the economics are influenced by the powerful global utility of USDC and its network effects. Partners must show a commitment to distribute and integrate with USDC, going beyond mere support to actively promoting and driving growth for both parties to negotiate better economics.