Company: CRCL
Filing Date: 2025-08-04
Form Type: DRS
Source: 0000950123-25-006942
Chunk: 218

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-04
Form: DRS
Chunk 218
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 and from Circle Mint customers to enable on- and off-ramping with Circle stablecoins. They provide multiple rails including 24/7/365 funds flow capabilities, wires, ACH, SEPA, and similar
regional domestic bank transfer networks as well as providing redundancy across rails. We continue to expand the network of banks that provide primary liquidity services to the Circle stablecoin ecosystem.

Reserve management standard

Our reserve management
standard complies with applicable regulatory requirements and supervisory guidance for stablecoin reserves. Under the New York State Department of Financial Services (“NYDFS”) guidelines regarding the issuance of stablecoins by holders of
a New York virtual currency license (a “BitLicense”), stablecoin reserves must be limited to specified assets, which include U.S. Treasury bills with maturities of three months or less, reverse repurchase agreements fully collateralized by
U.S. Treasury obligations, government money market funds, deposit accounts at U.S. state or federally chartered depository institutions and other assets acceptable to NYDFS. Under MiCAR, as an issuer of e-money tokens, among other things, we must
keep at least 30% of the reserves backing stablecoins issued by Circle Internet Financial Europe SAS in separate accounts in credit institutions and the remaining portions must only be invested in highly liquid financial instruments with minimal
market risk, credit risk, and concentration risk such as cash, assets representing claims on or guaranteed by central banks, central or regional governments, local authorities or public sector entities of the United States or an EU member state,
assets issued by eligible credit institutions, and exposures in the form of extremely high quality covered bonds that comply with MiCAR’s size, transparency, and liquidity requirements. See “—Regulatory policy landscape” for a
discussion of the NYDFS guidelines and MiCAR requirements.

In compliance with these regulatory requirements and supervisory guidance, our reserve
management standard limits the types of assets that may be included in USDC reserves to (i) U.S. Treasury securities (i.e., U.S. Treasury bills, U.S. Treasury notes, U.S. bonds) with remaining maturities of three months or less, (ii) cash
deposits at global banks, (iii) tri-party reverse repurchase agreements on an overnight basis fully collateralized by U.S. Treasury securities, in which the collateral is market-priced greater than the allocated cash amount at the time of
purchase and custodied with a third-party custodian with a minimum credit rating of A, A2, or equivalent