Coinbase Global (COIN) 2 May 242024 Q1 Earnings call transcript

Good afternoon. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coinbase First Quarter 2024 Earnings Call. [Operator Instructions] Anil Gupta, Vice President, Investor Relations.

You may begin your conference.

to First welcome Call. XXXX and afternoon, the Quarter Coinbase Earnings Good

and Legal me Brian had which and published Choi, CFO; are today's the today. COO; website earlier on Grewal, Co-Founder Haas, Joining our call was Emilie opportunity Armstrong, to on shareholder you've I Officer. hope and read CEO; Alesia our Paul all Relations Chief letter, President Investor

results make that may and you get materially that to during SEC forward-looking started, statements. differ we call, other these filings. we statements. Actual Before today's our to remind may vary uncertainties from included Information could I'd today's risks, in is results like concerning cause factors

GAAP letter measures should to Relations non-GAAP include not Our discussion financial Reconciliations also on website. today substitute provided Non-GAAP in considered financial certain as will GAAP in the measures a our financial for are directly Investor shareholder to to, addition references comparable be measures. the most measures.

using platform research analysts. we are live our will from the addition, We questions Say take in our again to shareholders ask And Technologies once some questions. to enable

With to opening Brian that, turn I'll it comments. over for

I our did strong of Anil. than progress on off kick was wanted EBITDA on provide generated last I continuing QX to shared we that innovate low our structure the Thanks, a more update paying QX year. adjusted We quarter. off. To while very a call. XXXX Keeping to cost really all is today's priorities call,

U.S. driving by derivatives key space, in our winning the As revenue. in doing in experience; core the a We're to through simple this they trading and investing stablecoins; international refresher, improvements growth markets. driving and are in growth abroad; both first,

crypto base utility to this solution doing with And election. importantly, courts, our crypto. We're rails. in Layer on this third, better in a through activating driving elect the voter upcoming through collaboration and X Base, most procrypto payments driving world policymakers through sensible we're clarity. the doing experience pass the we're regulatory rules Second, candidates and crypto building through around this low-cost to We're

Let's many capitalized through of we QX, start begin off. pay strong we investments saw and this with driving market last to revenue. conditions, downturn In our on

growth the Bitcoin continued or drove our driven nearly business product and to excitement customer part Coinbase all-time trading products in our around adoption with by new active X ETFs, highs and see volume institutional meaningful engaged clients in suite. clients which Prime reached QX. XX% of in Our more across

the year-to-date platform. position and In growth Exchange new increased cap across coin-based listings. our markets Coinbase early see their faster hold higher than Both stages. engagement market USDC competitors. Coinbase derivatives. who in shown balances to XX% financial QX, products. over added and International on promising We've Turning both Exchange increased XX also International have future major We growing customers USDC is from limits perpetual

So growing we've unifying competitive been platforms rewards. books balances offering those trading order advanced investing and by in on

And paid subscription while seeing Coinbase QX. surpassed we're great XXX,XXX consumer with days, One, our in also still product, traction subscribers it's early which

our Layer spotlight solution on Next, X to let's Utility. to move Base. like I'd

As solutions new many from will the cases similar blockchain reminder, to the a dial-up use when scale, in And scaling drive believe Layer help crypto to X this we Internet broadband. economy. move

last our than fees XX about than Layer a number with XX% to as now and anywhere the reduction We've and transactions average X. of transaction times, reduce now Base the fee cheaper fees closer X by less transaction $X.XX In cost Xx often use second the having dramatically entire over processed to is crypto as us on processed, activity increased Ethereum helped eightfold has transactions below X faster our upgrades of $X.XX. in made #X world. Base are days, in has many Developer less goal the Base and accomplishment. confirmation QX. by on and Layer Base huge network Base through getting take the protocol solution

instant Coinbase each also USDC really, in and global big paid payments is We're creating free the to billions Base This update reducing now financial deal system a direct by payment a global nearly of integrating USD-denominated asset. on really across have year. as the products, we sight by fees consumers line in businesses

and clear regulatory discuss advancing candidates contributing to in to and driving major world Coinbase for let's Finally, around year. election rules heavily this procrypto continues during crypto, invest the we're regulations clarity. actively

the in We're a in had large Fairshake Texas a primaries [ to Alabama. contributor procrypto great ] already and organizations California, Super impact which March PAC, like

raised We our organizations to advocacy clarity also also November. want Crypto.org, over With crypto Stand now continue steady to their XXX,XXX elect who hand progress in litigation advocates in they grassroots We're getting candidates like courts procrypto through work indicating the making which in SEC. the has with with

claim of SEC's is drive element was In freedom. XXXX Wallet, phase the provided to product The this intensive our year year and proceeding growth, denied self-custodial across and court arguments. the the at prepared fully up dismiss, fulfilling discovery which an be increasing meaning industry rest legal is industry. on-chain mission. to developers on confident for motion discovery, mission an of we our the through stage win is of growth strength significant we're for case regarding shaping of QX, important remainder early our for the our to This to rest to the our win motion which for our very but remain ruled an for the the to in a continue clarity dismissing wallets and Coinbase court important the us economic our of believe

provide it into who to Now financials. I'll detailed our pass insights over will Alesia,

afternoon, I'm everyone. Today, to cover Brian, and good topics. Thanks, X going

in QX I'll our a of our and an QX on First, comments transaction on accounting financial second, change; review third, the touch outlook. key performance;

find on in our of You XX-Q. and shareholder details more our can all topics these letter

XX% adjusted was income billion. $X to grew total performance. Let's $X.X revenue billion. billion net $X.X QX generated quarter-over-quarter start EBITDA with and We QX in financial

Brian USD if equally, said, a grew all more $X.X not we our $XXX generated than more liquidity in importantly, We and assets strong billion including ended resources to of position, customer QX billion. safeguarded XXXX. As with in

proud over our cap are on product store to our operational on We and execution strong crypto total These market expansion, focused discipline platform. market reflect ongoing XX% safely our results conditions. crypto of

in crypto Transaction Looking to at increased grew $X.X XXX% transaction higher by This prices, both quarter-over-quarter driven revenue. as revenue crypto which well asset volatility sharply is asset March. billion. as

acquired consumer both as and as side, engagement prior XXXX higher and growth. the strong flat quarter-over-quarter. well was user trading our fee roughly in new users resulting being saw in growth simple On average advance, consumer We blended volume across from

Coinbase prime market institutional trading in gained trading highs trading also in their first all-time Brian in opening the saw based We shared both share on quarter. spot consumer his platforms. the comments that and earlier

sequencer want revenue. transaction I from previously other revenue, of to Base broke that out consists share in first and revenue. quarter, which consumer were These revenue the revenues payment-related fees we transaction in included

utility is with goal insight new this provide to Our and helps investors revenue experiment payments, into drive transparency and [indiscernible]. that

and was a services revenue out to asset higher XX $XXX March grew crypto subscription by that driver growth. I'd native was This XX% to was growth. XX and December growth blockchain of the driven call rewards million. Our to Ethereum prices price and quarter-over-quarter when key like unit higher of revenue comparing XX% the

prime in both close reclassified market grew finance did the we which unit also QX, see income, custody to into and I'd financing XX% native we this revenue. services to billion. over note at other fee and staking. USDC we recorded cap like to that inflows On renamed previously and and interest QX to line, income in front, $XX interest subscription was fees

side, quarter-over-quarter last the compensation. expense On the we All increase total driver of X% expenses million. sequentially as to was expense higher And on shared right. primary increased our call, $XXX stock-based

topic. to are items Second note There X today.

net This that repay opportunistic to first issued the a from added outstanding raised billion to plan at our to that note. balance. use cash an on raise and prices. We convertible or raise we depending in in market $X.X One, debt maturity proceeds our was quarter, capital to proceeds prior capital

We change. XXXX-XX. accounting adopted early standard Second notable update, accounting

we accounted that cost As these a our we now fair on compared value for as that all assets for platform at less impairments. to assets we where account result, crypto hold historically,

asset were December higher crypto of and XX, on had unrealized was this recorded quarter March realized pretax XX we since assets not The million compared to as $XXX prices at crypto i.e., this in we QX, end, asset majority In mark-to-market the gain. sold gains.

You can statement X in items. financial that see line new

operations second, below $XXX pertains pertains and net million crypto our in First, which the gains long-term held to portfolio. and held investment operations; to which for and expense, in operating investments, gains our million assets on crypto net held recorded assets $XX used in for is line on crypto

that $XXX stay to seen assumes the to consider services April have that million. to revenue on asset operations. This was in $XXX losses million or subscription crypto we gains adjusted our be to $XXX part back in We day-to-day we of the transaction to touch and and not revenue outlook. will be in assets as like we anticipate range do I'd million, adding the investments the over letter shared year-to-date of crypto on prices be We EBITDA those range our Last, XXXX.

expenses, by to expect expenses primarily support increase increase million. and administrative $XXX trading higher volumes. certain million On development to expenses to technology related customer the and we driven and expense sequentially side, This $XXX general to is infrastructure and variable notably higher

I on volumes. to takes meet customer the want higher growth outlook. us to growth point I'll trading on the resources as the revenue and volume support side, note ramp up it lag typically that out item expenses Last to time

USDC investing primary to expense incremental marketing increase with We nearly to to ended on double to $XXX QX. additional in reward payouts And will on growth due compared The USDC platform, QX this platform driver are growth. rewards therefore, expect We on $XXX balance. USDC QX balances in to million ending fees is billion sales these and our $X.X the in in increase and million.

broader our to are our the We pleased platform of USDC adoption services. programs this and incentive and products driving growth see in

for With to back Anil, you that, questions.

Thanks.

questions to by turn the the let's of most We're number taking So shareholder up-voted determined questions. shares. as

is the Base to first profitable drive And value this question Alesia? network how shareholders? has been? Our how will

Thanks.

sequencer days, however, that driving unit . pI the that has Brian focus is economics. adoption, by we And line of revenues. growth out to that we saw and early driven Base As his developer have mentioned a we're those Base. I traction Quarter-over-quarter driving combination shared revenue, activity, really was sequencer point transaction payment-related comments, new growing earlier. strong the It's primary on our really want seeing just in we in earlier it's primarily fees other growth on encouraging noted Base and some fees. that item called a in QX, Base transactions revenue

we on, become focused volume, as we transaction long key to and contributor over revenue growth which material metric are that our grow Base profits the believe can So is we the term. a

you revenue So our the analysis question impact an Emilie? the is, second from net done spot ETFs? have determine to

Sure.

a the revenue is As XX% as for Brian both X growth product We of million our revenue we more or inflows the fee XX% [ engagement clear quarter-over-quarter under custody our our in This clients in suite, Coinbase supported The direct unlocked issuers. mentioned, the as of flywheel billion growth custodial financials. ]. $XXX in across and XX% were assets ETFs to impacts direct customer of We to engage products with as prime X institutional XX $XX well excited impact ETFs. quarter-over-quarter indirect to native of see unit saw and saw of from our in custodian QX.

saw Finance revenue, income quarter-over-quarter. Prime which strong contributed XX% to growth fee and interest in up finance also We being

reaching pOn of broad-based prime Coinbase active in advanced we growth in to highs across indirect saw basis, in number all-time trading an and the We saw in board elevated volume trading clients, QX. market. that activity and consumer volume entire we're that said out up quarter-over-quarter, ETFs the benefit the thrilled spot on XX% the with would simple U.S. play see to trading ecosystem, our outperforming platform. and consumer long We've addition

Brian? products. to we'll the Say plan offer like other does or term take right. from is, the All products Coinbase final And in banking any near insurance question

Yes.

be So the crypto we to crypto plenty things like used a global can how banking We space and moment. system on tend planning space, ratio. build And things anything rails crypto in faster, cheaper, feel at global. the the to or financial we're not make do update have XXX% in in more to and insurance to to want reserve we have the focus really

to to wanted like a you if license banking that, something a need only we do You'd fractional or moment. of do have the which don't any kind at reserve plans

retail go in, on a there you live, believe of [ also kind not everybody, let's international we looking of crypto got we're We're will them can including imagine really We're these also that of build ] once economy these announce try on kinds on coming they're we online, actually There's preannounce vaporware, lot of and things. enabling calls. can And how to more But always We've whole let's calls. platform. there. to if announced kind anything is at to point. services provide that doing not I this things at a be Base on-chain expansion. build. opportunities for insto our lot a developer And of all with if

within So good from ideas Coinbase. anywhere can come

Even products today. you pitch some us on to be turned come that out of live those up. We've are the had and bottoms groups have ideas that see

over products suspect continue a So that we innovative of create will do to I and time. lot

questions analysts, Sarah, with Well live from Great. right. let's the take switch and please. All that,

line Your with from first the Devin Citizen's comes JMP. Ryan of question

Great.

just both appreciate this is rollout step think, the believe quarter, think going and USDC we linear. of, First not which Base And there function it adoption. on are of I wallets Base. growth question, on smart to on But catalyst pretty I and about here later for would be X a growth seem as the follow-up now, represent also that it testnet a material activity the I

just So particularly integration the get as just step X? based Web about expectations interest deeper wallets to taking thinking with kind you're a of on around maybe seeing love connectivity with you're I'd into there smart and your

Yes, can that. I take sure.

so the that's we've one exciting product really innovative Coinbase thinking about what been calling caveat for big of always days, have has it's on. these working everything here. the a and don't how We out And to And use. really a that easier challenge exactly early we crypto-wallet we're do the smart thing to wallet, at say we been to be. But past. onboarding thanks we kind very So in will tools impact been make know is

a You phrase, of save sometimes spot kind chrome a there's have or in to safe to some have you and XX-word extension. use it

are technical how do the onboarding about get X size And do can Those probably an so -- of audience. billion that how experiences always a kind technology. benefit this of we people, little they too we for think from to bit

interesting pass with So which technology right. Smart creation keys, been this of we've utilizing is its Wallet, the in the kind own of an

different and biometric economy if onboard kind a push You is less in various faster, of of allowing may us more have they're seen it kinds you've your This apps. in people fingerprint done funds. to and scenarios way secure simpler lose a actually where to into crypto likely the much

developer applications have better in we to people. preview of I mentioned an the more only that's all X to leads think, can to we going it It's got and developer And a Base If that dial-up build that back out . broadband. testnet. really get right And on a thing more basically like eventually get applications, exciting So kind incredible that's to to interest getting now. goes from we moving tools, built. developer analogy We've billion because how I Internet is, where be we'll it.

Okay. Terrific color.

a follow-up, also generation big resources billion billion. guys business. I Just as the USDC in benefited mentioned, you in you a to cash but from from step-up obviously, the $X.X know strong convert, $X

on you're growth seeing right grow the need all So businesses you're that of if the the their to level that about and think capital ones don't. and just support versus in areas that we focusing areas now

does capital or capital what love think just for just the more capacity like there well. capital needs, would I kind things kind update about you of leave mean return with, guess, I do And how potentially of business an now? of I building aggressive other even where to just thinking M&A you it's that to are the as shareholders,

this take I'll one.

So majority which was owned We is in of with amount financing loans, plowing just business. our the came fair we assets our the capital balance whether USDC. prime are million from a fiat, ended them sheet, on into $XXX over that of quarter

a a lot new that footnote portfolio. lending of We have around detail that discloses

lot that marketplace bridging grow institutional I lending. develop liquidity. as using using today, for we product say is wouldn't our and business we that capital X-sided are it's So that but a of the

or also around of say, world. expansion We sheet up have we significant support for a very in new legal I But capital use capital, international balance them. we we either economics form CapEx licensed set entities we as products, overall, business to where unit would the positive capital-efficient require in our have don't the and

bootstrapping our these can And to to front. we're so I'll a be to at we share over opportunistic pursue as what for sheet looking bridge So Emilie balance as of that pass capital that products is the well lot M&A. intended on

at activities. always of Sure. Well, partner, invest build, we a look spectrum buy,

probably so interesting of for example, really we product see venture, are that the is that And something Coinbase, the for would we'll portfolio. out incredibly sometimes future further the we're of bolster be kind that. to opportunities going for done we build have suited M&A to buy have with that us, important well to very road we product And on historically whereas if or map well think

launched Xapo, us of well Tagomi You example, organically. have to that international we in very exchange. things got happen helps build We've our product think be platform. and Singapore, shipping can we now, . Right like institutional Canada, the -- for Brazil, we

all little Asset That's so our We XXXX. And we're bit more Coinbase time. opportunities ventures in leaning arm, ORDAM the but a into we're now M&A closed watching Management.

the use strong to We EU. in markets. that for see continue where announced going we're are XX-plus growth EU acquiring QX, . should we balance high-quality We in derivatives And opportunities. unlock to drive that license MiFID the to a just sheet

the question Ken Your Worthington with from of comes JPMorgan. line next

of [ amazing your high right the thinking that's about up ] but you quickly the revenue a these in expenses is total level revenue can't a future level leverage. you XQ as on longer profitability. and good acknowledging there growth might up cryptocurrency in balancing a time very How 'XX XQ suggests turn some the operating feel as context environment, 'XX and margin but cryptocurrency total higher a investment what costs, X XQ over is better conditions, guidance So of XX%. that around. frame, turn for still they And are of of of off investments range logical profitability. need sort right move Is current sort

for your question. Thanks, Ken,

note our positive is adjusted focus important positive think And to conditions. So I that generate goal overarching it's all EBITDA on to market EBITDA. is our in adjusted

grew You we saw XX% conditions, learning when in in performance and the adjusted XXXX, that the focus see the in here those the margins range. learned Obviously, were the deliver is on from that lessons the we see that we EBITDA were today to too able . But cryptomarket in quickly. strong XX%. XXXX we QX you past

XXXX, we as So going look we investments. making at to be are

performance of other that some prices we're volatility. USDC prudent to early year-to-date support seeing, and products We traction are with in the correlated to example, and and seen planning modest of especially be that Base these in not and the some for market we've as strong crypto are

For for the spend. from coming outlook increase, of is variable the the QX, majority though, we provided

[ As CX support volume. we typically compliance I noted operations and in see my trading ] lag comments, customer

infra-related scaling with And expenses meet infra then And the demand. are saw that some spike hitting QX. have spend March, we also our really so we associated in in the to

be to prudent. So we are going

modest conditions bottom growth see in we but headcount the line. marketing to in expect strong deliver able plan to to some be to QX, We

with Barclays. of comes the question Budish Benjamin next Your line from

a questions. of Maybe model-related of just couple sort

and could key fees, payment What about related the about side, think are little payment we a exactly? them? are the the should more you on talk How what modeling drivers? those the sequencer First, revenues bit on

It that so payments related. venture-type and of it's the for broad that are the on in portfolio everything related. sure. platform we more products have includes withdrawal debit a instant the category fees, fees is fees, commerce that payments card some

related streams the So of the been I named. as contributor but I are that these time, at revenue the payment this earlier, would say has the mentioned ones quarter-over-quarter, and growth that Base, I largest that to biggest is

Helpful. talk you've just think, where Can you it. Got client with that you about, it -- XX% the institutional And seeing I engagement got X-plus about on sort of products. is engagement, of then stuff a they a who client Prime is? strong And talked and seeing bit? add particularly unpack products? Can particular and traction and ETFs. Any that you with in types where with started trading doing maybe little of borrowing you're they're institutions

Sure, happy to.

zoom to full brokerage built last Prime our And I like important really the limited was it's few the sleep. look so over suite XXXX Prime financing out offers trading in and offering platform. custody, product. where to of kind think really institutional custody So bull the we've at a suite run, It to offers the the now. last Prime years, back

staking. We have

so staking, adoption then in business And to . I seeing that on whether growth client, depending to say tends seeing type trading but custody customers engage led of quarter. product mix see need or good on you spectrum. we're whether And those, which across in you of that they saw go they're has we're of the would hand-in-hand. be type financing the each a clients, across the depending the

question Your Oppenheimer. line with the Owen of from next Lau comes

major Network payment? from encouraging traction on And and more Lightning color your them? the is for use Lightning Could network? what strategy more the please are What on you add to pushback merchants

Yes, I that can take one.

of as of should in Bitcoin all is opening one I transactions largest out goals is the mentioned cost So in down payments crypto, say. our times the remarks, in I network all crypto, and the to confirmation the there. really drive And

Coinbase. on a big on we effort Lightning partnership went by the so in Light the with Lightning that to And Spark, way, enable was Network

over Lightning also Layer down transaction instance the less on block a essentially it They became network actually and the from on X.X% the X than fees, the XX-minute roughly lowered versus This time about Bitcoin fees. times XX%. decreased by confirmation previous

then about chains do the on a we getting make X Lightning major Layer toward of sub-X-second second that $X.XX. sort our default our system, at which like in to do ]. we crypto, the If across crypto of that apps and that or it a So Network more least how within and we the step efficient this products, products, can us fulfill to was [ I of start huge how transaction global? think average happening all that global allows make do excitement fair is and it is will long-term get to goals My really and financial update under and the that some $X.XX

of WhatsApp And of really fees, a time is lot data, you card, sending kind I which a are It's payment credit a bits swipe shocking burden those just for the losing kind it mean, every still is reduce free. moving of mind consumers that of and businesses. like my message, merchant your which boggles really X%.

so why transaction X% that does still tax economy. in on And the as exist every there's a

that we've out get think more in seen reduce I friction, as you and there other you technologies activity. more

people things, I to fees lower paying. that all growth so of think And it and kinds economic just are could lead

a partner. having launched using. were So about anyway, spark. the that great are with Lightning excited hopefully, across the we integration chains that people major all do And we're Light They can

question Kyle the of from with line Your next KBW. comes Voigt

ecosystem share going more time. not what's I'm pricing the fee ETF expected some because on term than quarters and should the of in that rate the just fee institutional institutional increased just broadly, institutional given institutional across and the came strong growing we the the medium And X that? in market to trading. just competitive whether power pricing the U.S. crypto over you side about capture guess positioning side, so I to has the business Maybe the on in despite also broadly, that trading better then that? over business, significantly And just been driving increase business has or maybe think custody last volumes on wondering the back more

Kyle. Thanks,

So I underneath that revenue. and the just the of institutional remind X you there's hood transaction fee to start want products

are high trading the is exchange Coinbase most the have is our low higher Prime, Coinbase on enables through on very volume makers on And has first participating our is which market clients Prime directly very due the brokerage levels. achieve to where the that fee platform. in the Prime trading pricing second exchange. fees exchange than exchange, The tiered we the the the of where largely to been Fees

did go Coinbase So up, exchange. really that X Prime, my the and seeing we're quarters. previous engagement remarks when on both grow saw last volume Brian Prime Prime Coinbase fee you trading as mix fee we as drove the for in the see which all-time Coinbase on just clients. engagement well highs the what we as shift than active I And in is it's more of we in by that on driven number And that mentioned Prime, continued a with or It's growth Coinbase products. saw

Your Genuity. question Joseph the from next comes of line Vafi with Canaccord

trading wondering from Obviously, I a Nice users saw a quarter. strong the you more perhaps but have just results. how quick existing contributed And Maybe we metrics. I'm could to users, base just drill down into lot user some then of new sure much follow-up. the

were saw and from we XXXX new it growth, yes, existing volume saw We but trading that broken this We users, out, higher user. per we engaged that acquired we haven't prior users saw to also quarter. users,

or growth, -- the but of these have of we all and both really contributed X So to of metrics provided not these detail. that attributed level

Got it. trading perhaps in And that ton got of, quarter. secondly, the mean, bitcoin underlying I as press. mentioned guess, the in think And press attention maybe a ETFs I kind then was much I just not the of spot

a was perhaps kind feel of like a metric multiplier to you've obviously, in effect there where the there a you'd more Bitcoin if guiding kind got of Just if relative trading, have activity. is ETF it ETFs driving wondering was color other

I the of in attention. on want. energy mean, kinds take But it we're is when in you the creates interest that of I if across crypto all think there's it I ETFs can got lot industry. look, think a tension a what products seeing yes, general, and I

for So instance, volume in comments we and new all-time across in suite, we opening ETF our institutional drove our Bitcoin mentioned in adoption business. the excitement customer trading clients, and saw that product highs active around this actually

that think I it's boats lifts tide So all rising a

Securities. Your comes Pei line of U.S. Bo with next Tiger the from question

congrats I if X strong on questions, the results. have I may.

your classify mean Wells currencies recent that on less stop classified wants impact that Lab. other USDC security. on industry what make Coinbase by received Does So Ether as front. this regulatory you in users. security It that as Coinbase seems is is and potentially trading think impact securities. And Do accessible to to will classified staking second U.S. crypto also view and a service crypto Ether and had the to does the Uniswap U.S., notice trading the ultimately Ether U.S. a question If the how as for business. offering crypto

This is of happy those Paul address questions. to I'm Grewal. each

On and notice, Uniswap is laws reflective always whatsoever. transparently any the any very SEC this claims the merit why generally, consistent and that bring. respectful taking sharing and securities manner, that of been industry, I the in that Wells [indiscernible] publicly, but have the Uniswap clear think none them of to an their it's have emerging SEC made their view believe noteworthy not trend just that their more disagreements I wider market, responded why with in and companies think with ultimately always services certainly will but prevail are in they the action tone, a that constructive a public the may they with publicly, federal wider products do

particular made and filed. has the several if been security. As in a very of is you in past issue consensus bear years. done it for was the very SEC in is, lay statements presented somewhat manner the a recently not an declaratory judgment look action the confused that commission SEC case think positions transparent, constructive been that over The has I that the consensus that last productive, clear that at again, Eth What in has has issue

SEC. senior that only position to of said not fact, years officials was that prior In of the current the that at the chair appointment followed. in exact the The SEC thing his same

as The and always has fully process, but of been one we're out, not Coinbase of its ] willing way will are consensus get in for but court to Brian to in own to the we're supportive So certainly or core both other SEC unfortunately, the the processes their that these play Uniswap through course, has and emphasized, have view. provide going [ market for right. clarity confident

comes question Your with next of HCW. the line Colonnese Mike from

Really great quarter here.

USDC. So around is my question

And the recent So market quarters? quick seen saw consider thinking coming primary since drivers And that of you've start I What this the your legislators you rebound? you grown in letter mentioned a $X then by months. that, from billion supporting are cap how change growth as a in over has over the about the follow-up step you do shareholder the to year. that

can to be expect when things to potential So I U.S.? the legislation stablecoin what reasonably we for passed But would And see time. know these your the in are difficult impacts USDC.

to don't for part will take over second the first part. the and hand it Why you then Paul I

So we're really broader growth. pleased to see the USDC

on-platform growth platform the mentioned, in growth our USDC we in own quarter, the also where we overall and saw balance on our As doubled ecosystem. own nearly saw we

leading participants, to that been and I think recognition and of has trusted many largely transparent other efforts been market through by a broader ourselves participants. adoption, stablecoin there's is market that USDC highly

continue maybe to product. the it ecosystem we'll offer adopted on. incentives. can global an Paul, you and to And We'll continue make offer work with So comments

Sure.

there now and legislation important issue, paying this the is working Congress. the pleased to attention On that are way We're proposals of for front. are their legislation that a and through number encouraged Congress

could pushing think, important, it think sensible seeing the to We has Congress we're be stablecoins certain and ultimately complement improved, the that time. is I and the While will we've SEC regulation proposals, engage, pushing or X been for as fact is for Coinbase an elsewhere. been before thing. I for legislation important of think, that some

and to always priority, fact engage sort the U.S. to of be that attractive quickly stablecoins, for we that's -- move any other does it Congress seem ultimately and predict able muster do by can necessary in We're pass, continue we that this so support to market. when legislation important we an reserves legislation difficult regardless think it's for a order the to legislation make So proposed requirements the standards might around and to in Prime from how we'll be when is mere encouraged transparency, expect enacted see such standards legislation will to of enacted. to

of Todaro from Your & the Company. question Needham line John with next comes

outlook results here. revenue revenue, million the much guess transaction of spent I has you how so, base? One, if managing on for I the quarter the then $XXX guys on the Congrats about And other that X is I know through that? second, transaction include have about does April good here. here. talked management thinking time of lot And cycle a the a lot that.

cycle your thoughts kind or put thoughts where maybe in you the crypto just So around we on of any that? of are curious kind

$XXX out both answer which detail first transaction broken So The other. the Brian, time are the we it's you I'll And part. April includes and share shot yes, answer the haven't million with our this regards revenue, to institutional favorite you. is first consumer, at total is we in that? at where cycle, one to do take the want questions, of the to With

sure. Yes,

leave products just But from with out thoughts we've just a that there. and everything things I'll I tools to to few you mostly the share you and investors focus look, observed. can and So great predictions past want We on that. all cycles building like

crypto market about the volatility, is the XXXX levels. QX, XX% in is So up and still below cap though,

road market. of Bitcoin. happened. Ethereum introduced of like in So the mined other have We possibility for down we an a that's that Bitcoin ETFs supply being kind which things into there's of block in as had really Bitcoin, having Obviously, the the couple like ETFs things and the reduces the the in future. had Every a amount well,

what inflows, so but being of as much half generated day, you the then that can does. have you And if amount every imagine same supply

speculate people around and that those. anticipated people so And

look kind taken in way for havingS at peak is after cycles, But of [ historically, it's to an about past ] interesting XX what it Bitcoin havings. happens post XX months to And to

but who if it's will just that happen again, data So Yes. knows an interesting point.

So built And the applications and We of X think X different Payments, And blockchains. coming are is about getting that's the kind I be is Base that of -- piece only we but under think second just that all fees actually probably pipe next. $X.XX. not transaction interesting about. talked those those can down Layer it Global biggest things for the really on lots it's for interesting

a how cycles, started okay maybe the because higher which things and you often building NFTs, periodically are these going and fee of whatever. trade might you're things past transaction a people you like do purchase are DFI to do $XX that fee is or In for paying a kind and $XX, a or

we're For like happening with like daily, in is every and or that's confirmation a you're use like other and something by button to types or sort what social X. some hourly, more of come Layer applications, the game and a decentralized on-chain of case, network a upvote times minute if down, you that's to make seeing now the want have or cost of way

So think that's happen, but what's predict exactly to to hard pretty going really I it's exciting.

question with from more in X the It Christensen comes have queue. Pete the line We Citi. of

an and Question, is congrats today curious dynamic. that dual press the independently so before or not Coinbase? know, great Is potentially state-issued hit stablecoins that could I'm of on you that in around just some And of opportunity results curious see how banking week. Gary, kind as the your reports that, states playing [indiscernible] whether own part the system government. indicating point of can bill, for market. the are probably I'm their just you thoughts potentially here. at lucky stablecoins issue next federal

I'm happy to take that one.

an in in enacted to very role any state stablecoins state the and a be the role particular in that's an important that Whether the crypto ultimately important one. that we final supporting important have to supporting states seen. more stablecoin governments, crypto the around that institutions I do raising particular, chartered legislation in But of supporting you're remains think is ecosystem think pass to it's continue generally. comes point in

the think continue in any and hopeful interest we're passed, confident And recognized. well. that reasonably and consumer to serves system that be finally do dual investor will that's legislation We

All right. look all next does Thank to we forward you your for Well, quarter. it for you that and talking today. questions, to

This concludes call. today's

now You disconnect. may