Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 131

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 131
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 to continue to enter strategic partnerships like these to expand our product offerings and amplify the network effect inherent in our business. We believe each of these partnerships helps to foster broader access to Circle stablecoins and the internet financial system. 86

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

These partnerships enable awareness and access of the Circle stablecoin network by new
end-users who may otherwise not directly be reached, while benefiting existing end-users by expanding the opportunities for internet-based commerce. We expect these partnerships will drive greater circulation,
adoption, and use of Circle stablecoins.

Growth in new products and services

We believe we have a sizable opportunity to grow our business through the introduction of new products and services. Our blockchain infrastructure and Web3 Services
provide platforms upon which third-party software developers can build and create their own products and financial applications. For example, we launched our CCTP offering in early 2023 and have already seen its significant growth: It is live on
eight blockchains (Arbitrum, Avalanche, Base, Ethereum, Noble, OP Mainnet, Polygon PoS, and Solana) enabling 75 routes and, as of December 31, 2024, has handled approximately $24.7 billion in transfers. We calculate CCTP volume by analyzing data
from all blockchains on which CCTP is deployed to match receiving USDC transaction data on destination blockchains with USDC redemption data from source blockchains, and then summing up the USDC redemption volumes on the source blockchains. In early
2025, we launched CCTP V2, a fast version of CCTP that is expected to monetize and accrue revenue on each transaction. CCTP V2 is coming to Avalanche, Base, and Ethereum in early 2025, with more blockchains expected to be announced throughout 2025.
We continue to develop our blockchain infrastructure and Web3 Services, facilitating the development of new third-party products for the internet financial system, which we expect will in turn increase demand for Circle stablecoins and serve as a
critical driver to the growth of our network. We anticipate that the products developed on our platform will drive new sources of revenue, including network service fees and additional Web3 Services fees.

Interest rate fluctuations

We derive the majority of our revenue
from reserve income. Fluctuations in interest rates impact reserve return rates, such that a decrease in interest rates reduces reserve return