Company: CRCL
Filing Date: 2025-05-27
Form Type: S-1/A
Source: 0001193125-25-126208
Chunk: 221

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-27
Form: S-1/A
Chunk 221
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 the potential to be some of the biggest clients of blockchain financial services, and by extension Circle. Some have integrated blockchain technologies to offer faster cross-border payments and reduced settlement times, while other banks have explored issuing stablecoins. Our focus on building stablecoin networks on public internet infrastructure and open blockchain networks differentiates us from these closed-network projects, allowing for greater reach, interoperability, and ongoing developer-ledinnovation of the Circle stablecoin network. Further, some countries and central banks are also exploring initiatives to create CBDCs. A CBDC is a digital form of a country’s fiat currency that is issued, regulated, and backed by its central bank. For example, China and Sweden have formally launched live pilot CBDC programs while others such as the United Kingdom have announced preliminary initiatives to explore the benefits of CBDCs. We are witnessing a rapidly growing trend in asset tokenization. The ability to convert real-world assets into digital assets on a blockchain has presented new challenges for competition beyond the scope of stablecoins. 153

For example, major asset management firms such as BlackRock and WisdomTree are launching their own TMMFs for a range of financial services use cases. Traders are becoming more receptive to this
move, as it allows them to earn yield while using these tokens as collateral.

As a result of our developer-oriented platform and network infrastructure, we may in
the future compete and/or partner with more traditional financial and technology firms. Evident by our growing partnerships with companies such as Visa, Stripe, MoneyGram, and Grab, we envision a complex ecosystem that will accommodate multiple
segments of players, including companies aiming to integrate stablecoins and blockchain networks into their products.

Collaboration with Coinbase

In 2018, we established the Centre Consortium as a joint venture with Coinbase to provide independent governance over various aspects of USDC (such as reserve backing)
and to own various elements of stablecoin-related intellectual property with the goal of having multiple parties issue USDC and other stablecoins. The Centre Consortium was owned 50% by us and 50% by Coinbase and was managed by a board of managers
composed of three individuals, each holding one vote with respect to matters to be decided by the board of managers: one manager designated by us, one manager designated by Coinbase, and one independent manager mutually agreed to between us and
Coinbase. The board of managers had broad authority in managing the Centre Consortium’s business and the governing framework for stablecoins under the consortium. Certain matters at the Centre Consortium were reserved for