Coinbase Global Inc at Oppenheimer Technology, Internet & Communications Conference (Virtual) Transcript

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

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : So first of all, Alesia on the most recent earnings call. Brian said Coinbase now an all where the company. Can you talk about the journey to get here?

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : Got it. So in terms of adoption, how would you characterize where we are in the digital asset adoption cycle. What are the potential catalysts that can drive increased adoption from here?

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : Got it. So the market sentiment has changed quite a bit quite substantially over the past few weeks. And the market is expecting, I think, more interest rate and maybe more interest rate cut sooner rather than later. Can you please talk about where you have the largest interest rate exposure and how you're thinking about second half of 2024 and maybe potentially going into 2025?

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : Got it. So I think that's a good bridge to the product type questions. Maybe let's start with USDC. So you talk about you have to grow the USDC market cap, what does it take for USDC kind of to take over USDT to become like we're the number one stablecoin in the world in terms of market cap and how can Coinbase help with this journey and to drive the growth and expansion of USDC use cases as well on top of market cap.

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : Got it. So you mentioned base couple of times already. Why don't we step back and talk about how do you view the long-term potential of base? I mean, I would note that revenue was quite volatile quarter over quarter, but could you please talk about the projects and usage trends you have seen so far?

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : Got it. So another expansion area is of Coinbase is international. So you reported results two weeks ago, you plan to make additional investments to support product and international expansion. Could you please unpack a little bit more on the limitation you have today in Europe versus what you can do after you get all the approvals like you just talk about Mika? And how should investors think about the incremental opportunity in Europe when you have all the registration or so-called license approved?

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : Got it. So maybe rational back to the US market. Now when I track your volume, your US derivative volume has been increasing quite a lot since your launch. What are the potential next steps Coinbase can do to drive higher usage and adoption with CME platform?

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : Got it. So another common question we got was about capital allocation. You have a pretty strong balance sheet, a lot of cash from debt. Could you please talk about your appetite for like using this cash to expand your prime financing business. Is there a kind of a limit in place you have it looks like some other traffic companies have started to come into this space. How do you see the value proposition for Coinbase going forward?

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : Our M&A appetite and gap you want to feel any comment on that?

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : Got it. So let's turn to our attention to the regulatory front, which is a big thing and big theme for crypto for a long time. A Coinbase has an ongoing lawsuit with the SEC. Could you please unpack for us where you are in the process and the next steps and the timing of it.

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : Yeah. So we will talk about that and maybe some of the build-up in the next the questions. But before that, can you talk about an interesting thing going on, which is like crypto looks I has emerged as a mainstream policy issue for the upcoming US elections in a way that it has not been seen like in power elections or maybe even like few months ago. So what happened here and why do you think there has been such a big focus on crypto at this cycle and even right now?

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : Interesting. And then another interesting theme going on with the market with crypto. It just looks like some house democrats tried to reset the crypto stands for the party. And it just appears to us that Vice President Harris has shown willingness to change that stands as well. I mean, do you think we are getting closer to the situation there by regardless of the election outcome? There will be more forward-looking regulations for the industry.

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : Got it. So going back to your earlier comment, I do want to dive a little bit deeper on the builds going on in the house. There are two builds market structure bill 21 and also stable coin bill, how do you think these two bills will play out? When do you think you can pass the Congress? You know, it's more likely a 2025 thing?

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : Got it. So I think we have a few minutes left on Alesia. Any final words for us, how would you tell like people was still kind of hesitated about the space or maybe Coinbase as a long-term investment. Any final words for us.

Question: Owen Lau - Oppenheimer & Co. Inc - Analyst : Yeah, lot of things going on, I guess thank you very much, Alesia, thank you for your time. Really appreciate it.