Q2 2025 Coinbase Global Inc Post-Earnings Q&A Call

August 1, 2025

[music].

Yeah.

From Stephens.

Okay.

Please proceed.

[music].

They are not playing by the rules they don't get they don't understand.

They are not playing by the rules.

It's clear the rules are very clear.

Not playing by the rules.

Thank you for your interest.

That doesn't mean you have to live with that now it's time to build a system that works for us.

Is that too much to ask for loans added Dreamer.

Mcnee Digital's, let me saw.

Okay.

This is the future of the Internet.

This is not an engineered by creators for creators that rewards the creators who can create the creative reagents, we'd love them right here work stream history. He made a big point is up to a $100000.

We deserve a better system easier simpler faster.

That's all crypto works.

Just a simple transfer.

Secure like a digital handshake.

To update the system.

We show you exactly.

Hello Happy August Happy post earnings we are delighted to be here with you all today. So hello, everyone. Thanks for joining us live on that.

I'm always hot Chief financial Officer of clean base, and I'm here with our co founder and CEO, Brian Armstrong.

As always we are so excited to connect with you our customers our community our shareholders to talk about this past quarter Q2, 2025 and answer questions.

There's a lot of conversation and we'll be covering pre submitted and taking questions in real time.

We won't be answering questions on when will list a token any specific customers of our cases and regulatory questions that we covered in depth on earnings date.

Or personal questions. We're just gonna skip that alright, before we get started I have to remind you that we may make comments on risks forward looking statements, which may vary.

Materially from actual results information concerning our risks uncertainties and other factors that could cause. These results to differ is included in our SEC filings with that it's time to kick things off and here is our first question for Brian.

Rachel on Ciena what.

What role do base and the base App play and claim basis Q2 performance and our long term vision.

Alesia Haas: And their long-term vision.

Envision.

Yes. Thanks for the question great to be with you all live here gets more questions answered. So base is really innovative change that we created.

Brian Armstrong: Yeah. Well, thanks for the question. Great to be with you all live here. Get some more questions answered. So, you know, Base is a really innovative chain that we created, built on top of Ethereum, that helps at scale. And we just recently launched the Base app. Now, these two things, they're not major in a major contributor to our core metrics in Q2, but they are making incredible progress. And so, just to give you a couple of stats, the Base chain, you know, it saw stablecoin volume consistently topping $4 billion a month, which is great. On-chain assets on Base grew over 20%. They reached more than $12 billion. We're progressively decentralizing Base. We want it really to be open to everyone. So, it reached what we call stage one decentralization. It was at stage zero previously. We'll get to stage two eventually.

Yes. Thanks for the question great to be with you all live here gets more questions answered so.

This is really innovative change that we created some.

And that helps us scale and we just recently launched <unk> App now these two things they're not meet in a major contributors to our core metrics in Q2.

Cerium that helps at scale and we just recently launched the base App now these two things they're not meet and are major contributors to our core metrics in Q2, but they are making incredible progress.

They are making incredible progress and so just to give you a couple of stats.

So just to give you a couple of stats.

Based chain.

<unk> chain saw stable wind volume consistently topping $4 billion, a month, which is great.

Stable wind volume consistently topping $4 billion.

Which is great.

Onshore assets base grew over 20% to reach more than 12 billion. We are progressively decentralizing base, we want really to be open to everyone. So.

<unk> assets on base grew over 20% that reached more than $12 billion. We're progressively decentralising base, we want really to be open to everyone. So it reached what we call stage one decentralization state zero previously will get to stage. Two eventually and then we actually launched the based App because we want to make sure that the chain is usable in people who are building.

At least what we call phase one decentralization.

[Company Representative 1] (Coinbase): They are not playing by the rules. They don't get it. They don't understand it. It's clear. The rules are very clear. They are not playing by the rules.

[Video Narrator 1]: They are not playing by the rules. They don't get it. They don't understand it. It's clear. The rules are very clear. They are not playing by the rules.

Zero previously.

Eventually.

And then we actually launched the based App, because we want to make sure that the chain is usable in people who are building on top of it and get distribution.

Brian Armstrong: And then we actually launched the Base app because we want to make sure that the chain is usable and people who are building on top of it can get distribution. And as I mentioned in the earnings call, we now have over 700,000 people on that waitlist. I've been using the beta app quite a bit, and it's amazing. You post content, you earn money from doing that. Content creators, whether they're on X or they're musicians or they have a podcast, like they can have a direct relationship with their audience and monetize it. And it integrates. It's not just a decentralized social app. It's integrating all these decentralized protocols to come together: decentralized identity, messaging, third-party apps, and of course, a self-custodial wallet with decentralized social media.

Can get distribution and as I mentioned in the earnings call. We now have over 700000 people and that weakness I've been using the beta up quite a bit and its amazing you Hope you post content you earn money from doing that.

And as I mentioned in the earnings call. We now have over 700000 people now I've been using the beta up quite a bit.

Alesia Haas: It's because you're born into a system.

[Video Narrator 2]: It's because you're born into a system. It doesn't mean you have to live with it.

[Company Representative 2] (Coinbase): It doesn't mean you have to live with it.

[Company Representative 3] (Coinbase): Now it's time to build a system that works for us.

[Video Narrator 1]: Now it's time to build a system that works for us.

It's amazing.

[Company Representative 4] (Coinbase): Is that too much to ask for an old, top-headed dreamer?

Is that too much to ask for an old, top-headed dreamer?

Most content you earn the money from doing that.

Content creators, whether theyre on X or their musicians or there have podcasts like youre going to have a direct relationship their audience and monetize and it integrates nauseous associated centralize social app integrating all of these decentralized protocols to come together incentivize identity messaging third party apps and of course the cell.

[Company Representative 5] (Coinbase): Let me digital. Let me score.

[Video Narrator 3]: Let me digital. Let me score.

Content creators, whether they're on X or their musicians or there have podcasts like they can have a direct relationship with their audience and monetize it and it integrates its not just associated centralize social apps integrating all of these new centralized protocols come together you centralize identity messaging third party apps and of course.

[Company Representative 6] (Coinbase): This is the future of the internet. This is on chain.

[Video Narrator 1]: This is the future of the internet. This is on chain.

[Company Representative 7] (Coinbase): An internet by creators for creators that rewards the creators who create the creative creations we love.

[Video Narrator 2]: An internet by creators for creators that rewards the creators who create the creative creations we love.

[Company Representative 6] (Coinbase): I'm right here watching history be made. Bitcoin is up to $100,000.

[Video Narrator 1]: I'm right here watching history be made. Bitcoin is up to $100,000.

Custodial wallet.

Custodial wallet with decentralized social media. So it's kind of this very ambitious idea around how can we make it a super app on crypto was always decentralized protocols totally reinvent the way that social media business models are done.

Decentralized social media. So it's kind of this very ambitious idea around how can we make a super app and prep there would always be centralized protocol totally reinvent the way social media.

Brian Armstrong: So, it's kind of this very ambitious idea around how can we make a souped graph on crypto with all these decentralized protocols, totally reinvent the way that the social media business models are done. And we think it's basically driving crypto utility. And so, it's got a lot of potential around both stablecoin usage, how DeFi is used, how do we get the next billion people on chain? Because it's difficult for us to go to every country of the world with our regulated financial service products and go get a local license and set up a local team and get a local bank partnership.

[Company Representative 8] (Coinbase): We deserve a better system. Easier, simpler, faster. That's how crypto works.

[Video Narrator 3]: We deserve a better system. Easier, simpler, faster. That's how crypto works.

[Company Representative 9] (Coinbase): Just a simple transfer. Secure. Like a digital handshake.

[Video Narrator 1]: Just a simple transfer. Secure. Like a digital handshake. There is a way to update the system, and we're showing you exactly how to do it.

Our business models are done.

And we.

[Company Representative 10] (Coinbase): There is a way to update the system, and we're showing you exactly how to do it.

We think it's basically driving bristow utility and so it's a it's got a lot of potential around both stable point usage.

We think it's basically driving crypto utility and so it's a it's got a lot of potential around both stable coin usage.

How deep is used how do we get the next billion people unchanged because it's difficult for us to go to every country of the world with our regulated financial service products and you'll get a local license and set up a local team and you look at a local bank partnership self custodial wallets like base. The base that we believe are going to help us get to that 1 billion users in the long tail of countries.

How deep is used how do we get the next billion people unchanged because it's difficult for us to go to every country of the world with a regulated financial service products and you'll get a local license and set up a local team and looking at a local bank partnership South custodial wallets like base. The base App. We believe are going to help us get to that 1 billion users in the long tail of countries.

Alesia Haas: Hello. Happy August. Happy post-earnings. We are delighted to be here with you all today. So hello, everyone. Thanks for joining us live on X. I'm Alesia Haas, Chief Financial Officer of Coinbase, and I'm here with our co-founder and CEO, Brian Armstrong. As always, we are so excited to connect with you, our customers, our community, our shareholders, to talk about this past quarter, Q2 2025, and answer questions. This is a live conversation, and we'll be covering pre-submitted and taking questions in real time. We won't be answering questions on when we'll list a token, any specific customer support cases, and regulatory questions that we covered in depth on earnings day. Or personal questions, we're just going to skip today. All right. Before we get started, I have to remind you that we may make comments on risks or forward-looking statements which may vary materially from actual results.

Brian Armstrong: Self-custodial wallets like Base, the Base app, we believe are going to help us get to that billion users in the long tail of countries while our centralized products do the best at creating financial services in some of the biggest economies of the world. So, there's a whole bunch of different ways Base is monetizing as well. I don't know, Alesia, do you want to touch on some of those?

While our centralized products due to the best at creating financial services at some of the biggest economies of the world.

While our centralized products do the best that creating financial services at some of the biggest economies of the world.

So theres a whole bunch of different ways basis, monetizing as well I don't know Alicia do you want to touch on some of those.

So theres a whole bunch of different ways basis, monetizing as well I don't know at least you want to touch on some of those.

Sure I'm happy to say that the <unk> directly as monetizing with sequencer fees and you can find those on our other transaction revenues.

Alesia Haas: Sure, I'm happy to. So, the Base chain directly is monetizing with sequence fees, and you can find those in our other transaction revenues. But we really benefit from the indirect revenue that Base drives. So, Base, as Brian just shared, is driving USDC growth. Base is driving people to say, "Oh, I might want to transact on chain in other ways." And so, it drives trading revenue, and it's just the overall ecosystem and flywheel effect of the more we can bring on chain, the more our other products and services will monetize by these.

Sure I'm happy to say that the pace seen directly it's monetizing with sequencer fees and you can find those on our other transaction revenues.

We really benefit from the indirect revenue extracts.

Really benefit from the indirect route strides.

So basic Brian just shared is driving us to see growth.

This is Bryan just shared is driving you actually see growth.

It's driving people to say, Oh, I might want to transact on scene in other ways into electronic trading revenue and it's just the overall ecosystem that flywheel effect of the more we can bring on chain the more our other products and services will monetize.

It's driving people to say Oh, I might want to transact on scene in other ways and then somebody tries trading revenue and it's just the overall ecosystem and flywheel effect at the more we can bring on chain to more of our other products and services and monetize.

Alesia Haas: Information concerning our risks, uncertainties, and other factors that could cause these results to differ is included in our SEC filings. With that, it's time to kick things off, and here is our first question for Brian. Rachel on chain asks, "What role do Base and the Base App play in Coinbase's Q2 performance and our long-term vision?

Information concerning our risks, uncertainties, and other factors that could cause these results to differ is included in our SEC filings. With that, it's time to kick things off, and here is our first question for Brian. Rachel on chain asks, "What role do Base and the Base App play in Coinbase's Q2 performance and our long-term vision?

Yes. This is really going to be pushing the frontier I guess I'll make one other kind of.

Brian Armstrong: Yeah. This is really Coinbase pushing the frontier. I guess I'll make one other kind of comment, which is that we try to really have this resource allocation around 70-20-10. So, 70% goes to the core, 20% to adjacent bets, 10% are venture. And we do want to really take ambitious bets in that venture bucket. The Base app is an example of that. In Base itself, I would say the chain. And so, that's one thing that Coinbase I think does well. We have a portfolio of bets on the frontier. Not all of them are going to work, but some of them turn out to be massive. Like USDC started as one of those. And Base is an exciting venture bet as well.

Yes. This is really going to be pushing the frontier I guess I'll make one other kind of.

Comment, which is that we try to really have this resource allocation around 70000 tons, a 70% goes to the core of 20% to adjacent that's 10% of our venture and we do want to really take ambitious best in that venture bucket based based off as an example of that.

Comment, which is that we try to really have this resource allocation around 70000 tons, a 70% goes to the core of 20% to adjacent that's 10% of our venture and we do want to really take ambitious bets in that venture bucket based based off as an example of that and base itself I would say that the chain and so that's one thing that.

Brian Armstrong: Yeah. Thanks for the question. Great to be with you all live here to get some more questions answered. Base is a really innovative chain that we created, built on top of Ethereum, that helps it scale. We just recently launched the Base App. Now, these two things, they're not a major contributor to our core metrics in Q2, but they are making incredible progress. Just to give you a couple of stats, the Base chain, you know, it saw stablecoin volume consistently topping $4 billion a month, which is great. On-chain assets on Base grew over 20%. They reached more than $12 billion. We're progressively decentralizing Base. We want it really to be open to everyone. It reached what we call Stage One Decentralization. It was at stage zero previously. We'll get to stage two eventually.

Itself I would say that the chain and so that's one thing the coinbase I think does well we have a portfolio of bets on the frontier not all of them are going to work, but some of them turned up to be massive like uscc's started out as one of those.

Coinbase I think does well we have a portfolio of bets on the frontier not all of them are going to work, but some of them turned out to be massive like USCC started out as one of those.

Basis, an exciting venture bad as well.

Alright next question <unk>.

Alesia Haas: Absolutely. All right. Next question. Coinbase Doc. I'm super duper excited about the Coinbase One credit card. Maximum of 4% Bitcoin back is a no-brainer. Is it sustainable, Brian? Will more choice of crypto assets be added in the future?

Absolutely Alright next question.

I'm Super Duper excited about the clean base, one credit card maximum 4% claimed back at a no brainer.

Scott.

I'm Super Duper excited about the claim based upon credit card maximum 5% claimed back is a no brainer.

Is it sustainable Brian.

Is it sustainable O'brien.

We're more choice of crypto assets to be added in the future.

More choice of crypto assets to be added in the future.

Yeah, well, thanks, <unk> and everyone should follow his account if not already there.

Brian Armstrong: Yeah. Well, thanks, Coinbase Doc, and everyone should follow his account if you don't already. He's got a lot of great content out there following us as an analyst. So, yes, I think it is sustainable. Look, let me just zoom out first. We got a lot of positive feedback about the Coinbase credit card. Most of the people, they love the rewards. The idea of getting 4% in Bitcoin back is really appealing. And then they also love the design of it. I think it was a very novel and innovative design. This is kind of think of this as the first version of the Coinbase credit card that we want to put out as we provide more and more financial services that are plugged into people's deposits on Coinbase. And it's appropriate that we started with a Bitcoin-focused card.

Yeah, well, thanks, <unk> and everyone should follow his account if you don't already there he is.

Got it got it.

A lot of great content out there following us as an analyst.

We kind of go out and got a lot of great content out there following us as an analyst.

So yes, I think it is sustainable for zoom out first we got a lot of positive feedback about the communities credit card, mostly people below the rewards the idea of getting 4% in bitcoin back is really appealing and then they also love the design of it I think it was a very novel and innovative design. This is kind of think of as the first.

So yes, I think it is sustainable, but let me just zoom out first but we got a lot of positive feedback about the <unk> credit card, mostly people. They loved the rewards the idea of getting 4% in bitcoin back is really appealing and then they also loved the design of it I think it was a very novel and innovative design. This is kind of think of this as the first version of the quite a bit.

Brian Armstrong: And then we actually launched the Base App because we want to make sure that the chain is usable and people who are building on top of it can get distribution. As I mentioned in the earnings call, we now have over 700,000 people on that waitlist. I've been using the beta app quite a bit, and it's amazing. You post content. You earn money from doing that. Content creators, whether they're on X or they're musicians or they have a podcast, they can have a direct relationship with their audience and monetize it. It integrates. It's not just a decentralized social app. It's integrating all these decentralized protocols which have come together: decentralized identity, messaging, third-party apps, and of course, a self-custodial wallet with decentralized social media.

And then we actually launched the Base App because we want to make sure that the chain is usable and people who are building on top of it can get distribution. As I mentioned in the earnings call, we now have over 700,000 people on that waitlist. I've been using the beta app quite a bit, and it's amazing. You post content. You earn money from doing that. Content creators, whether they're on X or they're musicians or they have a podcast, they can have a direct relationship with their audience and monetize it. It integrates. It's not just a decentralized social app. It's integrating all these decentralized protocols which have come together: decentralized identity, messaging, third-party apps, and of course, a self-custodial wallet with decentralized social media.

First version of the <unk> credit card that we want to put out as we provide more and more financial services. They are plugged into people's pockets.

Credit card that we want to put out as we provide more and more financial services that are plugged into people's pockets.

And the.

Okay.

And it's appropriate that we started with a bitcoin focused card, we're sort of speaking to our core audience.

Appropriate that we started with a bitcoin focused cards were sort of speaking to our core audience.

Brian Armstrong: We're sort of speaking to our core audience with the Genesis block right on the front of it. And over time, you can imagine us expanding this to providing rewards. I mean, actually, I think at launch you'll probably be able to choose the rewards in a different asset if you want, even though the card is Bitcoin-focused. But that's not the default. But over time, we'll have different credit card variants that come out with different designs for different types of people, even some that are a little bit more, let's say, they won't draw quite as much attention if you were to pay with it. And so, we wanted to start with our core audience, but we'll expand over time to have a couple of different options of cards that people can choose from. And I think in terms of is it sustainable? We believe so, yes.

With the Genesis block right on the front of it and over time, you can imagine us expanding as to providing rewards I mean.

With the Genesis block right on the front of it and over time, you can imagine us expanding this to providing rewards I mean actually I think at launch you'll probably be able to choose the rewards at a different asset if you want even to the card as bitcoin focused but that's not the default, but overtime will have different credit card variance that come out with different designs for different types of people.

Actually I think at launch will probably be able to choose the rewards is a different asset. If you wanted the cards bitcoin focus, but that's not the default, but overtime will have different credit card variants that come out with different designs for different types of people.

Brian Armstrong: So it's kind of this very ambitious idea around how can we make a super app on crypto with all these decentralized protocols, totally reinvent the way that social media business models are done. And we think it's basically driving crypto utility. And so it's got a lot of potential around both stablecoin usage, how DeFi is used, and how do we get the next billion people on-chain. Because it's difficult for us to go to every country of the world with our regulated financial service products and go get a local license, set up a local team, and get a local bank partnership. Self-custodial wallets like the Base App, we believe, are going to help us get to that billion users in the long tail of countries while our centralized products do the best at creating financial services in some of the biggest economies of the world.

So it's kind of this very ambitious idea around how can we make a super app on crypto with all these decentralized protocols, totally reinvent the way that social media business models are done. And we think it's basically driving crypto utility. And so it's got a lot of potential around both stablecoin usage, how DeFi is used, and how do we get the next billion people on-chain. Because it's difficult for us to go to every country of the world with our regulated financial service products and go get a local license, set up a local team, and get a local bank partnership. Self-custodial wallets like the Base App, we believe, are going to help us get to that billion users in the long tail of countries while our centralized products do the best at creating financial services in some of the biggest economies of the world.

Even some that are a little bit more let's say.

They won't draw it quite as much attention. If you were to if you were to pay with it and so we wanted to start with our core audience, but will expand over time to have a couple of different options of cards that people can choose from and I think in terms of is it sustainable we believe so yes.

They won't draw quite as much attention. If you were to if you were to pay with it and so we wanted to start with our core audience, but will expand over time to have a couple of different options of cars that people can choose from and I think in terms of is it sustainable we believe so yes. I mean, we're we have a suite of revenue streams now and products when people come into the store.

Brian Armstrong: I mean, we have a suite of revenue streams now and products. When people come in and they store crypto with Coinbase and Fiat, you know, they're doing trading, they're doing staking, they're doing payments. They're increasingly able to do borrowing and lending since we've integrated the Morpho protocol on DeFi. And there'll be other monetization options over time. You know, Base is monetizing in a variety of ways that Alesia just mentioned. So, we think that when someone becomes a Coinbase One subscriber, it's kind of like saying, "Okay, I'm just going to think about the crypto economy. I'm just going to use Coinbase for all these different things." And so, we can monetize in a variety of ways and plug more benefits into the Coinbase One program.

We have a suite of revenue streams, now and products when people come into the store crypto and <unk> and beyond.

Crypto with Coinbase and Fiat.

Theyre doing trading theyre doing straight into doing payments.

Theyre doing trading theyre doing stake into doing payments.

They are increasingly able to do borrowing and lending since we've integrated morpho protocol on <unk>.

They are increasingly able to borrowing and lending since we've integrated morpho protocol on <unk>.

And there'll be other monetization options over time, you know basis monetizing in a variety of ways at least you just mentioned it. So we think that when someone becomes a <unk> subscriber is kind of like saying, okay. I'm just going to think about the cryptoclimate I'm just going to use point based for all these different things and so we can we.

Brian Armstrong: So there's a whole bunch of different ways Base is monetizing as well. I don't know, Alesia, do you want to touch on some of those?

So there's a whole bunch of different ways Base is monetizing as well. I don't know, Alesia, do you want to touch on some of those?

And there'll be other monetization options over time, you know basis, monetizing and Friday ways that Alicia just mentioned it. So we think that when someone becomes a coinbase one subscriber it's kind of like saying, Okay. I'm just going to think about crypto economy, I'm just going to use point base for all these different things and so we can we can monetize in a variety of ways.

Alesia Haas: Sure. I'm happy to. So the Base chain directly is monetizing with sequencer fees, and you can find those in our other transaction revenues. But we really benefit from the indirect revenue that Base drives. So Base, as Brian just shared, is driving USDC growth. Base is driving people to say, "Oh, I might want to transact on-chain in other ways." And so it drives trading revenue, and it's just the overall ecosystem and flywheel effect of the more we can bring on-chain, the more our other products and services will monetize by Base.

We can monetize a variety of ways and plug more benefits into the <unk> one program.

More benefits into this one program.

And if I add on a couple of thoughts there. So I'm speaking from the pure CFO finance seats. So yes. We've modeled this yes. We believe these rewards are sustainable, but I want to share that the credit card is not designed to be a big driver of our revenue. The purpose of the credit card is to drive engagement utility and we believe that we will monetize our customers to others.

Alesia Haas: I just want to add on a couple of thoughts there. So, I'm speaking from the pure CFO seat, the finance seat. So, yes, we've modeled this. Yes, we believe these rewards are sustainable. But I want to share that the credit card is not designed to be a big driver of our revenue. The purpose of the credit card is to drive engagement, utility, and we believe that we will monetize our customers through other things, as Brian just alluded to. So, don't think of the credit card as a big revenue driver. Think of it as a huge engagement driver, driving utility, and driving our platform to grow through users' delight of this credit card and the more utility of crypto.

And if I add on a couple of thoughts there.

I'm speaking from the CFO seat finance Sito, yes, we've modeled this yes. We believe these rewards are sustainable, but I want to share that the credit card is not designed to be a big draw.

Brian Armstrong: Yeah. This is really Coinbase pushing the frontier. I guess I'll make one other kind of comment, which is that we try to really have this resource allocation around 70/20/10. So 70% goes to the core, 20% to adjacent bets, 10% are venture. We do want to really take ambitious bets in that venture bucket. The Base App is an example of that. In Base itself, I would say the chain. That's one thing that Coinbase, I think, does well. We have a portfolio of bets on the frontier. Not all of them are going to work, but some of them turn out to be massive. Like USDC started as one of those. Base is an exciting venture bet as well.

Driver of our revenue the purpose of the credit card is to drive engagement utility and we believe that we will monetize our customers through other things as Bryan just alluded to so don't think of the credit card as a big revenue driver.

As Brian alluded to so don't think of the credit card at the Big revenue driver think of it as a huge engagement driver driving utility and driving our platform to grow through using.

A huge engagement driver driving utility and driving.

For them to grow through you're still light, it's credit card in the market.

It's credit card in the mortgage market.

Yes, Great point I would also say, it's like a it's kind of a wedge into payments, where we have all the customers who want to spend crypto not every merchant accepts crypto, yet and so giving them. This card that allows them to spend their crypto, whether it's <unk> or anywhere.

Brian Armstrong: Yeah, great point. I would also say it's kind of a wedge into payments where we have all these customers who want to spend crypto. Not every merchant accepts crypto yet. And so, by giving them this card, it allows them to spend their crypto, whether it's USDC or anywhere that these credit cards are accepted. It kind of gets you one half of the chicken and egg, and then you can go build up the other side of the market more easily and go land a bunch of merchants, which we're also doing with Shopify and our crypto service products, etc. So, yeah.

Yes, Great point I would also say, it's like it's kind of a wedge into payments, where we have all the customers who want to spend crypto not every merchant accepts crypto, yet and so giving them. This card that allows them to spend their crypto, whether it's <unk> or anywhere.

Red cards are accepted it kind of gets you one half of the chicken and egg and then you can go build up their side of the market more easily and go land a bunch of merchants, which we're also doing with shopify and our surface products et cetera.

Credit cards are accepted it kind of gets you one half of the chicken and egg and then you can go build out the other side of the market more easily and go buy a bunch of merchants, which we're also doing with shopify and our surface products et cetera. So yes.

Alesia Haas: Absolutely. All right. Next question. Coinbase Duck. "I'm super duper excited about the Coinbase One credit card. Maximum 4% Bitcoin back is a no-brainer. Is it sustainable, Brian? Will more choice of crypto assets be added in the future?

Yes.

Alright next question. Thank you Rodolfo Yoshi.

Alesia Haas: All right. Next question. Thank you, Rodolfo Yoshi. He asks, how do you foresee the relationship with Circle evolving? Will it become more integrated, or will Coinbase divest and create further separation?

Alright next question. Thank.

Thank you Rodolfo Yoshi.

Brian Armstrong: Yeah. Well, thanks, Coinbase Duck, and everyone should follow his account if you don't already. He's got a lot of great content out there following us as an analyst. So yes, I think it is sustainable. Look, let me just zoom out first. We got a lot of positive feedback about the Coinbase credit card. Mostly, people they love the rewards. The idea of getting 4% in Bitcoin back is really appealing. And then they also love the design of it. I think it was a very novel and innovative design. This is kind of taking this as the first version of the Coinbase credit card that we want to put out as we provide more and more financial services that are plugged into people's deposits on Coinbase. And it's appropriate that we started with a Bitcoin-focused card.

Yeah, how do you foresee the relationship with circle evolving will it become more integrated or will claim based on SaaS and create further separation.

He asks how do you foresee the relationship with circle evolving will it become more integrated or will claim based the vast and create further separation.

Exit lag powered by AI.

Brian Armstrong: Yeah. Well, we have a great partnership with Circle. We're definitely not going to divest in any way or anything like that. I mean, we want to lean in and just work more with them. So, I'm not sure what you mean exactly by integrated, but you know, they are the issuer and we're the distributor. We're going to continue to build a great set of products and services that use USDC as default, whether that's B2B payments that we're launching, you know, merchant acceptance that we've just launched with Shopify using Coinbase Commerce and Base Pay. And of course, it's live and we use USDC in a lot of our trading pairs as well with our international exchange and our exchange in the US. And so, even with Perps and all these things that we just launched in the US.

Yes, well, we have a great partnership with circle.

The world's first game optimization platform supercharged by artificial intelligence.

Absolutely not going to divest in any way or anything like that I mean, we want to lean in and just work more with them. So.

Our exclusive multi path tech combined with AI constantly finds the best connection routes for you and over 1900 games, making sure Youre gameplay data assumes at warp speed through multiple paths around the globe.

I'm not sure what you mean exactly by integrated but.

They are the issuer and where the distributor.

We're going to continue to build a great set of products and services that use USB C. A default whether that be payments that we're launching.

With over 1000 servers across five continents, and $18 million optimizations per week, you will always be one frame ahead with exit lag dominating even the craziest matches from anywhere.

Merchant acceptance that we just launched with shopify using.

Brian Armstrong: We're sort of speaking to our core audience with the Genesis Block right on the front of it. Over time, you can imagine us expanding this to providing rewards. I mean, actually, I think at launch, you'll probably be able to choose the rewards in a different asset if you want, even though the card is Bitcoin-focused, but that's not the default. But over time, we'll have different credit card variants that come out with different designs for different types of people, even some that are a little bit more, let's say, they won't draw quite as much attention if you were to pay with it. And so we wanted to start with our core audience, but we'll expand over time to have a couple of different options of cards that people can choose from. I think, in terms of is it sustainable, we believe so, yes.

We're sort of speaking to our core audience with the Genesis Block right on the front of it. Over time, you can imagine us expanding this to providing rewards. I mean, actually, I think at launch, you'll probably be able to choose the rewards in a different asset if you want, even though the card is Bitcoin-focused, but that's not the default. But over time, we'll have different credit card variants that come out with different designs for different types of people, even some that are a little bit more, let's say, they won't draw quite as much attention if you were to pay with it. And so we wanted to start with our core audience, but we'll expand over time to have a couple of different options of cards that people can choose from. I think, in terms of is it sustainable, we believe so, yes.

Somebody's commerce in base pay.

And of course, it's live and we used to see in a lot of our trading pairs as well with our international exchange.

Your performance with the diagnostic center and watch exit lag flex on your connection in real time.

Our exchange and the U S and so with even with perks and all these things that we just launched in the U S. So we're going to continue to launch great products with USB C. We think it is.

Brian Armstrong: So, we are going to continue to launch great products with USDC. We think it is the largest regulated stablecoin at this point. We think that there's a network effect to stablecoins where if both the sender and the recipient use the same coin, it's easier to understand. The UX is better. There's not an FX transaction underneath. So, I know we're seeing a lot of proliferation of different stablecoins now. And sometimes when companies are coming into the crypto space, they say, "Oh, we should make our own stablecoin. These things seem very valuable." And then they realize over time that the interoperability is actually quite important. And so, I would just encourage any of those folks coming into the space, you know, reach out to us, reach out to Circle.

With our killer features Youre getting the ultimate go up for your game play.

The largest regulated stable coin at this point.

From game connection to Fps boost every millisecond count.

Less latency lag packet loss no disconnect to more wins.

Experience the future of gaming with.

With the world's first AI powered game optimization platform.

I know, we're seeing a lot of proliferation of different stable points now and sometimes when people are companies are coming into the crypto space. They say Oh, we should make around stable claim these things seem very valuable and then they realize over time that the interoperability is actually quite important and so I would just encourage.

We had to exit lag dot com and download now.

Brian Armstrong: I mean, we have a suite of revenue streams now and products. When people come in and they store crypto with Coinbase and fiat, they're doing trading, they're doing staking, they're doing payments. They're increasingly able to do borrowing and lending since we've integrated the Morpho protocol on DeFi. And there'll be other monetization options over time. Base is monetizing in a variety of ways that Alesia just mentioned. So we think that when someone becomes a Coinbase One subscriber, it's kind of like saying, "Okay, I'm just going to think about the crypto economy. I'm just going to use Coinbase for all these different things." And so we can monetize a variety of ways and plug more benefits into the Coinbase One program.

I mean, we have a suite of revenue streams now and products. When people come in and they store crypto with Coinbase and fiat, they're doing trading, they're doing staking, they're doing payments. They're increasingly able to do borrowing and lending since we've integrated the Morpho protocol on DeFi. And there'll be other monetization options over time. Base is monetizing in a variety of ways that Alesia just mentioned. So we think that when someone becomes a Coinbase One subscriber, it's kind of like saying, "Okay, I'm just going to think about the crypto economy. I'm just going to use Coinbase for all these different things." And so we can monetize a variety of ways and plug more benefits into the Coinbase One program.

We're going to see you fast dot com and nationally accredited provider of nursing continuing education.

Any of those works coming into the space reach out to us reach out to circle either of US can help you get set up and.

To access our course lifting click the question Frank on the main menu if you're a first time user and haven't registered an account you will see a dropdown menu that contains a full costless click.

Brian Armstrong: Either of us can help you get set up and make sure that you're getting shared economics by using USDC as well, I should mention. And so, there's kind of no reason to go create your own. There's a lot of overhead to do that. You can use USDC, get shared economics, and be interoperable with the rest of the ecosystem. So, anyway, we're long and bullish on our partnership with Circle.

Make sure that.

By the way you should you're getting shared economics by using USB C as well I Should've mentioned.

And so there's no reason to go go create your own.

Click the final of course has the option to view a complete course lifting.

There's a lot of overhead to do that you can use your OCC gets shared economics and be interoperable with the rest of the ecosystem.

Have you registered in the account and I loved then you'll be taken directly to the course catalog page.

Okay.

And bullish on our partnerships.

To get started choose your profession and state.

Alesia Haas: I just want to add a few more technical details here in case anyone was interested. We do own a portion of Circle stock. You saw that we took a big gain on that investment in our second quarter results. We own just under 4% of their stock. The ownership of their stock is completely separate and distinct from our collaboration agreement, which drives our revenue in USDC and all of the initiatives that Brian just mentioned. So, whether or not we hold the stock for forever doesn't impact its perpetually renewable contract that we have with Circle, where we continue to benefit from the economics of growing the ecosystem both on our platform and also off platform.

I just want to ask you more technical details here in case any language.

Alesia Haas: I just want to add on a couple of thoughts there. So I'm speaking from the pure CFO seat, the finance seat. So yes, we've modeled this. Yes, we believe these rewards are sustainable. But I want to share that the credit card is not designed to be a big driver of our revenue. The purpose of the credit card is to drive engagement, utility. And we believe that we will monetize our customers through other things, as Brian just alluded to. So don't think of the credit card as a big revenue driver. Think of it as a huge engagement driver, driving utility, and driving our platform to grow through users' delight of this credit card and the more utility of crypto.

This will provide you with a summary of your CE requirements quickly show state requirement information button to see full requirement detail.

Interestingly, we do own portion of circle stock you saw that we took a big gain on that investment in our second quarter results, we own just under 4% of their stock they own.

Here, you will find the requirements needed, including if you live in a state that has mandated course requirements. You will also find the total contact hours needed to fulfill the licensure cycle choosing your profession and state will also displays state required courses at the top of the list in blue and remove any courses that do not apply to your profession.

Shape of their stock is completely separate and distinct from our collaboration agreement, which drives our revenue and you see in all of the initiatives that Brian just mentioned, so whether or not we hold the stock for forever doesn't impact is perpetually renewable contracts that we have with circle.

Continue to benefit from the economics and growing the ecosystem both on our platform and also.

The course listing it will also display suggested courses you may want to take.

Brian Armstrong: Yeah. Great point. I would also say it's kind of a wedge into payments where we have all these customers who want to spend crypto. Not every merchant accepts crypto yet. And so by giving them this card, it allows them to spend their crypto, whether it's USDC or anywhere that these credit cards are accepted. It kind of gets you one half of the chicken and egg, and then you can go build up the other side of the market more easily and go land a bunch of merchants, which we're also doing with Shopify and our crypto as a service product, et cetera. So yeah.

Brian Armstrong: Yeah. Great point. And that's a perpetually renewable agreement. Sometimes we get questions about that too. And so, yeah, we're planning to continue indefinitely into the future.

Yes, great point.

And that's a perpetually renewable agreement.

Sometimes we get questions about that too and so yeah, we continue providing to continue indefinitely into the future.

To start of course with semi topping choose the topics such as pharmacology.

Alesia Haas: All right. Next question. Poet on Base Dotty. Thank you, Base customer. Asks, Brian, I've been building on Base since day one. It's amazing. And it has been amazing to see how much easier it's becoming to onboard people, especially with chat-based agents in the Base app like Momo and Giza, where users can simply message to put their capital work and earn yield. As this experience continues to evolve, what kind of AI or mini-app use cases are you most excited about that could help wallets feel more like intelligent assistants?

Alright next question.

To your move to filter choose all topics from the topic dropdown menu.

On base Scotty based customer.

Asks Brian Ive been delving on base since day one.

To search for a specific course, such as medical errors simply click in the core search box when you're finished click the X to clear your result.

It's amazing and it has been amazing to see how much easier, it's becoming to onboard people, especially with chat based agents in the base like aluminum.

Alesia Haas: All right. Next question. Thank you, Rodolfo Yoshi. He asks, "How do you foresee the relationship with Circle evolving? Will it become more integrated, or will Coinbase divest and create further separation?

By default courses are shown in alphabetical order the contact hours provided for each course are listed to the right of each course title.

Or are you just simply message to put their capital to work and earn yield as this experience continues to evolve what kind of AI. Our mini App use cases are you. Most excited about that could help wallets feel more like an intelligent assistance.

To sort courses by the number of contact hours click the course credits column title.

[Analyst 1]: ExitLag powered by AI. The world's first game optimization platform supercharged by artificial intelligence. Our exclusive multi-path tech combined with AI constantly finds the best connection routes for you and over 1,900 games, making sure your gameplay data zooms at warp speed through multiple paths around the globe. With over 1,000 servers across five continents and 18 million optimizations per week, you'll always be one frame ahead with ExitLag, dominating even the craziest matches from anywhere. Track your performance with the Diagnostic Center and watch ExitLag flex on your connection in real time. With our killer features, you're getting the ultimate glow-up for your gameplay. From game connection to FPS boost, every millisecond counts. Less latency, lag, packet loss, no disconnects to more wins. Experience the future of gaming with the world's first AI-powered game optimization platform. Head to exitlag.com and download now.

[Video Narrator 4]: ExitLag powered by AI. The world's first game optimization platform supercharged by artificial intelligence. Our exclusive multi-path tech combined with AI constantly finds the best connection routes for you and over 1,900 games, making sure your gameplay data zooms at warp speed through multiple paths around the globe. With over 1,000 servers across five continents and 18 million optimizations per week, you'll always be one frame ahead with ExitLag, dominating even the craziest matches from anywhere. Track your performance with the Diagnostic Center and watch ExitLag flex on your connection in real time. With our killer features, you're getting the ultimate glow-up for your gameplay. From game connection to FPS boost, every millisecond counts. Less latency, lag, packet loss, no disconnects to more wins. Experience the future of gaming with the world's first AI-powered game optimization platform. Head to exitlag.com and download now.

Brian Armstrong: Yeah, it's great. I'm glad you're experimenting with this and building on Base. Thank you for doing that. And I do think one of the more exciting areas of Base is we are seeing the proliferation of these AI agents through the chat interface, right? And they can actually help you take actions in the wallet. So, you know, I've tried some of these. You mentioned a few of them, Momo, and there's one banker bot that I've used a little bit as well. So, it's still early with these things, but I think they have a lot of potential. One of the things that I've done is actually, or that I'm excited about, I should say, is having an AI agent that's actually a bit like an advisor, almost like a financial advisor.

Yes, I'm glad you're experimenting with this and building on base. Thank you for doing that and I do think one of the more exciting areas of basis, we are seeing the proliferation of these.

Click the horse titled column, China to switch back to alphabetical sorting.

Surely see fast now offers courses with audio options to filter courses with audio clip the audio column title.

Agents on through the chat interface right and they can actually help you take action in the wallet.

So I've tried some of these you mentioned a few of them Amo and Theres, one banker bought that I've used a little bit as well. So it's still early with these things, but I think we have a lot of potential.

When you have found of course, you're interested in click on the new course option across China.

One of the things that I've done is or that I'm excited about I should say is.

Or if you prefer to start the course by listening to audio clicking on the listen icon will take you directly to the course and automatically start the audio.

Having an agent that's actually a bit like an adviser almost like a financial adviser.

Brian Armstrong: And it could start off by doing relatively simple things like helping you rebalance your portfolio periodically, maybe helping you get better yield on your assets, and making helpful suggestions in that arena. I think the eventual place this could get to is actually making suggested trades for you, right? It could ask you a series of questions and say, you know, what's your level of risk tolerance? Do you want to have regular kind of distributions or cash flow from this, or do you have higher risk, you know, tolerate higher volatility? And then it could actually kind of cruise X and various price charts and whatever it might want to do and periodically make recommendations. Now, query whether that, how does that scale, right? Like if these AI agents are helping all of our customers, you know, does it turn into some sort of a high-frequency thing?

It could start off by doing relatively simple things like.

Helping you rebalance your portfolio periodically maybe helping you get better yield on your assets and making helpful. Suggestions in that arena I think the eventual places could get you is actually making suggested trade score you're right I could ask you a series of questions and say, what's your level of risk tolerance.

We hope you have found this video helpful. Thank you for using <unk> dot com to meet your continuing education neat.

Our attempts to get the most <unk> fast experience checkout or other help videos.

Do you are you do you want to have regular kind of distributions or cash flow from this where you have higher risk.

Yes, well, we have a great partnership with circle, we're definitely not going to divest in any way or anything like that I mean, we want to lean in and just work more with them. So.

Tony Hawk higher volatility and then it could actually kind of cruise acts in various price charged him whatever it might want to do it periodically make recommendations now.

I'm not sure what you mean exactly by integrated but.

[Analyst 2]: Welcome to Cufast.com, a nationally accredited provider of nursing continuing education. To access our course listing, click the Courses link on the main menu. If you're a first-time user and haven't registered an account, you'll see a drop-down menu that contains a full course list. Click the Find Your Courses option to view our complete course listing. If you've registered an account and are logged in, you'll be taken directly to the course catalog page. To get started, choose your profession and state. This will provide you with a summary of your CE requirements. Click the Show State Requirement Information button to see full requirement details. Here you will find the requirements needed, including, if you live in a state that has mandated course requirements. You will also find the total contact hours needed to fulfill the licensure cycle.

[Video Narrator 5]: Welcome to Cufast.com, a nationally accredited provider of nursing continuing education. To access our course listing, click the Courses link on the main menu. If you're a first-time user and haven't registered an account, you'll see a drop-down menu that contains a full course list. Click the Find Your Courses option to view our complete course listing. If you've registered an account and are logged in, you'll be taken directly to the course catalog page. To get started, choose your profession and state. This will provide you with a summary of your CE requirements. Click the Show State Requirement Information button to see full requirement details. Here you will find the requirements needed, including, if you live in a state that has mandated course requirements. You will also find the total contact hours needed to fulfill the licensure cycle.

Query whether that how does that scale right like if these AI agents are helping all of our customers do you have does it turn into some sort of high frequency thing you have to drop the trade in 100 milliseconds or somebody else in.

The issuer where the distributor.

We're going to continue to build a great.

Products and services.

Brian Armstrong: You have to have gotten the trade in 100 milliseconds before somebody else. And, you know, there's a lot of firms out there who have played around with AI trading in the, you know, professional trader industry out there for more than a decade. So, I don't want to claim that this is always going to work, but we are seeing early people experimenting with this in this. You see it on X and on Base, like people playing with these. And I think it's a pretty fascinating field. Like, well, I think we should all have an AI agent advising us on how to do better in our financial lives. It's probably better than just what most people are doing on their own. And I think these AI agents can also really help people with financial literacy, right?

Default, whether that be the repayments that were launching.

At merchant acceptance that we just launched the shopify using.

There's a lot of firms out there who played around with AI trading in the <unk>.

Previous commerce in base pay.

Professional trader industry out there for more than a decade. So I don't want to claim that this is always going to work, but we are seeing early people.

And of course <unk>.

When we used to see in a lot of our trading pairs as well with our international exchange.

Experimenting with this and as you see it on accident on base like people playing with these and I think it's a pretty fascinating feels like well I think we should all we should all have an AI agent advising us on how to do better in our financial lives.

Our change in the U S and so with even with perks and all these things that we just launched in the U S. So we are going to continue to launch great products with USB C. We think it is.

The largest regulated stable coin at this point.

Probably better than just what most people are doing on their own and I think these agents can also really help people with financial literacy.

We think that there's a network effect a stable point, where if both the sender and the recipient use the same coin it's easier to understand the UX is better theres not theres not an FX transaction underneath so I know, we're seeing a lot of proliferation of different stable points now and sometimes when people are companies are coming into the crypto space.

Brian Armstrong: And teach them about dollar cost averaging or how to balance a portfolio. And so, these are ideas that I'm excited about. And AI is probably going to be a way that it updates every app. And so, crypto is no exception.

And teach them about dollar cost averaging.

How to balance the portfolio. So these are ideas that I'm excited about and AI is probably going to be a way that it updates every app and so crypto is no exception.

[Analyst 2]: Choosing your profession and state will also display state-required courses at the top of the list in blue, and remove any courses that do not apply to your profession from the course listing. It will also display suggested courses you may want to take. To sort the course listing by topic, choose a topic such as Pharmacology. To remove the filter, choose All Topics from the topic drop-down menu. To search for a specific course, such as Medical Errors, simply click in the Course Search box. When you're finished, click the X to clear your results. By default, courses are shown in alphabetical order. The contact hours provided for each course are listed to the right of each course title. To sort courses by the number of contact hours, click the Course Credits column title. Click the Course Title column title to switch back to alphabetical sorting.

Choosing your profession and state will also display state-required courses at the top of the list in blue, and remove any courses that do not apply to your profession from the course listing. It will also display suggested courses you may want to take. To sort the course listing by topic, choose a topic such as Pharmacology. To remove the filter, choose All Topics from the topic drop-down menu. To search for a specific course, such as Medical Errors, simply click in the Course Search box. When you're finished, click the X to clear your results. By default, courses are shown in alphabetical order. The contact hours provided for each course are listed to the right of each course title. To sort courses by the number of contact hours, click the Course Credits column title. Click the Course Title column title to switch back to alphabetical sorting.

Alesia Haas: All right. Next question. Coinsterots asks, any plans to pay dividends on Coinbase stock? I guess I'll take this one. No current plans. We are really focused on growth. We are focused on reinvesting into these new exciting areas like the Everything Exchange that Brian mentioned yesterday on our earnings call. And until we are a more mature company, more sustainable, predictable margins, that is not something we're currently contemplating. All right. Next question from live chat. So, now we're moving to live questions. Aksnft, when are you guys addressing the sudden block of Coinbase accounts? People get locked out for no reason.

We should make an unstable clients, obviously seem very valuable and then they realize over time that the interoperability is actually quite important and so I would just encourage.

Alright next question Quinn Shrontz asks.

Any plans to pay dividends on claim based stock.

I guess I'll take the assignment.

No no current plans, but we are really focused on growth. We are focused on reinvesting into these new exciting areas like everything exchange that Brian mentioned yesterday on our earnings call.

Any of those works coming into the space reach out to us reach out to circle either of US can help you get set up in.

To make sure that.

By the way you should you're getting shared economics by using USB C as well as you mentioned.

And until we are a more mature company more sustainable predictable margins that is not something we're currently contemplating.

And so there's kind of no reason to go go create your own.

There's a lot of overhead to do that you can use your OTC gets shared economics and be interoperable with the rest of the ecosystem. So we're we're long and bullish on our partnership with circle K.

Alright.

Next question from live chat so now we're moving to live questions.

<unk> and her team when do you guys addressing the southern block of claim based accounts people get locked out for no reason.

Can I ask you more technical details here in case anyone was interested we do own a portion of circle stock you saw that we took a big gain on that investment in our second quarter results, we own just under 4% of their stock.

Brian Armstrong: Oh, I can take that one. Yeah. So, we've actually been working really hard on this. Thanks for bringing it up. We did notice this starting to happen about, I don't know, six or eight months ago that there were a larger than ordinary number of accounts being blocked. And, you know, look, there's no excuses for it. I don't want to explain. Don't take anything of what I'm saying here as an excuse, but we looked into this deeply and there's a variety of reasons behind it. One is that we have a whole bunch of compliance obligations that are in place that some of these styles can become a little bit overturned up too high and cause too many reviews.

Well I can take that one yeah. So we've actually been working really hard on this thanks for bringing it up we did notice this starting to happen.

The ownership of their stock is completely separate and distinct from our collaboration agreement, which drives our revenue and you see in all of the initiatives that Brian just mentioned, so whether or not we hold the stock for forever doesn't impact is perpetually renewable contracts that we have with circle, where we continue to benefit from the economics and growing the ecosystem both on our platform.

No.

Six or eight months ago that there were a larger than ordinary number.

[Analyst 2]: Additionally, CFS now offers courses with audio options. To filter courses with audio, click the Audio column title. When you have found a course you are interested in, click on the View Course option across from the course title. Or if you prefer to start the course by listening to audio, clicking on the Listen icon will take you directly to the course and automatically start the audio. We hope you have found this video helpful. Thank you for using Cufast.com to meet your continuing education needs. For more tips to get the most out of your CFS experience, check out our other help videos.

Additionally, CFS now offers courses with audio options. To filter courses with audio, click the Audio column title. When you have found a course you are interested in, click on the View Course option across from the course title. Or if you prefer to start the course by listening to audio, clicking on the Listen icon will take you directly to the course and automatically start the audio. We hope you have found this video helpful. Thank you for using Cufast.com to meet your continuing education needs. For more tips to get the most out of your CFS experience, check out our other help videos.

Accounts being blocked.

And look.

There's no excuses for it I don't I don't want to.

Explain.

We'll take anything of what I'm, saying here as an excuse but we looked into this deeply and theres a variety of reasons behind it.

Yep, Great one and.

One is that we have a whole bunch of compliance obligations that are in place that some of these dials can become a little bit over.

Inaccurate perpetually renewable agreement.

Sometimes we get questions about that too and so we continue providing to continue indefinitely into the future.

Turned up too high and cause too many reviews.

Alright next question pallet.

Brian Armstrong: The other thing that we saw was a large number of attackers trying to kind of socially engineer customer accounts and get them to trick them into sending their funds off platforms. So, we had a lot of systems in place to protect customer funds from these if we felt like their accounts were under attack. But it clearly went a little too far and it's tough to find the balance of this sometimes. So, we've had a whole team digging into this for the last six months and made a ton of progress. I think we've reduced the issue by over 90% at this point. And it's a great lesson for us just as we continue to grow. We've got to find the right balance between protecting customer accounts, meeting our compliance obligations, but ultimately you have to create a great customer experience.

The other thing that we saw was a large number of attackers trying to.

Big Dreams start small at Godaddy, we help you take that first step and every step after from getting your domain to creating your website email and online security. We've got you covered.

Cause socially engineer customer accounts and get them to trickle into sending their funds off platform. So we have a lot of systems in place to.

Protect customer funds from these if we felt like their accounts were under attack.

You don't need to be as tech experts you just need a starting point godaddy gives you the tools the expert support and the push to make it real your brand starts here with godaddy.

But clearly with a little too far and it's tough to find the balance of this sometimes so.

We've had a whole team digging into this for the last six months and made a ton of progress.

We've reduced the issue by over 90% at this point and it's a great lesson for US just as we continue to grow we've got to find the right balance between.

Brian Armstrong: Yeah. Well, we have a great partnership with Circle. We're definitely not going to divest in any way or anything like that. I mean, we want to lean in and just work more with them. So I'm not sure what you mean exactly by integrated, but they are the issuer and we're the distributor. We're going to continue to build a great set of products and services that use USDC as a default, whether that's B2B payments that we're launching, merchant acceptance that we've just launched with Shopify using Coinbase Commerce and BasePay. And of course, it's live, and we use USDC in a lot of our trading pairs as well with our international exchange and our exchange in the US. And so even with Perps and all these things that we just launched in the US. So we are going to continue to launch great products with USDC.

I want to share my culture with new friends from around the world.

Protecting customer accounts meeting our compliance obligations, but ultimately you have to create a great customer experience and if you can actually use your crypto when you want to but we haven't made something that's better than the <unk>.

Brian Armstrong: And if you can't actually use your crypto when you want to, then we haven't made something that's better than the traditional financial system. So, yeah, I appreciate you bringing it up. I think we've made a really massive dent in the problem. The next challenge we have is actually to change the perception of it out there, which might even be more difficult because once somebody sees something happen once or twice, they're like, "Oh, that's always going to happen." They might have to see 10 or 20 examples of it the opposite happening for their perception to then be changed. And so, we're going to have to be loud and consistent about sharing these updates that now that we've made some more progress and continue to make sure it doesn't happen again.

And feel supported along the way I want to.

Make methane.

Graduate.

Additional financial system. So I appreciate you, bringing it up I think.

With the skills from a dream carrier.

G study.

Studying other university that is recognized around the world, even mean global opportunity.

We've made a really massive jensen the problem. The next challenge we have is actually to change the perception of it out there which might even be more difficult because.

And that's why.

Thank you.

When somebody sees something happened once or twice, they're like Oh, that's always going to have a <unk> 10 or 20 examples of it the opposite happening for their perceptions of NV changed and so we're going to have to be loud and consistent about sharing these updates that now that we've made some more progress and continue to make sure it doesn't happen again.

Got it.

On base study, thank you based customer.

Brian Armstrong: We think it is the largest regulated stablecoin at this point. We think that there's a network effect to stablecoins where if both the sender and the recipient use the same coin, it's easier to understand. The UX is better. There's not an FX transaction underneath. So I know we're seeing a lot of proliferation of different stablecoins now. And sometimes when people or companies are coming into the crypto space, they say, "Oh, we should make our own stablecoin. These things seem very valuable." And then they realize over time that the interoperability is actually quite important. And so I would just encourage any of those folks coming into the space, reach out to us, reach out to Circle.

We think it is the largest regulated stablecoin at this point. We think that there's a network effect to stablecoins where if both the sender and the recipient use the same coin, it's easier to understand. The UX is better. There's not an FX transaction underneath. So I know we're seeing a lot of proliferation of different stablecoins now. And sometimes when people or companies are coming into the crypto space, they say, "Oh, we should make our own stablecoin. These things seem very valuable." And then they realize over time that the interoperability is actually quite important. And so I would just encourage any of those folks coming into the space, reach out to us, reach out to Circle.

Asks Brian I've been building on base since day one.

Amazing and it has been amazing to see how much easier, it's becoming to onboard people, especially with chat based agents in the base App like noma.

Alesia Haas: Thank you. All right. Next question from Cash Wallet Headquarters asks, or Cash Wallet HQ, how is retail activity relative to institutional activity this quarter? Brian, why don't I start and you can add on? So, this was a quarter where we saw lower volatility as well as a divergence between Bitcoin and all other crypto assets. Bitcoin was up roughly 6%. The market cap of every other asset was down 11%. And that market backdrop tends to really influence how traders trade on our platform. So, with retail, we had slightly lower volume this quarter along with the market. We saw strong hoddling activity. So, 90% of retail users are actually now engaged with things other than trading, staking, using USDC, using their Coinbase card, etc. And we're also seeing them engaging with DeFi lending. So, we also saw over a billion dollars in Bitcoin-backed loans.

Thank you Alright next question.

From Cashcall at headquarters asks Cachalot HQ, how is retail activity relative to institutional activity this quarter.

Where users can simply message to put their capital to work and are known.

And this experience continues to evolve what kind of AI or Minneapolis cases are you. Most excited about that could help wallets feel more like an intelligent assistance.

Why don't I start and you can add on so this was a quarter, where we saw lower volatility as well as.

In convergence between bitcoin and all other crypto assets equivalents up roughly 6% and market cap of every other asset was down 11%.

Yes, that's great I'm glad you're experimenting with dose and building on base. Thank you for doing that and I do think one of the more exciting areas of basis, we are seeing the proliferation of these.

And that market backdrop tend to really influence how traders trade on our platform.

Agents on through the chat interface right and they can actually help you take action in the wallet. So I tried some of these you mentioned a few of them Amo and Theres, one banker bought that I've used a little bit as well. So it's still early with these things, but I think we have a lot of potential.

Brian Armstrong: Either of us can help you get set up and make sure that you're in the, by the way, you're getting shared economics by using USDC as well, I should mention. And so there's kind of no reason to go create your own. There's a lot of overhead to do that. You can use USDC, get shared economics, and be interoperable with the rest of the ecosystem. So anyway, we're long and bullish on our partnership with Circle.

Either of us can help you get set up and make sure that you're in the, by the way, you're getting shared economics by using USDC as well, I should mention. And so there's kind of no reason to go create your own. There's a lot of overhead to do that. You can use USDC, get shared economics, and be interoperable with the rest of the ecosystem. So anyway, we're long and bullish on our partnership with Circle.

Retail, we had slightly lower volume this quarter, along with the market. We saw strong hotaling activity some 90% of retail engaged users actually now engage with things other than trading staking using USCC using their claim based card et cetera.

<unk>.

One of the things that I've done is or that I'm excited about I should say is.

And we're also seeing them engaging with <unk> lending. So we also saw over $1 billion in debt claimed back swelling.

Having an AI agent, it's actually a bit like an adviser almost like a financial adviser.

Alesia Haas: I just want to add a few more technical details here in case anyone was interested. We do own a portion of Circle stock. You saw that we took a big gain on that investment in our Q2 results. We own just under 4% of their stock. The ownership of their stock is completely separate and distinct from our collaboration agreement, which drives our revenue in USDC and all of the initiatives that Brian just mentioned. So whether or not we hold the stock for forever doesn't impact this perpetually renewable contract that we have with Circle, where we continue to benefit from the economics of growing the ecosystem both on our platform and also off-platform.

Alesia Haas: We're seeing the waitlist for Base grow and people are really looking for the next thing. On the instant side, we actually hit all-time highs on our prime financing. We saw growth in our custody business. We saw strong inflows for the Bitcoin and Ethereum ETFs. And we're also seeing people just get more engaged across the stack. So, the trading, financing, and custody is a real flywheel where most of our customers are using multiple products. Anything you want to add about what we saw this quarter?

We're seeing the waitlist from base grow and people are really looking for the next game.

And it could start off by doing relatively simple things like.

On the inkjet side, we actually hit all time highs on our prime financing we saw growth in our custody business. We saw strong inflows for the bitcoin and Ethereum Etfs.

Helping you rebalance your portfolio periodically maybe helping them get better yield on your assets and maybe helpful suggestions in that arena.

Thank the eventual places to get to is actually making suggested trades for you're right I could ask you a series of questions.

And we're also seeing people just get more engaged across the Saks at the trading financing and custody is a real flywheel, where most of our customers are using multiple products.

Has your level of risk tolerance.

Do you are you do you want to have regular.

Anything you want to add about what we saw this quarter.

Distributions of capital from areas, where you have higher risk.

Brian Armstrong: Nope, nothing to add.

No nothing to add.

Tony Hawk higher volatility and then it could actually.

Alesia Haas: All right.

Brian Armstrong: I was thinking about that, you know, Warren Buffett, Charlie Munger duo there. You know, I just feel like you, you know, turn over to Charlie, anything to say? Nothing to add. Nothing to add.

Alright, thank you about that one.

Brian Armstrong: Yep.

Alesia Haas: All right.

Brian Armstrong: Great point. That's a perpetually renewable agreement. Sometimes we get questions about that too. So yeah, we're planning to continue indefinitely into the future.

But Charlie Munger duo there.

<unk> acts in various price charged him whatever it might want to do it periodically make recommendations now.

I just feel like it turn over to Charlie.

Nothing that nothing that alright, maybe we shouldn't like on Nebraska, and we can do the same next time.

Query whether that how does that scale right like if these AI agents are helping all of our customers.

Alesia Haas: Nothing to add. All right. Maybe we should like go to Nebraska and we can do this there next time.

Alesia Haas: All right. Next question. Bo Pei.

Brian Armstrong: Yeah.

Alesia Haas: All right. Next question. Detrestrail, I hope I got that right, asks, please comment on any plans to add brokerage, IRAs, or one-case services, either directly or possibly by enhancing the industry's ability to offer 24/7 on-chain trading.

Alright next question do you Trust the Trust Trail I Hope I got that right asks please comment on any plans to add brokerage Iras Marlin <unk> services, either directly or possibly by enhancing the industry's ability to offer 20 <unk> trading.

Does it turn into some sort of hybrid with Keybanc.

[Analyst 3]: Big dreams start small. At GoDaddy, we help you take that first step and every step after. From getting your domain to creating your website, email, and online security, we've got you covered. You don't need to be a tech expert. You just need a starting point. GoDaddy gives you the tools, the expert support, and the push to make it real. Your brand starts here with GoDaddy.

[Video Narrator 6]: Big dreams start small. At GoDaddy, we help you take that first step and every step after. From getting your domain to creating your website, email, and online security, we've got you covered. You don't need to be a tech expert. You just need a starting point. GoDaddy gives you the tools, the expert support, and the push to make it real. Your brand starts here with GoDaddy.

The trade in 100 milliseconds or somebody else in.

You know theres a lot of hard out there who played around with AI trading in the.

Professional trader industry out there for more than a decade. So I don't want to claim that this is always going to work, but we are seeing early people.

Brian Armstrong: Great. Well, when you say brokerage, I'm assuming you're talking about securities here or stocks. And, you know, we're making a big push now to bring tokenized securities on chain. We think every asset class is going to come on chain. We talked about that in the earnings call. We're calling it the Everything Exchange, right? Every asset class on the internet and really that's coming on chain should be tradable on one platform. We think that that's an enormous opportunity. So, we're making a big push to do that. And as you pointed out here, 24/7 trading is one of the things that that could give you. You know, we've been doing that in crypto for a long time, but that represents an opportunity to update the traditional financial system. There's lots of other benefits we can talk about for tokenized securities.

Great well when you when you say brokerage I'm, assuming you're talking about securities here or stocks.

Permitting with this and as you see it on accident on base like people playing with these.

And we're making a big push now to Breen took nine securities Entre. We think every asset class is going to come on change we talked about that in the earnings call.

And I think it's pretty fascinating feels like I think we should all you should all have an attitude advising us on how to do better in our financial lives.

Probably better than just what most people are doing on their own and I think our agents can also really help you with financial literacy.

We're calling it everything exchange right of every asset class on the Internet and really that's coming on change can be tradable on one platform, we think that that's an enormous opportunity.

[Company Representative 11] (Coinbase): I want to share my culture with new friends from around the world and feel supported along the way. I want to make my parents proud and graduate with the skills for my dream career.

[Video Narrator 7]: I want to share my culture with new friends from around the world and feel supported along the way. I want to make my parents proud and graduate with the skills for my dream career.

And teach them about dollar cost averaging.

So, we're making a big push to do that and as you pointed out here 24, seven trading is one of the things that I could give you.

How to balance the portfolio and so these are ideas that I'm excited about and AI is probably going to be a way that it update every app and so crypto is no exception.

We've been doing that crypto for a long time, but that represents an opportunity to update the traditional financial system Theres lots of other benefits, we could talk about four.

[Company Representative 12] (Coinbase): I want to study at a university that is recognized around the world, giving me global opportunities.

[Video Narrator 8]: I want to study at a university that is recognized around the world, giving me global opportunities. That's why I chose Base.

Alright next question Quinn Shrontz asks any plans to pay dividends unclaimed de stock.

Took in our securities and I think getting more international distribution, there's a lot of demand for these assets overseas.

Brian Armstrong: And I think getting more international distribution, there's a lot of demand for these assets overseas, you know, spinning at perpetual futures markets. Like, there's a lot of things that it could do and probably some we haven't even thought of too. So, we'll have to kind of lean into the frontier here and see what happens. The question asked about IRA and 401(k) accounts as well. Nothing to announce on that today, but we do see demand for this from customers wanting to open different types of tax-advantaged accounts, etc. And it's something we'll have to support over time.

[Company Representative 13] (Coinbase): That's why I chose Base.

I guess I'll take the fun.

No no current plans we are really focused on growth. We are focused on reinvesting into these new exciting areas like the everything exchange that Brian mentioned yesterday on our earnings call.

Spinning a perpetual futures markets Theres a lot of things that are good.

It could do and it's probably something we havent, even thought up too. So we'll have to kind of lean into the frontier here in two hours.

Alesia Haas: On Base.ie, thank you, Base customer, asks, "Brian, I've been building on Base since day one." That's amazing. It has been amazing to see how much easier it's becoming to onboard people, especially with chat-based agents in the Base App like Moomoo and Given, where users can simply message to put their capital to work and earn yield. As this experience continues to evolve, what kind of AI or mini-app use cases are you most excited about that could help wallets feel more like intelligent assistants?

The question I asked about.

And until we are a more mature company more sustainable predictable margins that is not something we're currently contemplating.

IRI or IRR.

And 401, K accounts as well nothing to announce on that today, but we do see demand for this from customers wanting to open different types of tax finished accounts et cetera.

Alright.

Next question from live chat so now we're moving to live questions.

It's something we'll have to support over time.

Alesia Haas: All right. Next question. Aber12212. What is your opinion, Brian, on meme coins?

Alright next question.

And F T. When you guys addressing the southern block of claim based accounts people get locked out for no reason.

<unk> <unk>.

What is your opinion Brian.

I mean claims.

Brian Armstrong: Yeah. Well, I think there's a lot of people out there that are looking for higher volatility assets. Now that the majors in crypto have become a little bit more steady. And I mean, you can still make great returns investing in the core assets, but I think for people who are trying to do 100X or something like that, they are looking at meme coins. It's created this very fascinating new environment where, you know, Elon will put out a tweet and there'll be a meme coin within 100 milliseconds and someone tries to get in early and, you know, decide what that's going to do or not do. So, I'm not personally somebody who trades a lot of meme coins, but I do think there's something interesting there.

Yes.

Well I think theres a lot of people out there that are looking for higher volatility assets now.

Well I can take that one yeah. So we've actually been working really hard on this thanks for bringing it up we did notice this starting to happen.

Brian Armstrong: Yeah, it's great. I'm glad you're experimenting with this and building on Base. Thank you for doing that. And I do think one of the more exciting areas of Base is we are seeing the proliferation of these AI agents through the chat interface, right? And they can actually help you take actions in the wallet. So I've tried some of these. You mentioned a few of them, Ammo, and there's one Bankerbot that I've used a little bit as well. So it's still early with these things, but I think they have a lot of potential. One of the things that I've done is actually or that I'm excited about, I should say, is having an AI agent that's actually a bit like an advisor, almost like a financial advisor.

To meet the majors in crypto has.

Become a little bit more steady.

No no.

Six six or eight months ago that there were a larger than ordinary number.

I mean, you could still make great returns investing in the core assets, but I think for people who were trying to do 100 X or something like that they are looking at midpoint. This created this very fascinating new environment, where.

Accounts being blocked.

Look there's no excuses for it I don't want to.

Explain.

Ilan will put out a tweet and there'll be a meme going within 100 milliseconds and someone tries to get an early.

Take anything of what I'm, saying here as an excuse but we looked into this deeply and theres a variety of reasons behind it.

That's going to do or not do.

One is that we have a whole bunch of compliance obligations that are in place that some of these dials can get to become a little bit over turned up too high and cause too. Many reviews of the other thing that we saw was a large number of attackers trying to.

So I'm not personally somebody who trades a lot of viewpoints.

But I do think there is something interesting there.

Brian Armstrong: And I don't want to, you know, it's sometimes tempting for people to look at that and say, "Oh, well, you know, you underestimated or whatever." But a lot of new areas, they look like toys at first, but they become quite serious over time. I mean, the internet is probably itself an example of that, where the early internet was just people, you know, putting photos of cats and stuff like that. And it turns out it's now 20% of all global GDP running on the internet. So, you don't want to underestimate these things. I think that what we're doing in the Base app is we're experimenting with a variation of meme coins, which we call content coins, where every post, every type of content you make is a coin and people can trade it.

Wanna.

It's sometimes it's tempting for people to look at that and say, Oh, well, you underestimated or what but a lot of new areas. They looked like toys at first but they become quite serious over time. The internet is probably itself. An example of that where the early intranet, which is people.

Brian Armstrong: And it could start off by doing relatively simple things like helping you rebalance your portfolio periodically, maybe help you get better yield on your assets, and making helpful suggestions in that arena. I think the eventual place this could get to is actually making suggested trades for you, right? It could ask you a series of questions and say, "What's your level of risk tolerance? Do you want to have regular kind of distributions or cash flow from this, or do you have higher risk tolerate higher volatility?" And then it could actually kind of cruise X and various price charts and whatever it might want to do and periodically make recommendations. Now, query whether that how does that scale, right? If these AI agents are helping all of our customers, does it turn into some sort of high-frequency thing?

And it could start off by doing relatively simple things like helping you rebalance your portfolio periodically, maybe help you get better yield on your assets, and making helpful suggestions in that arena. I think the eventual place this could get to is actually making suggested trades for you, right? It could ask you a series of questions and say, "What's your level of risk tolerance? Do you want to have regular kind of distributions or cash flow from this, or do you have higher risk tolerate higher volatility?" And then it could actually kind of cruise X and various price charts and whatever it might want to do and periodically make recommendations. Now, query whether that how does that scale, right? If these AI agents are helping all of our customers, does it turn into some sort of high-frequency thing?

Socially engineer customer accounts and get them to trickle into sending their funds our platform. So we have a lot of systems in place too.

Protect customer funds from diesel we felt like their accounts were under attack.

Putting photos of cats and stuff like that and it turns out its now 20% of all global GDP running on the Internet. So you don't want to underestimate these things.

But clearly with a little too far in its top line the balance of this sometimes so.

We've had a whole team digging into this for the last six months and made a ton of progress.

Alright.

I think that what we're doing in the base off as we're experimenting with a variation of <unk>, which we call content points, where.

We've reduced the issue by over 90% at this point and it's a great lesson for us as we continue to grow we've got to find the right balance between.

Every post every type of content you make.

As a coin and people can trade it in its width for content creators have a direct relationship with their audience. The main points that people trade today, it's often just like an icon.

Brian Armstrong: And it's a way for content creators to have a direct relationship with their audience. The meme coins that people trade today, it's often just like an icon and a piece of text. And so, I'm hoping that with content coins, it can actually be more engaging and dynamic. You could have, you know, a long form podcast or every YouTube video or every Spotify song or every post on X could be a content coin. And people can actually make derivative works of content coins as well. And so, they could, if someone creates a great meme template, you know, there could be a thousand derivatives of it and actually economics could flow back to the creator of the original because it spawns so much creativity from the original. So, I think that's more of the direction that excites me and I think that's where it could go.

Protecting customer accounts meeting our compliance obligations, but ultimately you have to create a great customer experience.

Actually use your crypto when you want to but we haven't made something that's better than the <unk>.

These attacks.

And so I'm, hoping that with content point that can actually be more engaging and dynamic.

Brian Armstrong: You have to have gotten the trade in 100ms before somebody else. There's a lot of firms out there who've played around with AI trading in the professional trader industry out there for more than a decade. I don't want to claim that this is always going to work, but we are seeing early people experimenting with this in a you see it on X and on Base, like people playing with these. I think it's a pretty fascinating field. I think we should all have an AI agent advising us on how to do better in our financial lives. It's probably better than just what most people are doing on their own. I think these AI agents can also really help people with financial literacy, right, and teach them about dollar-cost averaging or how to balance a portfolio.

You have to have gotten the trade in 100ms before somebody else. There's a lot of firms out there who've played around with AI trading in the professional trader industry out there for more than a decade. I don't want to claim that this is always going to work, but we are seeing early people experimenting with this in a you see it on X and on Base, like people playing with these. I think it's a pretty fascinating field. I think we should all have an AI agent advising us on how to do better in our financial lives. It's probably better than just what most people are doing on their own. I think these AI agents can also really help people with financial literacy, right, and teach them about dollar-cost averaging or how to balance a portfolio.

Additional financial system. So, yes, I appreciate you, bringing it up I think.

Could have longhorn podcast or ever Youtube video every sop Spotify com wherever you post on X.

We've made a really massive jensen of problem. The next challenge we have is that going to change the perception of the output.

Could be a contact point and people can actually make derivative works of contact points as well so they could if someone creates a great template.

More difficult because.

When somebody sees something happened once or twice.

I was going to happen the main NSC 10, or 20 examples of it the opposite happening for their perception to then be changed and so we're going to have to be loud and consistent about sharing these updates that now that we've made some more progress and continue to make sure it doesn't happen again.

There could be a thousand derivatives of it and actually economics could slow back with greater of the original because its bond so much creativity from from the original so I think that more of the direction that excites me and I think that's where it could go with the way that people are trading trading mean point today is an early example that we should not discount and and I should mention by the way with the <unk>.

Brian Armstrong: But the way that people are trading meme coins today is an early example that we should not discount. And I should mention, by the way, with the retail on the Coinbase app, we're integrating decentralized exchanges, which is coming out in the next few weeks. All these meme coins, you know, should be available to everybody. We want to make sure we're allowing every asset that's legal to trade to our customers. So, we're very supportive of people trading that if they want to in the Coinbase app as well. It's part of the Everything Exchange. You know, you should be able to trade every asset that is legal to do so.

Thank you Alright next question.

From cash wallet headquarters asks our castle at HQ, how is retail activity relative to institutional activity this quarter.

<unk>.

On liquidity, it's Apple integrating decentralized exchanges, which is coming out next week I'll.

Brian Armstrong: So these are ideas that I'm excited about. AI is probably going to be a way that it updates every app. Crypto is no exception.

So these are ideas that I'm excited about. AI is probably going to be a way that it updates every app. Crypto is no exception.

I will begin points should be available to trade to everybody we want to make sure we're allowing every asset.

Brian why don't I start and you can add on so this was a quarter, where we saw lower volatility as well as a divergence between bitcoin and all other crypto assets equate was up roughly 6% the market cap of every other asset was down 11%.

To our customers. So we're very supportive of people trading up if he wants to win.

Alesia Haas: All right. Next question. CoinStrat asks, "Any plans to pay dividends on Coinbase stock?" I guess I'll take this one. No current plans. We are really focused on growth. We are focused on reinvesting into these new exciting areas like the Everything Exchange that Brian mentioned yesterday on our earnings call. And until we are a more mature company, more sustainable, predictable margins, that is not something we're currently contemplating. All right. Next question from live chat. So now we're moving to live questions. AxeNFT, "When are you guys addressing the sudden block of Coinbase accounts? People get locked out for no reasons.

Maybe it's not as well it's part of the everything has changed you should be able trade every asset that is legal to do so.

Alesia Haas: Next question. Coinbase Ventures has hundreds of portfolio companies. Many are integrated into Base. For example, Zora, Sparkaster, Aerodrome, Uniswap. Are there one or two companies in CB Ventures that are worth highlighting? Thanks for this question, Julian Young.

Next question.

And that market backdrop tend to really influence how traders trade on our platform. So with retail we had slightly lower volume this quarter along with the market.

Previous centuries has hundreds of portfolio companies. Many are integrated and debate for example, Zora forecaster Arab drum.

Strong huddling activity to 90% of retail engaged users actually nowadays for things other than trading staking using USB C. Using their claim based card et cetera.

Are there one or two companies that CB ventures in CPM curious that are worth highlighting thanks for the question Jami.

Brian Armstrong: Yeah, thanks for asking that. I mean, Coinbase Ventures has been an unequivocal success. I think they've made 500 or so investments to date. And, you know, I don't know how much we share this externally, Alesia, but it's up. It's up a lot. So, it's a great set of investments.

Yeah. Thanks for asking that I mean, <unk> has been an unequivocal success I think they've made 500 or so investments to date at <unk>.

And we're also seeing them engaging with <unk> lending. So we also saw over $1 billion and declined backs loans, we're seeing the waitlist for base grow and people are really looking for the next thing on the installer side, we actually hit all time highs on a prime financing we saw growth in our custody business.

I don't know how much we share this externally Alicia, but it's up it's up a lot. So.

That's a great. It's a great set of investment what are the cost though for the most part until we get it.

Alesia Haas: It's recorded at cost, though, for the most part, until we get companies like Circle when we took a $1.5 billion gain this quarter. So, most of the assets that you see on our balance sheet and you see in our financials is at the value that we initially invested at.

Brian Armstrong: Oh, I can take that one. Yeah. So we've actually been working really hard on this. Thanks for bringing it up. We did notice this starting to happen about, I don't know, six or eight months ago that there were a larger than ordinary number of accounts being blocked. And look, there's no excuses for it. I don't want to explain. Don't take anything of what I'm saying here as an excuse, but we looked into this deeply, and there's a variety of reasons behind it. One is that we have a whole bunch of compliance obligations that are in place that some of these dials can become a little bit over turned up too high and cause too many reviews.

We saw strong inflows for the bitcoin and Ethereum Etfs.

Like Circle, and then we took a $1.5 million gain this quarter. So most of the assets that you see on our balance sheet and you see in our financials is at the value that we initially invested at.

And we're also seeing people just get more engaged across the stack to the trading financing and custody is a real flywheel, where most of our customers are using multiple products.

Brian Armstrong: Yeah, that's true. It's tough to mark to market all these things. We don't want to like, you know, also in the private markets, it's hard to really count it because people can have a down round, right? So, we're taking a very conservative approach in how we market to market.

Industrial is tough to mark to market. All these things we don't want to like.

It also in the private market is hard to really count it because people can have a down round right. So we're taking a very conservative approach in how we market markets market, but the appropriate.

Anything you want to add about what we saw this quarter.

No nothing to add.

Alesia Haas: That's the appropriate approach, Brian.

Alright, thank you about that one.

Appropriate oppressed, Brian a very appropriate approach I think assortment gap.

Brian Armstrong: A very appropriate approach.

Warren Buffett charl longer duo there.

Alesia Haas: Yeah, appropriate. Yeah, yeah.

Brian Armstrong: Good. But yeah, I'm very bullish on Coinbase Ventures and, you know, both for just the returns, but also, as you mentioned, it's allowed us to stay close to and help accelerate all these different startups that we've, many of them, like you said, we've integrated into the Base app. We also have a Base ecosystem fund, by the way, I should mention, that is a subset of Coinbase Ventures. And that's, we make grants to people building on top of Base. And that's been a pretty successful program. So, I think the question asked about, are there any others that are worth highlighting? I think there's one, you know, I think prediction markets are very exciting. And I actually would love to see prediction markets come more on chain. You know, some of the early ones are amazing companies.

Yeah.

I just feel like it turn it over to Charlie.

But yes, I am very bullish on Columbus ventures.

Not yet.

Alright, we enable issue like on Nebraska, and we can do this there next time.

Both for just the returns but also.

Brian Armstrong: The other thing that we saw was a large number of attackers trying to kind of socially engineer customer accounts and get them to trick them into sending their funds off-platform. So we have a lot of systems in place to protect customer funds from these if we felt like their accounts were under attack. But it clearly went a little too far, and it's tough to find the balance of this sometimes. So we've had a whole team digging into this for the last six months and made a ton of progress. I think we've reduced the issue by over 90% at this point. And it's a great lesson for us just as we continue to grow. We've got to find the right balance between protecting customer accounts, meeting our compliance obligations, but ultimately, we have to create a great customer experience.

The other thing that we saw was a large number of attackers trying to kind of socially engineer customer accounts and get them to trick them into sending their funds off-platform. So we have a lot of systems in place to protect customer funds from these if we felt like their accounts were under attack. But it clearly went a little too far, and it's tough to find the balance of this sometimes. So we've had a whole team digging into this for the last six months and made a ton of progress. I think we've reduced the issue by over 90% at this point. And it's a great lesson for us just as we continue to grow. We've got to find the right balance between protecting customer accounts, meeting our compliance obligations, but ultimately, we have to create a great customer experience.

As you mentioned, it's allowed us to stay close to and help accelerate all of these different startups that we and many of them like you said, we've integrated to the base.

Alright next question. Please press the Trust Trail I Hope I got that right asks please comment on any plans to add brokerage Iras Marlin <unk> services, either directly or possibly by enhancing the industry's ability to offer 24, seven <unk> trading.

We also have a base ecosystem fund by the way I should mentioned that is a subset of appointments ventures and that's we made grants to people building on top of base and that's been a pretty successful program. So.

Great well when you when you say brokerage I'm, assuming you're talking about securities here or Socs.

I think the question asked about are there any others that are worth highlighting I think there's one.

And we're making a big push now to bring token I Securities Entre, We think every asset class in the commentary we talked about that in the earnings call. We're calling it everything exchange right of every asset class on the Internet and really that's coming on changed tradable on one platform, we think that that's an enormous opportunity.

I think prediction markets are very exciting.

And actually we'd love to see friction markets come more unchain. Some of the early ones are amazing companies, where investors and some of those too but.

Brian Armstrong: We're investors in some of those too, but they, you know, they're like partially on chain, partially off chain. There's a company called Limitless, which is building a totally on-chain prediction market on Base, which is really cool. You can check out the Limitless app. There's also one other one that's a DeFi-powered savings platform called Nook. It's built on Base. That's started by a Coinbase alum. So, yeah, there's a lot of really cool companies that we've invested in and we'll keep doing that. I think it's a great accelerant to the ecosystem.

They're like partially on chain partially off train.

There was a company called limitless, which is building a totally.

On chain prediction market on base, which is really cool you can check out the limitless.

Brian Armstrong: If you can't actually use your crypto when you want to, then we haven't made something that's better in the traditional financial system. So yeah, I appreciate you bringing it up. I think we've made a really massive dent in the problem. The next challenge we have is actually to change the perception of it out there, which might even be more difficult because once somebody sees something happen once or twice, they're like, "Oh, that's always going to happen." They might have to see 10 or 20 examples of the opposite happening for their perception to then be changed. And so we're going to have to be loud and consistent about sharing these updates that now that we've made some more progress and continue to make sure it doesn't happen again.

If you can't actually use your crypto when you want to, then we haven't made something that's better in the traditional financial system. So yeah, I appreciate you bringing it up. I think we've made a really massive dent in the problem. The next challenge we have is actually to change the perception of it out there, which might even be more difficult because once somebody sees something happen once or twice, they're like, "Oh, that's always going to happen." They might have to see 10 or 20 examples of the opposite happening for their perception to then be changed. And so we're going to have to be loud and consistent about sharing these updates that now that we've made some more progress and continue to make sure it doesn't happen again.

So, we're making a big push to do that and as you pointed out here 24, seven trading is one of the things that I could give you.

Theres also one other one that has a deep high powered savings platform called Nook. It's built on base. That's started by a quite base alone. So yes, theres a lot of really cool companies that we've invested in and will keep doing that I think it's a great accelerant to the ecosystem.

We've been doing that crypto for a long time, but that represents an opportunity to update attritional ecosystem.

Lots of other benefits, we could talk about for sure.

Securities.

I think getting more international distribution on solid demand for these assets overseas.

Alesia Haas: All right. Brian, this is from 0xFlare. How's Brian's experience? Brian, how's your experience using the Base app? And how did you and Jesse come up with the Base Shake? What do you plan to do with your earnings from your Base app posts? Is the second question. So, Base Shake and then earnings.

Alright.

Spinning up a retro futures markets, there's a lot of things that.

Brian.

This is kind of a zero X flair.

That could do and it's probably something we haven't even thought of two so we'll have to kind of lean into the frontier here to address.

Bryan Bryan How's your experience using the base App and how did you and Jesse come up with the base shake.

The question I asked about.

Alright.

I am 401k accounts as well nothing to announce on that today, but we do see demand for this from customers wanting to open different types of tax finished accounts et cetera.

What do you plan to deal with your earnings from your base at post the second question. So basic and then earnings yes.

Alesia Haas: Thank you. All right. Next question. From Cash Wallet Headquarters, or Cash Wallet HQ, asks, "How is retail activity relative to institutional activity this quarter?" Brian, why don't I start, and you can add on. So this was a quarter where we saw lower volatility as well as a divergence between Bitcoin and all other crypto assets. Bitcoin was up roughly 6%. The market cap of every other asset was down 11%. And that market backdrop tends to really influence how traders trade on our platform. So with retail, we had slightly lower volume this quarter along with the market. We saw strong holding activity. So 90% of retail users are actually now engaged with things other than trading, staking, using USDC, using their Coinbase Card, etc. And we're also seeing them engaging with DeFi lending. So we also saw over $1 billion in Bitcoin-backed loans.

Brian Armstrong: Yeah. Well, my experience using the Base app so far has been great. I mean, I, you know, I haven't shared this publicly yet, but I just, just in the last few weeks since the app launched, I've been making posts and I've probably, I've earned hundreds of thousands of dollars on the platform. So, I mean, my use case might be a little bit of an exception as one of the people involved in it. But, and I'm, by the way, I'm planning to, you know, pay all that back forward to future creators in the ecosystem.

Yes.

Well my comments using the base up so far has been great.

It's something we watch the board at that time.

Alright next question.

Haven't shared with both of them yet, but I would just just in the last few weeks since the App launch I've been making posted I, probably hundreds of thousands of dollars on the platform. So I mean, it might that might use case might be a little bit of an exception and that's one of the people involved in it but and I'm quite a way I'm planning to pay all of that back towards the future creators in the ecosystem. So.

One two to one to.

What is your opinion Brian.

I mean claims.

Yeah.

Well I think theres a lot of people out there that are looking for higher volatility assets now.

Made the majors in crypto has.

Become a little bit more steady and.

Brian Armstrong: So, to me, it's not necessarily about personally making money on it, but it shows like the magic moment that happened in the app for me, and I think will happen for a lot of other customers is the first time that you post some piece of content and you start to get notifications on your phone about people buying it. And like, you know, you're earning money from your content and it's just arriving into your app. And that's something that a lot of content creators have never experienced before because, first of all, if you're not like, if you don't have, you know, a huge audience and you can't really sell ads, it doesn't make sense for these ad platforms to really go after you if you're not really at massive scale.

I mean, you can still make great returns investing in the core assets, but I think it for people who are trying to do 100 X or something like that they are looking at midpoint. This created this very fascinating new environment, where.

To me, it's not necessarily about personally.

Okay.

For me and I think will happen for a lot of other customers is the first time that you post some piece of content and you start to get notifications on your phone about people buying it.

You all put out of Sweden, there'll be a meme going within 100 milliseconds and someone tried to get in early <unk>.

That's going to do or not do.

Your earning money from your content and it just arriving into your App and that's something that a lot of content creators have never experienced before because first of all if youre not like if you don't have.

So I'm not personally somebody who traded a lot of viewpoints.

But I do think there is something interesting there.

Alesia Haas: We're seeing the waitlist for Base grow, and people are really looking for the next thing. On the instant side, we actually hit all-time highs on our prime financing. We saw growth in our custody business. We saw strong inflows for the Bitcoin and Ethereum ETFs. And we're also seeing people just get more engaged across the stack. So the trading, financing, and custody is a real flywheel where most of our customers are using multiple products. Anything you want to add about what we saw this quarter?

We're seeing the waitlist for Base grow, and people are really looking for the next thing. On the instant side, we actually hit all-time highs on our prime financing. We saw growth in our custody business. We saw strong inflows for the Bitcoin and Ethereum ETFs. And we're also seeing people just get more engaged across the stack. So the trading, financing, and custody is a real flywheel where most of our customers are using multiple products. Anything you want to add about what we saw this quarter?

It's sometimes attempting for people to look at that and say, Oh, well, you underestimated or what but a lot of new areas. They look like toys at first but they become quite serious over the Internet is probably it's open example of that where the early intranet was people.

The huge audience you.

You can't really sell ads, if it doesn't make sense for these AD platform stability.

If youre not really at massive scale.

Brian Armstrong: And then even the ones that are at massive scale, you know, you might have to sell an ad and record this thing and some wire comes into your account two months later and some invoice got paid. It's a totally different experience to have real-time response from people who are consuming your content and saying, do we like it or not? And why? And do we believe that this person is going to create more good content in the future? Do they want to make derivative content or, you know, remix the content that you've put out and make their own content? And if you discover interesting content and you're the early person to share it, then, you know, you can participate in the value chain. So, you're more like a curator instead of the original creator, right?

And then even the ones that are at massive scale you.

You might have to sell an AD and record the staying in some wire comes into your account two months later.

Putting photos of cats and stuff like that and it turns out its now 20% of all global GDP running on the Internet. So you don't want to underestimate these things.

<unk> got paid it's a totally different experience.

Real time response from people, who are consuming our content and saying do we like it or not and why do we believe that this person is going to create more good content in the future. So they want to make.

I think that what we're doing in the base out as we're experimenting with a variation of viewpoint, which we call contact points where.

Brian Armstrong: Nope. Nothing to add.

Derivative content or remixed the content that you've put out and make their own content.

Alesia Haas: All right.

Brian Armstrong: Except thinking about that Warren Buffett, Charlie Munger duo there. I just feel like you turned over to Charlie. Anything to say? Nothing to add. Nothing to add, Alesia.

Every post every type of comment you made.

Is the point and people who traded in wafer contact greater to have a direct relationship with their audience. The main points that people trade today, it's often just like an icon.

If you discover interesting content.

Early persons of share. It then you can participate in the value chain. So youre more like a curator instead of the original creator so anyway, it's been a very and by the way. The App is still it's in beta right. So theres a few rough edges theres things that can be better but those are two of those magic moments are already happening and so it makes me feel like base the base off is really onto something.

Alesia Haas: Nothing to add. All right. Maybe we should go to Nebraska, and we can do this there next time.

Brian Armstrong: So, anyway, it's been a very, and by the way, the app is still, it's in beta, right? So, there's a few rough edges. You know, there's things that could be better, but those sparks and those magic moments are already happening. And so, it makes me feel like the Base app is really onto something. I think the question asked about the Base Shake too, which any of you who don't know, that was the first post I put out there, which was this unintentional, I have to say, awkward moment during the announcement event where I went in for the fist bump and Jesse Pollock wanted to shake hands. And, you know, we did the, you know, some people call it the gear shifter or whatever. And so, that was a fun, awkward moment. It was totally unplanned.

These attacks.

Brian Armstrong: Yeah.

Alesia Haas: All right. Next question. Detress Trail, and I hope I got that right, asks, "Please comment on any plans to add brokerage, IRAs, 401(k) services, either directly or possibly by enhancing the industry's ability to offer 24/7 on-chain trading.

And so I'm, hoping that with consequent to be more engaging and dynamic.

A lot of our podcast wherever Youtube video every soft Spotify wherever you post on X.

I think the question asked about the base shape to which any of you who don't know that that was the first post I put out there which was this unintentional I have to say awkward moment.

Could be a contact point and people can actually make derivative works of contact points as well so they could if someone integrated mean template.

Brian Armstrong: Great. Well, when you say brokerage, I'm assuming you're talking about securities here or stocks. We're making a big push now to bring tokenized securities on-chain. We think every asset class is going to come on-chain. We talked about that in the earnings call. We're calling it the Everything Exchange, right? Every asset class on the internet, and really that's coming on-chain, should be tradable on one platform. We think that that's an enormous opportunity. We're making a big push to do that. As you pointed out here, 24/7 trading is one of the things that that can give you. We've been doing that in crypto for a long time, but that represents an opportunity to update the traditional financial system. There's lots of other benefits we can talk about for tokenized securities.

During the announcement event, where I went into the <unk> and just a follow up.

There could be a thousand derivatives of it and actually economics flow back to the greater of the original because its bond so much creativity front from the original so I think that more of the direction that excite me and I think that's where it could go but the way that people are trading trading mean point today is an early example that we should not discount right.

I wanted to shake hands, and we did some.

Some people call it your shift or whatever.

And so that was a fun awkward moment there was totally unplanned.

Brian Armstrong: And it just, you know, symbolic of us doing it live and being a little awkward ourselves. So, I decided to make that the first post on Base because somebody, I saw somebody post it and they suggested it as an idea. Like, you should coin this as the first. And then I sort of did a throwback to the first post on X that Jack Dorsey did by saying, you know, just setting up my base. So, that was fun. And every post at this point that I do is a content coin. So, it's not unique, like it's a one-off. It's like, I'm going to do every post that way and everybody should.

And I just.

Symbolic of us doing it live and being a little awkward ourselves so.

And I should mention by the way with the retail.

I decided to make the first both on on base because somebody I saw somebody posted and they suggested that as an idea like you should point. This is the first and then I sort of did a throwback to the first boats on X that Jack Dorsey did by saying just setting up my base.

On liquidity, it's Apple integrating centralized exchanges, which is coming out next year.

The main points it should be available to trip to everybody. We want to make sure we're allowing every asset that we could trade to our customers. So we're very supportive of trading up in Washington.

So that was fun.

Every post at this point that I do.

Well, it's part of the everything exchange you should build trade every asset that is legal to do so.

Brian Armstrong: I think getting more international distribution. There's a lot of demand for these assets overseas, spinning up perpetual futures markets. There's a lot of things that it could do, and it's probably something we haven't even thought of yet. So we'll have to kind of lean into the frontier here and see what happens. The question asked about IRA and 401(k) accounts as well. Nothing to announce on that today, but we do see demand for this from customers wanting to open different types of tax-advantaged accounts, etc. It's something we'll have to support over time.

I think getting more international distribution. There's a lot of demand for these assets overseas, spinning up perpetual futures markets. There's a lot of things that it could do, and it's probably something we haven't even thought of yet. So we'll have to kind of lean into the frontier here and see what happens. The question asked about IRA and 401(k) accounts as well. Nothing to announce on that today, but we do see demand for this from customers wanting to open different types of tax-advantaged accounts, etc. It's something we'll have to support over time.

Contact point, so it's not unique like it's a one off it's like I'm going to do.

Every post that way I'd everybody shows.

Next question.

Alesia Haas: All right. This is going to be our last question, Brian. So, from Bore4991, when is Aerodrome FI integration into Coinbase going live?

Alright, this is going to be our last question, Brian So from 449 91.

Queen with centuries has hundreds of portfolio companies many are integrated.

<unk> is arrow trial.

For example, Zora forecaster Arrow drown you thought are there one or two companies that see debentures in CD that tariffs that are worth highlighting thanks for the question Jami young.

F I integration into clean base, calling fly.

Sure.

Brian Armstrong: Well, good news. That should start rolling out over the next several weeks. And this is a big part of our push into the Everything Exchange is we want to have, you know, decentralized exchanges integrated directly into the app. It's kind of that DeFi mullet strategy that we've talked about a few times where in the backend, it's using DeFi or a decentralized exchange in this case, but the customer doesn't really need to know or care about that. The experience to buy something should look pretty much the same. There'll be a very, there'll be a small label that discloses this and you can, you know, you know, we're big on disclosures. But I think most customers, they won't have to care about how it's executing underneath. They just want the best price, the best customer experience.

Well good news that should start rolling out over the next several weeks and.

Yes, thanks for asking that I mean, Permian ventures has been an unequivocal success I think they've made 500 or so investments to date.

This is a big part of our push into everything exchange is we want to have.

Alesia Haas: All right. Next question. Aber12212, "What is your opinion, Brian, on meme coins?

I don't know how much we share this externally Alicia, but it's up it's up a lot.

Decentralized exchanges integrated directly into the App, it's kind of that <unk> strategy that we've talked about a few times square in the backend it's using <unk> a decentralized exchange in this case, but the customer doesn't really need to know or care about that experience to buy something should look pretty much. The same there'll be a very so there'll be a small label exposes us.

Brian Armstrong: Yeah. Well, I think there's a lot of people out there that are looking for higher volatility assets. Now, the majors in crypto have become a little bit more steady. And I mean, you can still make great returns investing in the core assets, but I think for people who are trying to do 100x or something like that, they are looking at meme coins. It's created this very fascinating new environment where Elon will put out a tweet, and there'll be a meme coin within 100 milliseconds, and someone tries to get in early and decide what that's going to do or not do. So I'm not personally somebody who trades a lot of meme coins, but I do think there's something interesting there.

That's a great it's a great quarter.

At a cost though for the most part until we get company wed like to circle, Illinois had a lump like ethylene in the quarter. So most of the assets that you see on our balance sheet and you see our financials is at the value that we initially invested out yes.

Europe has talked to mark to market all these things without one.

And you can.

We're big on disclosures, but I think most customers.

After the private markets, it's hard to really talented people can have a down round, but so we're taking a very conservative approach in how we market mark to market.

I don't have to care about how it's executing underneath they just want the best price the best customer experience. So yes aerodrome is amazing you can drive exchange built on hub base and that will be rolling out in the next few weeks.

Brian Armstrong: So, yeah, Aerodrome is an amazing decentralized exchange built on top of Base. And that'll be rolling out in the next few weeks.

Appropriate oppressed Brian.

Preet approach.

Okay.

Alesia Haas: Awesome. Well, thanks everyone for joining us today.

Okay.

Awesome well, thanks, everyone for joining us today.

But yes, I am very bullish on Columbus ventures.

Brian Armstrong: Thank you.

Thank you.

Both for just the returns but also.

Brian Armstrong: And I don't want to. Sometimes it's tempting for people to look at that and say, "Oh, well, you underestimated it or whatever." But a lot of new areas, they look like toys at first, but they become quite serious over time. I mean, the internet is probably itself an example of that, where the early internet was just people putting photos of cats and stuff like that. And it turns out it's now 20% of all global GDP running on the internet. So you don't want to underestimate these things. I think that what we're doing in the Base App is we're experimenting with a variation of meme coins, which we call content coins, where every post, every type of content you make, it is a coin, and people can trade it. And it's a way for content creators to have a direct relationship with their audience.

And I don't want to. Sometimes it's tempting for people to look at that and say, "Oh, well, you underestimated it or whatever." But a lot of new areas, they look like toys at first, but they become quite serious over time. I mean, the internet is probably itself an example of that, where the early internet was just people putting photos of cats and stuff like that. And it turns out it's now 20% of all global GDP running on the internet. So you don't want to underestimate these things. I think that what we're doing in the Base App is we're experimenting with a variation of meme coins, which we call content coins, where every post, every type of content you make, it is a coin, and people can trade it. And it's a way for content creators to have a direct relationship with their audience.

As you as you mentioned, it's allowed us to stay close to and help accelerate all these different startups that we and many of them like you said, we've integrated to the base.

[music].

We also have based ecosystem funded by the way I should mention that as a subset of equipment debentures and Thats, we made grants to people building on top of base.

Okay.

Yeah.

Okay.

Yes.

Okay.

The program so.

Yes.

A question asked about are there any others.

Uh huh.

Oh.

Highlighting one.

Okay.

No I think prediction markets are very exciting and actually with legacy prediction markets come more unchain. Some of the early ones are amazing companies with restaurants, and some of those too but they.

Okay.

Yes.

Okay.

Yes.

<unk>.

Okay.

Partially located Hershey Austrian.

Yes.

A company called Limitless, which is building that totally.

Okay.

Brian Armstrong: The meme coins that people trade today. It's often just like an icon and a piece of text. And so I'm hoping that with content coins, it can actually be more engaging and dynamic. You could have a long-form podcast where every YouTube video or every Spotify song or every post on X could be a content coin. And people can actually make derivative works of content coins as well. And so they could, if someone creates a great meme template, there could be 1,000 derivatives of it. And actually, economics could flow back to the creator of the original because it spawned so much creativity from the original. So I think that's more the direction that excites me, and I think that's where it could go. But the way that people are trading meme coins today is an early example that we should not discount.

The meme coins that people trade today. It's often just like an icon and a piece of text. And so I'm hoping that with content coins, it can actually be more engaging and dynamic. You could have a long-form podcast where every YouTube video or every Spotify song or every post on X could be a content coin. And people can actually make derivative works of content coins as well. And so they could, if someone creates a great meme template, there could be 1,000 derivatives of it. And actually, economics could flow back to the creator of the original because it spawned so much creativity from the original. So I think that's more the direction that excites me, and I think that's where it could go. But the way that people are trading meme coins today is an early example that we should not discount.

Yes.

Okay.

Jade predicted market on base, which is what we're going to check out.

Okay.

Yes.

Yeah.

There's also one other one that's a key firepower savings platform called Nook. It's built on base. That's started by our current base alone.

Yes, there's a lot of really cool companies that we've invested in and will keep doing that I think is a great accelerant.

Ecosystem.

Alright.

Ian.

This is kind of zero X flare.

Brian Thanks, Ryan How's your experience using the <unk> App and how did you and Jesse <unk> come up with the base fee.

What do you plan to deal with your earnings from your base at COSE.

Speaker 3: President Trump now addressing House Republicans at the White House.

President Trump now addressing house Republicans at the White House.

So they shake and hurting.

Brian Armstrong: I should mention, by the way, with the retail on the Coinbase app, we're integrating decentralized exchanges, which is coming out in the next few weeks. All these meme coins should be available to trade to everybody. We want to make sure we're allowing every asset that's legal to trade to our customers. So we're very supportive of people trading that if they want to in the Coinbase app as well. It's part of the Everything Exchange. You should be able to trade every asset that is legal to do so.

First of all Obama many direct from factory to China.

I should mention, by the way, with the retail on the Coinbase app, we're integrating decentralized exchanges, which is coming out in the next few weeks. All these meme coins should be available to trade to everybody. We want to make sure we're allowing every asset that's legal to trade to our customers. So we're very supportive of people trading that if they want to in the Coinbase app as well. It's part of the Everything Exchange. You should be able to trade every asset that is legal to do so.

Lots of important license and some of them hanging important agencies not anymore are important anything got ph importation is fast cheap and easy just sign up for any cap on our site and some of the shipments for them in two weeks, we'll let you know of the Medina embargo and you're then you can just to pick up or have it delivered to your door.

No paperwork no hassle with Castelli no question, App, Southern Lebanon costs, and sovereign dominant choice and it's so easy product line of womanly from local suppliers, where lineup with ethos ethos and were not a surprise.

Alesia Haas: Next question. Coinbase Ventures has hundreds of portfolio companies. Many are integrated into Base. For example, Zora, Farcaster, Aerodrome, Uniswap. Are there one or two companies in CB Ventures that are worth highlighting? Thanks for this question, Joey Young.

Do you want to know how much of importation cost me all of it for a couple of minutes a supplier you can find our place filling up the request a quote on the site are named says it all important anything darkey H importation and provide visit our website and talked about today.

Brian Armstrong: Yeah. Thanks for asking that. I mean, Coinbase Ventures has been an unequivocal success. I think they've made 500 or so investments to date. And I don't know how much we share this externally, Alesia, but it's up. It's up a lot. So it's a great set of investments.

Alesia Haas: We've held it at cost, though, for the most part until we get companies to go like Circle when we took a $1.5 billion gain this quarter. So most of the assets that you see on our balance sheet and you see in our financials is at the value that we initially invested at.

Hi.

New killer feature to eliminate lag hyping packet loss and disconnect from your gameplay.

Philosophy drops and Valerie youth traffic Shaffer for more Aces FBS drops in fortnite activate fts boost for more hill connection dropped in league of legends use multi path for more wins.

Brian Armstrong: Yeah. That's true. It's tough to mark to market all these things. We don't want to also in the private market. It's hard to really count it because people can have a down round. So we're taking a very conservative approach in how we market.

Packet loss a disconnect in the past the future of gaming is powered by AI had to exit lag dot com and sub now.

Alesia Haas: It's an appropriate approach, Brian.

Brian Armstrong: A very appropriate approach.

Alesia Haas: Very appropriate. Yes. Yeah. Okay.

Brian Armstrong: Good. But yeah, I'm very bullish on Coinbase Ventures, both for just the returns, but also, as you mentioned, it's allowed us to stay close to and help accelerate all these different startups that we've and many of them, like you said, we've integrated into the Base app. We also have a Base ecosystem fund, by the way, I should mention, that is a subset of Coinbase Ventures. And we make grants to people building on top of Base, and that's been a pretty successful program. So I think the question asked about are there any others that are worth highlighting? I think there's one. I think prediction markets are very exciting, and I actually would love to see prediction markets come more on-chain. Some of the early ones are amazing companies. We're investors in some of those too, but they're partially on-chain, partially off-chain.

Yes.

Well Micron excuse me base out so far has been great.

Yes.

I haven't heard it probably wouldn't yet, but I would just just a bit.

Last few weeks as the op loss, making posts.

$100000 platform so.

I mean that might use case might be a little bit of an exception.

The people involved in it but and I'm by the.

We are planning to pay all of that.

Words of future creators in the ecosystem. So to me, it's understood about firstly, making money on it shows like this magic moment that happened in the App for me and I think will happen for a lot of other customers is the first time that you post some piece of content and you start to get notifications on your phone about people buying it.

Brian Armstrong: There's a company called Limitless, which is building a totally on-chain prediction market on Base, which is really cool. You can check out the Limitless app. There's also one other one that's a DeFi-powered savings platform called Nook that's built on Base that's started by a Coinbase alum. So yeah, there's a lot of really cool companies that we've invested in, and we'll keep doing that. I think it's a great accelerant to the ecosystem.

There's a company called Limitless, which is building a totally on-chain prediction market on Base, which is really cool. You can check out the Limitless app. There's also one other one that's a DeFi-powered savings platform called Nook that's built on Base that's started by a Coinbase alum. So yeah, there's a lot of really cool companies that we've invested in, and we'll keep doing that. I think it's a great accelerant to the ecosystem.

Your earning money from your content and it just derive against euro.

That's something that a lot of content creators have never experienced before because first of all if youre not.

No.

A huge audience you.

You can't really so.

Does it make sense for these AD platform stability.

But really at scale.

And then even the ones that aren't massive scale you might have to sell an AD and record the staying in some wire comes into your account two months later.

Alesia Haas: All right. Brian, this is from ZeroX Flare. How's Brian's experience? Brian, how's your experience using the Base app? And how did you and Jesse come up with the Base Shake? What do you plan to do with your earnings from your Base app posts? Is the second question. So Base Shake and then earnings.

Invoice.

Truly different experience.

Real time response from <unk>.

People, who are consuming our content and saying do we like it or not and why do we believe that this person is going to create more good content in the future if they want to make.

Derivative content or remixed the content that you've put out and make their own content.

[Company Representative 4] (Coinbase): Most of the bubble mills that I've grown factories in China. Pero wala kang import license and sobrang mahal ng importation fees? Not anymore. At ImportAnything.ph, importation is fast, cheap, and easy. Just sign up for an account on our site and fill up the shipment form. In two weeks, we'll let you know pag dumating na yung cargo niyo. Then you can choose to pick up or have it delivered to your door. That's it. No paperwork, no hassle with customs, no questions asked. Sobrang baba ng cost, and sobrang dami ng choices. And it's so easy. Para ka lang bumili from local suppliers. Wala lang paikot-ikot and walang surprise fees. If you want to know how much your importation cost niyo before ka bumili sa supplier, you can find out by filling out the request to quote form on the site. Our name says it all. ImportAnything.ph.

[Video Narrator 9]: Most of the bubble mills that I've grown factories in China. Pero wala kang import license and sobrang mahal ng importation fees? Not anymore. At ImportAnything.ph, importation is fast, cheap, and easy. Just sign up for an account on our site and fill up the shipment form. In two weeks, we'll let you know pag dumating na yung cargo niyo. Then you can choose to pick up or have it delivered to your door. That's it. No paperwork, no hassle with customs, no questions asked. Sobrang baba ng cost, and sobrang dami ng choices. And it's so easy. Para ka lang bumili from local suppliers. Wala lang paikot-ikot and walang surprise fees. If you want to know how much your importation cost niyo before ka bumili sa supplier, you can find out by filling out the request to quote form on the site. Our name says it all. ImportAnything.ph.

If you discover interesting content a year the early person to share it.

Then you can participate in the value chain, so youre more like a curator instead of the original creator.

So anyway, it's a very very involved with in App is still it's in beta right. So theres a few rough edges theres things it could be better but those are two of those magic moments are already happening.

It makes me feel like base the base assets really onto something.

I think the question asked about the base shape to which any of you who don't know that that was the first close I put out there which was this.

Unintentional Havent say awkward moment.

During the announcement event, where I went into the <unk> and just.

Wanted to shake hands and we did.

Sure.

And so that was a fun awkward moment there was totally on plan.

[Company Representative 4] (Coinbase): Importation simplified. Visit our website and talk to us today.

Importation simplified. Visit our website and talk to us today.

And as you know.

Symbolic of us doing it live and being a little awkward ourselves so.

I decided to make that the first bullet on base because somebody I saw somebody posted and they suggested it as an idea like disappointed at the first and then I sort of did a throwback to the first boats on expert Dr. Tursi did by saying just setting up my base.

[Company Representative 1] (Coinbase): New killer features. To eliminate lag, high ping, packet loss, and disconnect from your gameplay. Velocity drops in Valorant? Use Traffic Shaper for more aces. FPS drops in Fortnite? Activate FPS boost for more kills. Connection drops in League of Legends? Use Multipath for more wins. Take lag, packet loss, and disconnect to the path. The future of gaming is powered by AI. Head to ExitLag.com and sub now.

[Video Narrator 10]: New killer features. To eliminate lag, high ping, packet loss, and disconnect from your gameplay. Velocity drops in Valorant? Use Traffic Shaper for more aces. FPS drops in Fortnite? Activate FPS boost for more kills. Connection drops in League of Legends? Use Multipath for more wins. Take lag, packet loss, and disconnect to the path. The future of gaming is powered by AI. Head to ExitLag.com and sub now.

So that was fun.

Every post at this point that I do.

Coin so it's not unique like as a one off it's like I'm going to do.

Every post that we had everybody shows.

Alright, this is going to be our last question, Brian So from 449911.

<unk> is aerodrome.

F I integration into clean base going live.

Sure.

Well good news that should start rolling out over the next several weeks and.

Brian Armstrong: Yep. Well, my experience using the Base app so far has been great. I mean, I haven't shared the photo yet, but just in the last few weeks since the app launched, I've been making posts that I've probably earned hundreds of thousands of dollars on the platform. So I mean, my use case might be a little bit of an exception as one of the people involved in it. And by the way, I'm planning to pay all of that back over to future creators in the ecosystem. So to me, it's not necessarily about personally making money on it, but it shows that this magic moment that happened in the app for me, and I think will happen for a lot of other customers, is the first time that you post some piece of content and you start to get notifications on your phone about people buying it.

This is a big part of our push into the everything exchange is we want to have.

Decentralized exchanges integrated directly into the App, it's kind of that defy moelis strategy that we talked about a few times square in the backend it's using <unk> a decentralized exchange in this case, but the customer doesn't really need to know or care about that experience to buy something should look pretty much. The same there'll be various there'll be a small label exposes us.

And you can.

We're big on disclosures, but I think most customers.

Won't have to care about how it's executing underneath they just want the best price the best customer experience. So yeah aerodrome is an amazing you can drive change built on a base and that will be rolling out the next few weeks.

Brian Armstrong: And you're earning money from your content, and it's just arriving into your app. And that's something that a lot of content creators have never experienced before because, first of all, if you don't have a huge audience, you can't really sell ads. It doesn't make sense for these ads and platforms to really go after you if you're not really at massive scale. And then even the ones that are at massive scale, you might have to sell an ad and record this thing, and some wire comes into your account two months later, and some invoice got paid. It's a totally different experience to have real-time response from people who are consuming your content and saying, "Do we like it or not? And why?

And you're earning money from your content, and it's just arriving into your app. And that's something that a lot of content creators have never experienced before because, first of all, if you don't have a huge audience, you can't really sell ads. It doesn't make sense for these ads and platforms to really go after you if you're not really at massive scale. And then even the ones that are at massive scale, you might have to sell an ad and record this thing, and some wire comes into your account two months later, and some invoice got paid. It's a totally different experience to have real-time response from people who are consuming your content and saying, "Do we like it or not? And why?

Awesome well, thanks, everyone for joining us today.

Thank you.

[music].

Yes.

Oh.

Okay.

Brian Armstrong: And do we believe that this person is going to create more good content in the future?" And so they want to make derivative content or remix the content that you've put out and make their own content. And if you discover interesting content and you're the early person to share it, then you can participate in the value chain. So you're more like a curator instead of the original creator, right? So anyway, it's been a very and by the way, the app is still it's in beta, right? So there's a few rough edges. There's things that could be better, but those sparks and those magic moments are already happening. And so it makes me feel like the Base app is really onto something.

And do we believe that this person is going to create more good content in the future?" And so they want to make derivative content or remix the content that you've put out and make their own content. And if you discover interesting content and you're the early person to share it, then you can participate in the value chain. So you're more like a curator instead of the original creator, right? So anyway, it's been a very and by the way, the app is still it's in beta, right? So there's a few rough edges. There's things that could be better, but those sparks and those magic moments are already happening. And so it makes me feel like the Base app is really onto something.

Okay.

Yes.

Okay.

Yes.

Brian Armstrong: I think the question asked about the Base Shake too, which, any of you who don't know, that was the first post I put out there, which was this unintentional, I have to say, awkward moment during the announcement event where I went in for the fist bump, and Jesse Pollak wanted to shake hands. We did the some people call it the gear shifter or whatever. That was a fun, awkward moment. It was totally unplanned, and it's just symbolic of us doing it live and being a little awkward ourselves. I decided to make that the first post on Base because I saw somebody post it, and they suggested it as an idea.

I think the question asked about the Base Shake too, which, any of you who don't know, that was the first post I put out there, which was this unintentional, I have to say, awkward moment during the announcement event where I went in for the fist bump, and Jesse Pollak wanted to shake hands. We did the some people call it the gear shifter or whatever. That was a fun, awkward moment. It was totally unplanned, and it's just symbolic of us doing it live and being a little awkward ourselves. I decided to make that the first post on Base because I saw somebody post it, and they suggested it as an idea.

Brian Armstrong: They're like, "You should coin this as the first." And then I sort of did a throwback to the first post on X that Jack Dorsey did by saying, "Just setting up my base." So that was fun. And every post at this point that I do is a content coin. So it's not unique like it's a one-off. It's like I'm going to do every post that way, and everybody shows.

They're like, "You should coin this as the first." And then I sort of did a throwback to the first post on X that Jack Dorsey did by saying, "Just setting up my base." So that was fun. And every post at this point that I do is a content coin. So it's not unique like it's a one-off. It's like I'm going to do every post that way, and everybody shows.

Alesia Haas: All right. This is going to be our last question, Brian. So from Bor4991, "When is Aerodrome integration into Coinbase going live?

Brian Armstrong: Well, good news. That should start rolling out over the next several weeks. This is a big part of our push into the Everything Exchange is we want to have decentralized exchanges integrated directly into the app. It's kind of that DeFi Mullet strategy that we've talked about a few times where, in the back-end, it's using DeFi or a decentralized exchange in this case, but the customer doesn't really need to know or care about that. The experience to buy something should look pretty much the same. There'll be a small label that discloses this, and you can, we're big on disclosures. I think most customers, they won't have to care about how it's executing underneath. They just want the best price, the best customer experience.

Brian Armstrong: So yep, Aerodrome is an amazing decentralized exchange built on top of Base, and that'll be rolling out in the next few weeks.

So yep, Aerodrome is an amazing decentralized exchange built on top of Base, and that'll be rolling out in the next few weeks.

Alesia Haas: Awesome. Well, thanks everyone for joining us today.

Brian Armstrong: Thank you.

Q2 2025 Coinbase Global Inc Post-Earnings Q&A Call

Request a DemoDemo

COIN

Coinbase

Earnings