Circle Internet Group (CRCL) investor relations material

Industry trends and regulatory landscape

• Stablecoin adoption is accelerating globally, driven by improved infrastructure, legal certainty, and operational readiness over the past 18 months.

• Multiple jurisdictions, including the US, EU, Japan, UK, and others, have enacted or are enacting stablecoin regulations, providing a foundation for growth.

• The GENIUS Act, now federal law, is already influencing market behavior and regulatory guidance, with full implementation expected by 2027.

• Regulatory clarity, including the CLARITY Act and ongoing rulemaking by agencies like the CFTC, is seen as a major catalyst for further adoption and innovation.

• The global financial system is expected to undergo a multi-decade upgrade to internet-based, software-driven platforms, with blockchain networks as the core infrastructure.

Business strategy and growth

• The stablecoin network is the largest regulated network globally, handling nearly $10 trillion in Q3 on-chain transactions and growing circulation by 108% year-over-year.

• The business model leverages network effects, with widespread integration across tens of thousands of products and services, driving further adoption and developer engagement.

• Expansion efforts focus on global distribution, liquidity, and compliance with emerging regulations in key markets such as Brazil and others.

• The Arc blockchain, a new layer one network for regulated financial activity, is in beta with participation from major banks, payments companies, and fintechs.

• The company is building a full-stack approach, including a money movement payment network and application layer to facilitate international flows.

Technology and innovation

• Stablecoins offer capital efficiency, instant settlement, and reduced counterparty risk, making them attractive for cross-border payments and enterprise adoption.

• The CPN (Circle Payment Network) is designed as an open, modular payment network, enabling third-party app integration and programmable money features.

• Smart contracts are enabling new financial arrangements, with thousands of protocols already handling significant transaction volumes.

• Developer tools and platforms, such as Circle Wallets and the Smart Contracts Platform, support enterprise adoption and application development.

• The Arc blockchain provides a platform for deploying smart contract applications, with a focus on regulated financial use cases.