Company: CRCL
Filing Date: 2025-05-16
Form Type: S-1/A
Source: 0001193125-25-121234
Chunk: 363

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-16
Form: S-1/A
Chunk 363
---
 of the respective digital asset during the
period. Company owned digital assets and digital assets held as collateral were reflected within DigitalAssets on theConsolidated Balance Sheets. Impairment losses are reflected within Digital assets (gains) losses and impairment in the Consolidated Statements of Operations.

Digital Assets related to Lending Services

The Company enters into Circle stablecoin lending arrangements. Loan fee income earned from lending activities are calculated using the effective interest method and are
included in Other revenue, in the Consolidated Statements of Operations. In connection with Circle stablecoins lent to its borrowers, the Company recognizes Stablecoins receivable, net on the Consolidated Balance Sheets.
Stablecoins receivable are recorded at amortized cost, net of any allowance for credit losses, if applicable. An impairment is recognized if it is probable that the Company will be unable to collect all amounts due according to the contractual terms
of the agreement.

In connection with certain lending, the Company may receive Bitcoin as collateral into its custody account, which is included in Digital assetson the Consolidated Balance Sheets. Refer to Digital Assets above andDerivative Contracts, including Embedded Derivatives below for further information.

Deposits from Stablecoin Holders

Funds received from customers from
the issuance of Circle stablecoins represent claims which are reflected as a liability classified as Deposits from stablecoin holderson the Consolidated Balance Sheets. As a licensed money transmitter and regulated Electronic Money
Institution, Circle is obligated to redeem all Circle stablecoins presented by Circle Mint customers on a one for one basis for U.S. dollars or euros, as applicable, except in limited circumstances, such as when prohibited by law or court order or
instances where fraud is suspected. As such, the Company does not have an unconditional right to deny Circle stablecoin redemption requests from Circle Mint customers. With the exception of general stablecoin holders subject to specific regulatory
requirements such as those in the European Union, the Company does not redeem Circle stablecoins from stablecoin holders who are not Circle Mint customers. However, Circle stablecoins are supported by numerous global digital asset exchanges and
marketplaces, including neo-banks, brokerages, payment providers, remittance providers, superapps and commerce companies, and as such, Circle stablecoin holders could transact with Circle Mint customers, ultimately allowing the Circle stablecoins to
be redeemed. Deposits from stablecoin holders do not include amounts associated with corporate-held stablecoins. Cash associated with such corporate-held stablecoins are presented as Cash and cash equivalents segregated for corporate-held