Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 207

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 207
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 value, of the Circle stablecoin network. However, as our network grows, we expect to build new fee-based revenue 
 streams. These may include fees that monetize the movement of money across our network (driven by the velocity of money) and include subscription fees for our various Web3 Services.                        |

Competitive landscape We operate in a large and evolving market. Although our competitive landscape can evolve given the category-defining nature of our platform, our main competition today primarily consists of private issuers of other stablecoins as well as technology startups providing tools and services to blockchain developers. We are also facing increasing competition from newly emerged yield-bearing digital assets, including TMMFs. Within the competitive landscape for stablecoins, we compete primarily with two key competitor categories:

| • |     | Offshore, unregulated stablecoin issuers that operate without supervision or compliance with the requirements of being a 
 federal- or state-licensed provider of money services; and                                                               |

139

CONFIDENTIAL TREATMENT REQUESTED BY CIRCLE INTERNET GROUP, INC. PURSUANT TO 17 C.F.R. § 200.83

| • |     | Other primarily U.S.-based regulated digital asset industry participants who are issuing U.S. dollar-based stablecoins. |

USDC is the second largest stablecoin and the largest regulated payment stablecoin as measured by the amount of stablecoins in circulation with a 24% share of the stablecoin market as of December 31, 2024, according to CoinMarketCap. Relative to certain other stablecoins, USDC is 100% backed by fiat-denominated reserves and has robust primary liquidity through a well-developed network of banks, representing what we view as the highest levels of transparency, safety, and operational resiliency in our industry. The largest U.S. dollar-denominated stablecoin as measured by the amount of stablecoins in circulation is USDT (issued by Tether, an affiliate of Hong Kong-based crypto exchange Bitfinex Ltd.), according to CoinMarketCap. USDT remains popular in many markets but has struggled to gain traction with regulated financial institutions and mainstream market participants, has been the subject of many government inquiries, has been associated with use in illicit finance, terrorist financing, and sanctions evasion, and has had ongoing controversies over its reserve asset management practices. Other competitive stablecoins include white-labeled stablecoins issued and operated by Paxos, including PayPal USD, a stablecoin that is integrated into PayPal wallet products, which has experienced limited distribution and adoption to