Coinbase Global Inc at Morgan Stanley Financials Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Cyprys - Morgan Stanley - Analyst : Now we can actually start talking about things and as we were sort of talking about just as we were walking up here on stage just around the regulatory environment, you were mentioning you're spending a bunch of time in DC. So maybe just setting the stage here with the regulatory backdrop, arguably, doing business as a crypto firm has not been easy over the past couple of years, but seemingly we're moving into a more favorable backdrop today with supportive new administrations. So from your perspective, how are the conversations with regulators today versus a year ago and maybe you can share with us some of the color, anything you might be able to provide on those conversations.

Question: Michael Cyprys - Morgan Stanley - Analyst : Welcome back, I should say. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 10, 2025 / 5:50PM, COIN.OQ - Coinbase Global Inc at Morgan Stanley Financials Conference

Question: Michael Cyprys - Morgan Stanley - Analyst : Great. And that's something we'll come back and talk a little bit about. Maybe just continue on the regulatory theme. The question is what's the unlock that is anticipated from regulatory clarity on the horizon here, and how we just sort of characterize

Question: Michael Cyprys - Morgan Stanley - Analyst : When you mentioned the task force open to no-action relief, experimentation, anything you could share around how you anticipate that playing out? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 10, 2025 / 5:50PM, COIN.OQ - Coinbase Global Inc at Morgan Stanley Financials Conference

Question: Michael Cyprys - Morgan Stanley - Analyst : Okay. And having more regulatory clarity could bring a lot more people to the party?

Question: Michael Cyprys - Morgan Stanley - Analyst : How do you win with additional competition potentially entering the space, and how are you thinking through the pros and cons and moving pieces around that?

Question: Michael Cyprys - Morgan Stanley - Analyst : Great. Maybe just diving into the institutional business that you oversee. Maybe just give us a bit of an overview of your offerings today for institutional clients and how the business has evolved over the years, and what are some of the key pillars of growth as you look forward? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 10, 2025 / 5:50PM, COIN.OQ - Coinbase Global Inc at Morgan Stanley Financials Conference

Question: Michael Cyprys - Morgan Stanley - Analyst : Great. And we'll come back on some of those different product areas you mentioned. Over the past couple of years, the markets have digested a number of bad actors, some regulatory developments, crypto winter, and now a bull run, along with the introduction of ETFs along the way. So what's different this time around versus the last big run up that we had. And to that end, what are you observing in terms of institutional behavior and use cases this time?

Question: Michael Cyprys - Morgan Stanley - Analyst : Great. Maybe just turning to your most recent announcement, the acquisition of Deribit last month, a non-US derivative exchange. Can you just give us a little bit of the backstory here on the transaction? What attracted you to this platform? Why did they pursue a sale? Why did they sell at this moment? And talk about your vision and roadmap here. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 10, 2025 / 5:50PM, COIN.OQ - Coinbase Global Inc at Morgan Stanley Financials Conference

Question: Michael Cyprys - Morgan Stanley - Analyst : So the cross margin across your futures and the options, but you probably need to bring it all together.

Question: Michael Cyprys - Morgan Stanley - Analyst : Maybe just talk about how you envision that playing out.

Question: Michael Cyprys - Morgan Stanley - Analyst : Okay. And on the back of that acquisition, maybe talk about your expansion efforts there. Is there a plan to bring Deribit to the US, leverage the platform as you think about scaling internationally, and what might make sense here as you approach that? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 10, 2025 / 5:50PM, COIN.OQ - Coinbase Global Inc at Morgan Stanley Financials Conference

Question: Michael Cyprys - Morgan Stanley - Analyst : Great. And with derivatives in focus, could we talk about your product set today of derivative offerings that you have? What's available to each customer set, and how does the consumer demand compared to what you're seeing on the institutional side in terms of demand for these derivative products?

Question: Michael Cyprys - Morgan Stanley - Analyst : Great. And with that, when we talk about the ecosystem, the competitive landscape for derivatives today, just curious to get your take on futures, options, ETFs, how do you see the derivative complex evolving from here? What are some of the biggest opportunities as you look out?

Question: Michael Cyprys - Morgan Stanley - Analyst : And so you don't have futures -- or, sorry, you don't have options today.

Question: Michael Cyprys - Morgan Stanley - Analyst : Where is that on the roadmap now that Deribit, you get it internationally. How easy is it to, let's say, to bring that liquidity pool over to the US?

Question: Michael Cyprys - Morgan Stanley - Analyst : Sure. With multiple crypto ETFs now starting up over the past year or so, you guys have taken on a custodial role here for a vast majority of these assets. So what is Coinbase doing to support the ETF world and the ecosystem and the players there?

Question: Michael Cyprys - Morgan Stanley - Analyst : And with banks now being able to hold crypto assets on the balance sheet, I guess how does Coinbase stay competitive as a custodian to these assets? And what sort of challenges or opportunities do you see from an institutional standpoint?

Question: Michael Cyprys - Morgan Stanley - Analyst : Okay. Why don't we shift and talk about USDC for you guys on the institutional side. Talk about what you're seeing from the institutional client set in terms of the usage of USDC, particularly as they are looking to gain rewards for holding that. What are you seeing on this part of the business?

Question: Michael Cyprys - Morgan Stanley - Analyst : Great. I think we'll have some time to take some audience questions in just a moment, but maybe just shifting to a little bit more about your perspective on things over time, right. Through the arc of your career, right, you've seen equities, you've seen other asset classes go through a lot of different transitions, transformations, just given your varied roles over the years. With that perspective, I guess, how does the relative maturity of crypto as an asset class compared to what you have seen in other more traditional asset classes? How do you see the crypto market structure evolving from here, and what lessons should we take away?

Question: Michael Cyprys - Morgan Stanley - Analyst : I wanted to come back on the derivative side. You did mention perpetuals. I wanted to ask around how that product looks overseas and compares versus the derivatives that we see in the US. And if you think about ultimately trying to bring perpetuals to the US, what might that look like?

Question: Michael Cyprys - Morgan Stanley - Analyst : And by long dated, would it be more than a year --

Question: Michael Cyprys - Morgan Stanley - Analyst : 5, 10. Okay, quite long duration. Okay, interesting. Well, we'll stay tuned on that.

Question: Michael Cyprys - Morgan Stanley - Analyst : Super. Any questions in the room? Right over here. There we go. Unidentified Participant I'm curious, your reaction to the Circle IPO. I think it's like a 30-year market cap now and obviously you guys are inextricably linked. What do you think the market's getting excited about from a stablecoin perspective and how do you think you're kind of best positioned to capitalize on that?

Question: Michael Cyprys - Morgan Stanley - Analyst : There was a question up here. Unidentified Participant Can you talk a little about the evolution of the safety of custody? Now that we're with the banks, you guys are preeminent obviously, but it behooves you to share your technology, so there's no other accidents, I guess, or whatever you want to frame it. But just sort of curious, as we do scale into these numbers, how do you think about the custody, the security around it, both physical and I guess the digital custody or whatever (inaudible) just how does that evolve to? Thanks.

Question: Michael Cyprys - Morgan Stanley - Analyst : Other questions in the room? I'm going to keep going, but I'll come back to you guys. If you can give us a little bit about flavor of the types of institutional customers that you have today, how penetrated would you say you are relative to the opportunity set and where are you having some of the most traction versus least?

Question: Michael Cyprys - Morgan Stanley - Analyst : So you said, the most decent was endowment and pension?

Question: Michael Cyprys - Morgan Stanley - Analyst : Got it. Okay. I want to come back on the derivative side. We were talking about perpetuals, bringing that to the US. You have some futures already here. You mentioned CME as a competitor. Just curious how you view your products differing from others, whether it's CME, others in the marketplace.

Question: Michael Cyprys - Morgan Stanley - Analyst : Great. Final question, just wrapping up here, what would you say are some of the biggest priorities for the institutional business at Coinbase this year in '25 and as you're thinking about operating the business through cycles as well?

Question: Michael Cyprys - Morgan Stanley - Analyst : Great. I'm afraid I'll have to leave it there. Thank you very much.