Coinbase Global Inc (COIN) 2023 Q3 法說會逐字稿

Good afternoon. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coinbase Third Quarter 2023 Earnings Call. (Operator Instructions)

午安.我叫莎拉，今天我將擔任你們的會議操作員。此時，我歡迎大家參加 Coinbase 2023 年第三季財報電話會議。 （操作員說明）

Anil Gupta, Vice President, Investor Relations, you may begin your conference.

阿尼爾古普塔（Anil Gupta），投資者關係副總裁，您可以開始會議了。

Good afternoon, and welcome to the Coinbase Third Quarter 2023 Earnings Call. Joining me on today's call are Brian Armstrong, Co-Founder and CEO; Emilie Choi, President and COO; Alesia Haas, CFO; and Paul Grewal, Chief Legal Officer. I hope you've all had the opportunity to read our shareholder letter, which was published earlier today on our Investor Relations website.

下午好，歡迎參加 Coinbase 2023 年第三季財報電話會議。與我一起參加今天電話會議的還有共同創辦人兼執行長布萊恩‧阿姆斯壯 (Brian Armstrong)；蔡艾米莉，總裁兼營運長；阿萊西亞·哈斯，財務長；和首席法律官 Paul Grewal。我希望你們都有機會閱讀今天早些時候在我們的投資者關係網站上發布的我們的股東信。

Before we get started, I'd like to remind you that during today's call, we may make forward-looking statements. Actual results may vary materially from today's statements. Information concerning risks, uncertainties and other factors that could cause these results to differ is included in our SEC filings. Our discussion today will also include references to certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in our shareholder letter on our IR website. Non-GAAP financial measures should be considered in addition to, not as a substitute for GAAP measures. We are once again using safe technologies to enable our shareholders to post questions. In addition, we'll take some live questions from our research analysts.

在我們開始之前，我想提醒您，在今天的電話會議中，我們可能會做出前瞻性陳述。實際結果可能與今天的聲明有重大差異。有關風險、不確定性和其他可能導致這些結果出現差異的因素的資訊包含在我們向 SEC 提交的文件中。我們今天的討論也將涉及某些非公認會計準則財務指標。我們的 IR 網站上的股東信中提供了與最直接可比較的 GAAP 財務指標的調整表。非公認會計原則財務指標應被視為公認會計原則指標的補充，而不是取代公認會計原則指標。我們再次使用安全技術讓我們的股東能夠提出問題。此外，我們還將回答研究分析師的一些即時問題。

And with that, I'll turn it over to Brian and Alesia for opening comments.

接下來，我將把它交給 Brian 和 Alesia 徵求開場評論。

Thanks, Anil. Let me start with the provocative statement. On chain is the new online. The Internet was and is a game-changing technology that redefined our modes of communication, business and social interaction. It broke down barriers, democratized access to information and made knowledge universally accessible. Blockchain and crypto are doing the same thing today with a re-decentralization of the web and the introduction of a new building block ownership. Instead of just reading and writing on the traditional Internet on-chain, you can now read write and own. On chain is about digital assets, broader access to financial services and even changes how we think about identity, governance, artwork and nonfinancial services.

謝謝，阿尼爾。讓我從挑釁性的言論開始。鏈上就是新的線上。網路過去和現在都是一項改變遊戲規則的技術，它重新定義了我們的溝通、商業和社交互動模式。它打破了障礙，使資訊獲取民主化，並使知識普及。如今，區塊鏈和加密貨幣正在做同樣的事情，即重新分散網路並引入新的構建塊所有權。現在你不再只是在傳統的網路鏈上讀寫，而是可以讀寫和擁有。鏈上涉及數位資產、更廣泛地獲得金融服務，甚至改變我們對身分、治理、藝術品和非金融服務的看法。

Crypto leverages -- crypto creates a level playing field where everyone, irrespective of their socioeconomic status or geographic location has access to more robust and transparent systems. Crypto creates a world with fewer middlemen, lower fees, faster transaction speeds and greater protection and control over one's digital assets and identity. It is for all of these reasons that we believe that crypto is the greatest tool in increasing global economic freedom. We also think that on-chain will be as essential and impactful as the Internet is today. If we look back to the early years of the Internet, the companies that ignored the noise and built for the future of the Internet now stand as tech giants. The on-chain companies of today will be the tech giants of tomorrow. Coinbase stands at the forefront of this technology and continues to build a responsible, compliant, trusted, financially strong and innovative business that is building those linchpins products.

加密槓桿－加密創造了一個公平的競爭環境，每個人，無論其社會經濟地位或地理位置如何，都可以使用更強大和透明的系統。加密貨幣創造了一個中間商更少、費用更低、交易速度更快、對數位資產和身分得到更好保護和控制的世界。正是由於所有這些原因，我們相信加密貨幣是增加全球經濟自由的最佳工具。我們也認為鏈上將像今天的互聯網一樣重要和有影響力。如果我們回顧網路的早年，那些無視噪音、為網路未來而建立的公司現在已成為科技巨頭。今天的鏈上公司將成為明天的科技巨頭。 Coinbase 站在這項技術的最前沿，並繼續打造​​一家負責任、合規、值得信賴、財務實力雄厚且創新的企業，打造這些關鍵產品。

Speaking of financial strength, Q3 has been another strong quarter for us. In Q3, we delivered positive adjusted EBITDA for the third consecutive quarter and demonstrated continued operational discipline. In fact, we're on track to deliver meaningful positive adjusted EBITDA this year, which reflects the direction we set at the start of this year to be a company that can generate adjusted EBITDA in all market conditions. We thought it may take us more time to get here, but through operational discipline, rigorous cost management and more favorable interest rates, I'm very pleased with the results we've delivered. Our balance sheet remains strong and our financial position enables us to continue to invest in the future and deliver products and services that expand the utility of crypto, which brings me to what we've built this quarter.

說到財務實力，第三季對我們來說又是一個強勁的季度。在第三季度，我們連續第三個季度實現了正向調整 EBITDA，並展現了持續的營運紀律。事實上，我們今年有望實現有意義的正調整 EBITDA，這反映了我們在今年年初設定的方向，即成為一家能夠在所有市場條件下產生調整後 EBITDA 的公司。我們認為可能需要更多時間才能達到這一目標，但透過營運紀律、嚴格的成本管理和更優惠的利率，我對我們所交付的結果感到非常滿意。我們的資產負債表仍然強勁，我們的財務狀況使我們能夠繼續投資未來並提供擴大加密貨幣效用的產品和服務，這讓我了解了我們本季所建立的東西。

We've obtained licenses that enable us to access new markets, continued to drive toward regulatory clarity for crypto and build innovative products that expand the utility for crypto. This continues to be a year of international progress for Coinbase, starting with international expansion here. In 2023, we officially launched 3 key go-deep markets. Brazil, Singapore and this quarter in Canada. Country launches are a significant investment for Coinbase. When we launch in a country, we hire local leadership, we work with local regulators and we establish new payment rails to enable seamless fiat crypto transfers. In Q3, we also obtained key licenses or registrations in Singapore and Spain and continue to pursue and obtain licenses and registrations where it's clear that we need them to serve our customers.

我們已經獲得了許可證，使我們能夠進入新市場，繼續推動加密貨幣監管的明確性，並建立創新產品來擴展加密貨幣的實用性。今年仍然是 Coinbase 國際進步的一年，首先是國際擴張。 2023年，我們正式啟動了3個重點深耕市場。巴西、新加坡和本季在加拿大。國家的推出是 Coinbase 的一項重大投資。當我們在一個國家/地區推出時，我們會聘請當地領導層，與當地監管機構合作，並建立新的支付管道以實現無縫的法定加密貨幣轉帳。在第三季度，我們還在新加坡和西班牙獲得了關鍵許可證或註冊，並繼續尋求並獲得顯然需要它們來為我們的客戶提供服務的許可證和註冊。

Speaking of licenses, let's talk about derivatives. Unlocking the ability to offer derivatives products to users is a huge opportunity for Coinbase as the global derivatives market for crypto represents 75% of all trading volumes. Trading volume that up until now was largely going through unregulated offshore exchanges. Derivatives products are an important tool as the ability to trade crypto using margin, essentially giving traders the ability to use margin increases their capital efficiency and access to the crypto market less upfront investment.

說到許可證，我們來談談衍生性商品。解鎖向用戶提供衍生性商品的能力對於 Coinbase 來說是一個巨大的機會，因為全球加密貨幣衍生性商品市場佔所有交易量的 75%。到目前為止，交易量主要透過不受監管的離岸交易所進行。衍生性商品產品是一種重要的工具，因為能夠使用保證金進行加密貨幣交易，本質上使交易者能夠使用保證金來提高其資本效率，並減少前期投資進入加密貨幣市場。

In Q3, Coinbase International Exchange received regulatory approval from the Bermuda Monetary Authority to enable perpetual futures for eligible non-U.S. retail customers, which we began offering just last month. And Coinbase Financial Markets also received regulatory approval from the National Futures Association to offer futures to eligible U.S. customers via advanced trading.

第三季度，Coinbase 國際交易所獲得了百慕達金融管理局的監管批准，可為符合條件的非美國零售客戶提供永續期貨，我們上個月才開始提供這種服務。 Coinbase Financial Markets 也獲得了美國國家期貨協會的監管批准，可以透過高級交易向符合條件的美國客戶提供期貨。

And as of yesterday, we now offer regulated futures to U.S. customers via Coinbase financial markets. Customers seek to do business with trusted counterparties when they trade complex, levered products such as derivatives and perpetual futures. And Coinbase Financial Markets and Coinbase International Exchange are best positioned to be that trusted partner. We're just getting started and plan to roll out additional products and expand to more markets over time with derivatives.

截至昨天，我們現在透過 Coinbase 金融市場向美國客戶提供受監管的期貨。客戶在交易衍生性商品和永續期貨等複雜的槓桿產品時，尋求與值得信賴的交易對手開展業務。 Coinbase Financial Markets 和 Coinbase International Exchange 最有資格成為值得信賴的合作夥伴。我們才剛開始，並計劃推出更多產品，並隨著時間的推移透過衍生性商品擴展到更多市場。

Speaking of launching new products, in Q3, we launched our new Layer 2 solution called Base. As I touched on last quarter, most blockchain transactions today are happening on what are called Layer 1 and Layer 1 networks are slow, they're inefficient and expensive to use. Think of the jump from L1s to L2s as the jump that the Internet made when it went from dial-up to broadband. Layer 2s are built on top of Layer 1s to make them faster and more efficient, and they result in lower transaction costs and higher confirmation speeds.

說到推出新產品，在第三季度，我們推出了名為 Base 的新第 2 層解決方案。正如我在上個季度談到的那樣，當今大多數區塊鏈交易都發生在所謂的第 1 層網路上，而第 1 層網路速度緩慢、效率低下且使用成本昂貴。可以將從 L1 到 L2 的跳躍視為網路從撥號到寬頻的跳躍。第 2 層建構在第 1 層之上，使其更快、更有效率，從而降低交易成本並提高確認速度。

Our base platform enables developers to harness the full power efficiency and cost savings of a Layer 2 network with the convenience of it being built in right into the Coinbase ecosystem. In August, we moved Base on to mainnet, which means it's now available to everyone and to celebrate the launch we created an on-chain movement this summer for developers in the crypto community called Onchain Summer. During that campaign, we saw over 10 million NFTs minted across more than 1 million wallets on Base.

我們的基礎平台使開發人員能夠充分利用第 2 層網路的能源效率並節省成本，並方便地將其內建到 Coinbase 生態系統中。 8 月份，我們將 Base 移至主網，這意味著現在每個人都可以使用它，為了慶祝發布，我們今年夏天為加密社區的開發人員創建了一個名為 Onchain Summer 的鏈上運動。在那次活動期間，我們看到 Base 上超過 100 萬個錢包中鑄造了超過 1000 萬個 NFT。

This momentum helped drive rapid growth of Base, including more than $500 million in assets that are now on the platform. While early, we are encouraged by the early utility of Base and are optimistic about the role Layer 2s can play not only for Coinbase but also for the growth and development of the entire crypto economy. Finally, I just want to touch on how Coinbase is driving regulatory clarity for the industry.

這一勢頭推動了 Base 的快速成長，目前平台上的資產已超過 5 億美元。雖然還處於早期階段，但我們對 Base 的早期實用性感到鼓舞，並對 Layer 2 不僅對 Coinbase 而且對整個加密經濟的成長和發展所發揮的作用感到樂觀。最後，我只想談談 Coinbase 如何推動產業監管的明確化。

One of the biggest items holding back adoption of this technology is the lack of clear rules and regulation, most notably in the U.S. We're actively involved in U.S. legislation with a variety of bills that are in development, and we're still confident that the U.S. will get this right, embrace innovation and proposed clear rules. American crypto holders are owed clarity and they are an increasingly expanding voter base.

阻礙這項技術採用的最大因素之一是缺乏明確的規則和監管，尤其是在美國。我們正在積極參與美國立法，並正在製定各種法案，我們仍然有信心美國將正確對待這一點，擁抱創新並提出明確的規則。美國的加密貨幣持有者理應清楚，他們的選民基礎正在不斷擴大。

There are 52 million crypto holders in the United States. To put that into context, that's more than the owners of electric vehicles and more than all collective members of U.S. unions. The American people are embracing crypto as more Americans grow unhappy with the traditional financial system. Only 9% of those surveyed say that they are satisfied with the current U.S. financial system and only 22% of people think that it's better than any other countries. And nearly 2 and 5 younger people, that's 38% say crypto and blockchain can increase economic opportunities for them in ways traditional finance can't.

美國有 5,200 萬加密貨幣持有者。考慮到這一點，這不僅僅是電動車的車主，也不僅僅是美國工會的所有集體成員。隨著越來越多的美國人對傳統金融體系感到不滿，美國人民正在擁抱加密貨幣。只有9%的受訪者表示他們對美國目前的金融體系感到滿意，只有22%的人認為它比其他國家都好。近 2 到 5 名年輕人（即 38%）表示，加密貨幣和區塊鏈可以以傳統金融無法做到的方式增加他們的經濟機會。

To aid in the mission of driving for crypto regulation, Coinbase is a proud supporter of an independent movement known as Stand with Crypto that now has more than 100,000 advocates and continues to stand with the American people to drive towards clarity in the U.S. While the U.S. continues to struggle to keep pace, the rest of the world has made great strides in embracing crypto and on-chain technology with clear legislation. We're seeing global efforts to bring crypto into regulatory scopes as 83% of the G20 nations are adopting crypto regulations.

為了幫助實現推動加密貨幣監管的使命，Coinbase 非常自豪地支持名為「與加密貨幣站在一起」的獨立運動，目前擁有超過10 萬名擁護者，並將繼續與美國人民站在一起，推動美國走向透明。儘管世界其他地區仍在努力跟上步伐，但透過明確的立法，在採用加密貨幣和鏈上技術方面已取得了長足進步。我們看到全球正在努力將加密貨幣納入監管範圍，83% 的 G20 國家正在採用加密貨幣法規。

Most recently, we've seen this with MiCA legislation in Europe, and it's incredibly encouraging to see that now 27 countries stand together with one unified set of rules for crypto, something the U.S. desperately needs. In response to this groundbreaking regulation, Coinbase moved quickly and recently announced that Ireland will be our MiCA hub. We continue to work with regulators around the world on laws for cryptocurrencies and act quickly to embrace new regulation when it's developed.

最近，我們在歐洲的 MiCA 立法中看到了這一點，令人難以置信的是，現在 27 個國家共同製定了一套統一的加密規則，而這正是美國迫切需要的。為了回應這項開創性的法規，Coinbase 迅速採取行動，最近宣布愛爾蘭將成為我們的 MiCA 中心。我們繼續與世界各地的監管機構就加密貨幣法律進行合作，並在新法規制定後迅速採取行動接受新法規。

In conclusion, although we continue to be in a down market with volatility, the lowest we've seen in years, Coinbase is financially healthy with our third consecutive quarter of positive adjusted EBITDA. Meanwhile, we have the most trusted brand and the easiest to use products and continue to build innovative key technologies that expand the utility of crypto and best position Coinbase to take advantage of the next bull market.

總而言之，儘管我們仍然處於波動性低迷的市場，這是多年來的最低水平，但 Coinbase 的財務狀況依然健康，調整後的 EBITDA 已連續第三個季度為正值。同時，我們擁有最值得信賴的品牌和最易於使用的產品，並繼續建立創新的關鍵技術，擴大加密貨幣的效用，並使 Coinbase 處於下一個牛市的最佳位置。

We continue to do the work of running a trusted, secure and compliant crypto platform. And this is our competitive advantage. We have a long-term focus on building and following the rules, which has proven to be the right strategy. We believe on-chain is the new online and the on-chain technology represents the same opportunity that the Internet did before it. With compliant and responsible companies like Coinbase leading the charge, on-chain applications are set to become the foundational pillars of the future financial system and more.

我們將繼續致力於運作一個值得信賴、安全且合規的加密平台。這就是我們的競爭優勢。我們長期致力於制定和遵守規則，事實證明這是正確的策略。我們相信鏈上是新的線上技術，鏈上技術代表著與之前的互聯網相同的機會。在像 Coinbase 這樣合規且負責任的公司的引領下，鏈上應用程式將成為未來金融體係等的基本支柱。

With that, I'll hand it over to you, Alesia to tell us more about our Q3 performance.

接下來，我將把它交給您，Alesia，讓您告訴我們更多有關第三季表現的資訊。

Thanks, Brian, and good afternoon, everyone. As Brian shared, Q3 was a strong quarter where we saw the efforts of multi-quarter initiatives come to fruition. Further, we continue to make progress on building an increasingly efficient and financially disciplined company. Let's dive right into our Q3 results, and I'm going to start with transaction revenue. which was $289 million, down 12% quarter-over-quarter. In Q3, crypto asset volatility, a driver of our trading business continued to decline, and it reached levels that we haven't measured since 2016.

謝謝布萊恩，大家下午好。正如布萊恩分享的那樣，第三季度是一個強勁的季度，我們看到多季度舉措的努力取得了成果。此外，我們在建立一家日益高效、財務紀律日益嚴格的公司方面不斷取得進展。讓我們直接討論第三季的業績，我將從交易收入開始。為 2.89 億美元，季減 12%。第三季度，我們交易業務的驅動因素——加密資產波動性持續下降，達到了 2016 年以來我們從未測量過的水平。

As a result, total Coinbase trading volume declined 17% quarter-over-quarter, which outperformed the global spot market, which declined 24% quarter-over-quarter. The blended average fee for consumer was higher in Q3 as compared to Q2 and was again driven largely by the mix of simple versus advanced trading volume in the quarter. We continue to experiment with our pricing models for both our consumer and institutional products and price changes may impact future quarters, but that was not the case in Q3.

因此，Coinbase 總交易量較上季下降 17%，優於全球現貨市場季減 24% 的表現。與第二季相比，第三季消費者的混合平均費用較高，這主要是由本季簡單交易量與高級交易量的混合所推動的。我們繼續試驗我們的消費者和機構產品的定價模型，價格變化可能會影響未來幾個季度，但第三季度的情況並非如此。

Turning now to subscription and services. Revenue was $334 million, essentially flat quarter-over-quarter. Overall, we saw inflows of native units in custody, we saw an increase in stakes balances, and we saw growth in USDC on our platform. However, offsetting this unit growth were price effects as crypto market cap declined approximately 9% quarter-over-quarter.

現在轉向訂閱和服務。營收為 3.34 億美元，環比基本持平。總體而言，我們看到了託管的本地單位的流入，我們看到了權益餘額的增加，我們看到了我們平台上 USDC 的增長。然而，價格效應抵消了這一單位成長，因為加密貨幣市值環比下降了約 9%。

Now shifting to expenses. Total operating expenses declined 4% quarter-over-quarter to $754 million. Technology and development, general and administrative and sales and marketing were collectively $654 million, down 1% quarter-over-quarter. Expenses did come in at the low end of our outlook driven primarily by a shift in timing of certain legal and marketing expenses from Q3 to Q4. Net loss was $2 million, and adjusted EBITDA was $181 million. Our Q3 net loss benefited from 2 transactions. First, we completed a debt repurchase in the quarter, which had a favorable impact of $82 million. Second, we had a $50 million gain on strategic investments. Both of these items were recorded in our other income. Additionally, in the quarter, we increased evaluation allowance on deferred tax assets, which contributed to the higher tax rate. You can read more about our effective tax rate in our shareholder letter.

現在轉向支出。總營運支出較上季下降 4%，至 7.54 億美元。技術與開發、一般與管理以及銷售與行銷總計 6.54 億美元，季減 1%。費用確實處於我們前景的低端，這主要是由於某些法律和行銷費用的時間從第三季到第四季的轉變。淨虧損為 200 萬美元，調整後 EBITDA 為 1.81 億美元。我們第三季的淨虧損受益於 2 筆交易。首先，我們在本季完成了債務回購，產生了 8,200 萬美元的有利影響。其次，我們透過策略性投資獲得了 5,000 萬美元的收益。這兩項都記錄在我們的其他收入中。此外，本季我們增加了遞延所得稅資產的評估備抵，這導致了稅率的上升。您可以在我們的股東信中詳細了解我們的有效稅率。

Now I'd like to turn to our outlook for the fourth quarter. In our letter, we noted that October transaction revenue was approximately $105 million. We're expecting subscription and services revenue to be approximately flat with the Q3 levels and this assumes no material change to crypto asset prices or market conditions as compared to the month of October. In terms of expenses, we expect technology and development and general and administrative to be between $525 million and $575 million, which is lower compared to the Q3 levels. A key driver of this decrease quarter-over-quarter is lower stock-based compensation in Q4 as compared to Q3, which as we have previously shared, has a nonlinear expense recognition timing.

現在我想談談我們對第四季的展望。我們在信中指出，10 月份的交易收入約為 1.05 億美元。我們預計訂閱和服務收入將與第三季的水平大致持平，並假設與 10 月相比，加密資產價格或市場狀況沒有重大變化。就支出而言，我們預計技術和開發以及一般和管理費用將在 5.25 億美元至 5.75 億美元之間，低於第三季的水平。造成環比下降的一個關鍵驅動因素是第四季度的股票薪酬低於第三季度，正如我們之前所分享的，第三季度的費用確認時間是非線性的。

We're expecting sales and marketing expenses to be between $85 million and $95 million, slightly higher than Q3 levels due to the shift in timing from Q3 to Q4 for certain expenses that I noted earlier. Just as I noted that Q4 is lower than Q3 for SEC, when we look ahead to Q1 of 2024, SEC will be sequentially higher than Q4. As Brian mentioned, we expect to deliver meaningful adjusted EBITDA in 2023, which I want to note is an improvement from our prior goal of just improving adjusted EBITDA in 2023 as compared to 2022 on an absolute basis.

我們預計銷售和行銷費用將在 8500 萬美元至 9500 萬美元之間，略高於第三季度的水平，因為我之前提到的某些費用的時間從第三季度轉移到了第四季度。正如我指出的那樣，SEC 的第四季度低於第三季度，當我們展望 2024 年第一季時，SEC 將依次高於第四季。正如布萊恩所提到的，我們預計在 2023 年實現有意義的調整後 EBITDA，我想指出的是，我們先前的目標是在 2023 年與 2022 年相比，在絕對基礎上提高調整後 EBITDA。

To close, Q3 was a strong quarter for the business despite the low volatility environment. We're pleased with the revenue performance as well as our ability to grow our USDC resources while opportunistically reducing our total debt. As we look ahead towards next year, we see a wide variety of positive catalysts for the crypto industry on the horizon as well as potential risks. We're closely monitoring these inputs as we plan for the coming year, and we will share more with you next quarter.

截至結束時，儘管波動性較低，但第三季的業務表現依然強勁。我們對收入表現以及增加 USDC 資源同時機會減少總債務的能力感到滿意。展望明年，我們看到加密貨幣產業即將出現的各種積極催化劑以及潛在風險。在製定來年計畫時，我們正在密切關注這些投入，並將在下個季度與您分享更多資訊。

Thank you both. So with that, let's turn to shareholder questions.

謝謝你們倆。那麼，讓我們轉向股東問題。

We're taking the most upvoted questions as determined by the number of shares, and we might combine questions that touch on the same themes. First question is, will Coinbase consider reducing transaction fees to make them more competitive with other platforms where ETFs are being traded at significantly lower prices. Emilie?

我們將根據分享數量確定投票最多的問題，並且我們可能會合併涉及相同主題的問題。第一個問題是，Coinbase 是否會考慮降低交易費用，以使其與其他 ETF 交易價格大幅降低的平台相比更具競爭力。艾米麗？

Sure. Thanks for the question. So to answer it directly, we have no current plans to reduce transaction fees because of ETFs. If you just zoom out a little bit, Spot ETF should be a positive catalyst for the entire crypto space. They should add credibility to the market, and we should see increased liquidity and market stability as we've seen with other asset classes such as gold. ETFs should expand the pie and bring new people and institutions into the crypto economy. One stat that I find really powerful is that 52 million Americans own crypto today despite the current regulatory overhang. So imagine what will happen once ETFs are introduced and widely available. RIAs, retirement funds, other institutions that have been precluded from this asset class historically will gain access to crypto for the first time, and that's very powerful.

當然。謝謝你的提問。因此，直接回答這個問題，我們目前沒有計劃因為 ETF 而降低交易費用。如果你稍微縮小一點，現貨 ETF 應該是整個加密貨幣領域的積極催化劑。它們應該會增加市場的可信度，我們應該會看到流動性的增加和市場的穩定性，就像我們在黃金等其他資產類別中看到的那樣。 ETF 應該擴大蛋糕，讓新的人和機構進入加密經濟。我發現一項非常有力的統計數據是，儘管目前存在監管障礙，但如今仍有 5,200 萬美國人擁有加密貨幣。因此，想像一下一旦 ETF 被引入並廣泛使用將會發生什麼。 RIA、退休基金和其他歷史上被排除在這個資產類別之外的機構將首次獲得加密貨幣，這是非常強大的。

In terms of economic impact, as we said before, the primary way that we'll monetize ETFs directly in the near term is through custody fees. And Coinbase is very proud to have been selected to partner with the majority of the potential issuers who are among the world's most trusted financial institutions. Over time, we think there will be other ways to monetize, but that's too early to get into those now. And we also believe that the approval of these products will renew interest in crypto generally and that we would benefit from increased demand and trading volume as a result. Operationally, we are set and ready to go. And once approval arrives, we are ready to hit the ground running.

就經濟影響而言，正如我們之前所說，我們近期直接將 ETF 貨幣化的主要方式是透過託管費用。 Coinbase 非常自豪能夠被選為與全球最值得信賴的金融機構中的大多數潛在發行人合作。隨著時間的推移，我們認為還會有其他的獲利方式，但現在討論這些還為時過早。我們也相信，這些產品的批准將重新燃起人們對加密貨幣的興趣，我們將受益於需求和交易量的增加。在操作上，我們已經準備就緒，可以出發了。一旦獲得批准，我們就準備好立即採取行動。

Second question, when do you see Coinbase with positive earnings per share, Alesia?

第二個問題，Alesia，你什麼時候會看到 Coinbase 每股盈餘為正？

Let's dial back. Looking back the last several years, we were actually net income positive in 2021 in the midst of a bull market. That changed in 2022 as the market turned. We are in a nascent industry, and what we like to do here at Coinbase is we balance our investment in growth, in product innovation and profitability. You may recall that we pivoted in the middle of last year to evolve from a company that's profitable through a cycle to one that can generate positive adjusted EBITDA in all market conditions. And that was a very deliberate shift in our strategy.

讓我們回撥一下。回顧過去幾年，我們在牛市中的2021年實際上淨利潤為正。隨著市場的轉變，這種情況在 2022 年發生了變化。我們處於一個新興產業，我們在 Coinbase 喜歡做的是平衡對成長、產品創新和獲利能力的投資。您可能還記得，我們​​在去年年中進行了轉型，從一家在整個週期內盈利的公司發展成為一家在所有市場條件下都能產生正調整 EBITDA 的公司。這是我們策略上經過深思熟慮的轉變。

We are focused on that as our goal at this time, generating positive adjusted EBITDA in all market conditions. And year-to-date, we've made significant progress towards that goal. You've noted that this is the third consecutive quarter that we've had positive adjusted EBITDA this year. And all of those were in excess of $100 million. And as we said earlier in this call, we are on track this year to deliver meaningful positive adjusted EBITDA in 2023. And all of this is in a down market at a level of multiyear low levels of volatility.

我們目前的目標是在所有市場條件下產生正的調整後 EBITDA。今年迄今為止，我們在實現這一目標方面取得了重大進展。您已經注意到，這是我們今年連續第三季調整後 EBITDA 為正值。所有這些都超過 1 億美元。正如我們早些時候在本次電話會議中所說，我們今年預計在 2023 年實現有意義的正調整 EBITDA。而所有這一切都是在市場低迷、波動水平處於多年低水平的情況下實現的。

As a result, we believe we have a strong position to enable us to continue to invest in the future in our strategy to bring new product innovation to the market during this challenging point in the crypto market cycle. We have a strong balance sheet with over $5 billion in U.S. resources to strength -- and we further strengthen the balance sheet this year as we repurchase debt. And so with that, that is our focus. Adjusted EBITDA, investing in the future in trusted products and services to expand the utility of crypto.

因此，我們相信我們擁有強大的地位，使我們能夠繼續投資未來的策略，在加密貨幣市場週期的這一挑戰時期為市場帶來新產品創新。我們擁有強大的資產負債表，擁有超過 50 億美元的美國資源，今年我們將透過回購債務進一步強化資產負債表。因此，這就是我們的重點。調整後的 EBITDA，投資未來值得信賴的產品和服務，以擴大加密貨幣的效用。

Next question. How is Coinbase handling and preparing for the challenges around the IRS proposed regulations on reporting of digital assets? Alesia?

下一個問題。 Coinbase 如何應對和準備應對 IRS 擬議的數位資產報告法規帶來的挑戰？阿萊西亞？

Well, this is a great question, and we're spending a lot of time working on this internally. So I'm glad we have a chance to highlight some of the work here. First, I want to share some background for those who are unfamiliar with the proposed regulations. The IRS recently proposed rules that would require Coinbase and other crypto platforms to report every crypto transaction of our U.S. customers. When I say every transaction, that includes those on chain transactions related to payments, NFTs, everyday applications. For example, using crypto to buy a cup of coffee becomes a reportable transaction.

嗯，這是一個很好的問題，我們在內部花了很多時間來解決這個問題。所以我很高興我們有機會在這裡重點介紹一些工作。首先，我想為那些不熟悉擬議法規的人分享一些背景知識。美國國稅局 (IRS) 最近提出了規則，要求 Coinbase 和其他加密貨幣平台報告我們美國客戶的每筆加密交易。當我說每筆交易時，包括與支付、NFT、日常應用相關的鏈上交易。例如，使用加密貨幣購買一杯咖啡就成為一項應報告的交易。

This means for Coinbase alone, we could be required to report billions of transactions to the IRS each year. The IRS has admitted that it will receive 8 billion reports. That is more than all current tax reporting combined. This creates a huge compliance burden for us, for the industry. And importantly here, it threatens our customers' privacy and ultimately, we believe, would impede the adoption of crypto. I want to state that we have long supported broker reporting of transactions on our exchange on par with the reporting requirements for traditional finance. But we believe these proposed rules are unworkable and impractical because they reach far beyond that objective.

這意味著僅對 Coinbase 來說，我們每年可能需要向 IRS 報告數十億筆交易。 IRS 承認將收到 80 億份報告。這比目前所有稅務報告的總和還要多。這給我們、整個產業帶來了巨大的合規負擔。重要的是，它威脅到我們客戶的隱私，我們相信，最終會阻礙加密貨幣的採用。我想說的是，我們長期以來一直支持經紀商在我們的交易所報告交易，與傳統金融的報告要求保持一致。但我們認為這些擬議的規則不可行且不切實際，因為它們遠遠超出了這一目標。

They set a dangerous precedent for surveillance of nonfinancial transactions and could lead to the invasion of privacy for American people. So we've been very active here. First, we filed a comment letter introducing our concerns and highlighting the challenges raised by the proposed regulations. We are actually preparing a more detailed comment letter to be submitted shortly with further observations and recommendations regarding the proposed regs. We're also preparing oral testimony on our perspective and concerns at an IRS hearing scheduled for November 7. And lastly, we're working with trade associations and peer companies to provide industry-wide perspective. We've made public aware of these proposed rules. We've mobilized Stand with Crypto to encourage public comments to the IRS and proud of seeing tens of thousand comment letters be submitted so far.

它們為監視非金融交易開創了危險的先例，並可能導緻美國人民的隱私受到侵犯。所以我們在這裡非常活躍。首先，我們提交了一封評論信，介紹了我們的擔憂並強調了擬議法規帶來的挑戰。實際上，我們正​​在準備一封更詳細的評論信，很快就會提交，其中包含有關擬議法規的進一步意見和建議。我們也準備在定於 11 月 7 日舉行的 IRS 聽證會上就我們的觀點和擔憂提供口頭證詞。最後，我們正在與行業協會和同行公司合作，提供全行業的觀點。我們已向公眾公佈了這些擬議規則。我們動員了「與加密貨幣站在一起」的活動，鼓勵公眾向美國國稅局發表評論，並為迄今為止收到的數萬封評論信感到自豪。

So while we think these purpose regs went too far and are unworkable, we think a staged approach to broker reporting is the correct path with the realistic targets and effective dates for the industry, and we remain committed towards transparency and working towards this objective.

因此，雖然我們認為這些目的規定太過分且行不通，但我們認為分階段進行經紀人報告的方法是正確的道路，具有現實的目標和行業的有效日期，我們仍然致力於提高透明度並努力實現這一目標。

Thank you. So with that, Sarah, let's switch and take questions from our analysts, please. .

謝謝。那麼，莎拉，讓我們換個方向，回答我們分析師的問題。 。

Your first question comes from the line of Ken Worthington with JPMorgan.

你的第一個問題來自摩根大通的肯‧沃辛頓。

I wanted to dig in further on derivatives. So you got your FCM license and you rolled out derivative trading on your website. I guess, importantly, when does Coinbase start to launch on mobile, and how are you thinking about marketing and growing that? And then more broadly, as we think about derivative growth for Coinbase inside and outside the U.S., how much of a void is there in derivatives given the FTX blow up and the pressure on Binance and how challenging might that volume be to pursue?

我想進一步深入研究衍生性商品。這樣您就獲得了 FCM 許可證，並在您的網站上推出了衍生性商品交易。我想，重要的是，Coinbase 何時開始在行動裝置上推出？您如何考慮行銷和發展？更廣泛地說，當我們考慮Coinbase 在美國境內外的衍生性商品成長時，考慮到FTX 的爆發和幣安面臨的壓力，衍生性商品市場存在多大的空白，以及追求這項交易量的挑戰性有多大？

Yes. Thanks for the question. I can start off. So I think the first part of your question was really about rolling out derivatives on mobile. And while I don't want to give any kind of like launch dates on the call here, you can imagine that's one of several things that we're working on which would improve people's access to it, both for retail and institutions actually. And so there's still lot of work to be done to fully integrate our derivatives products into our other products, both Coinbase Prime and our retail app.

是的。謝謝你的提問。我可以開始了所以我認為你問題的第一部分實際上是關於在行動裝置上推出衍生性商品。雖然我不想在電話會議上透露任何類似的發布日期，但你可以想像這是我們正在努力的幾件事之一，這將改善人們對它的訪問，實際上無論是零售業還是機構業。因此，要將我們的衍生性商品完全整合到我們的其他產品（Coinbase Prime 和我們的零售應用程式）中，還有很多工作要做。

I do think that we have a big opportunity to essentially go out and provide some trusted infrastructure around this. As I mentioned in the opening statements, people really care about their counterparties in this market. And I do think Coinbase has the best reputation out there in terms of being trusted and we can be an important player by providing this infrastructure in a way that's regulated and compliant and has our long track record of cybersecurity, for instance.

我確實認為我們有一個很大的機會可以走出去並圍繞此提供一些值得信賴的基礎設施。正如我在開場白中提到的，人們真的很關心這個市場上的交易對手。我確實認為 Coinbase 在值得信賴方面擁有最好的聲譽，例如，透過以受監管和合規的方式提供此基礎設施，並擁有長期的網路安全記錄，我們可以成為重要的參與者。

Just a few pieces of data that we haven't shared, I think, before. So we've done about $10 billion in notional volume in Q3 on derivatives, which is -- that sounds like a big number, but in the derivative space, it's actually -- it's a good start, but it's still relatively small. We've also been really increasing the number of institutions we've been onboarding. So in Q3, we now have over 100 institutions that have been onboarded. So with our launches that we talked about, we've got a lot of work in front of us, but we're making really good progress on that. And I can't really predict what percentage of the derivatives market would come over. But I know it's important for the space to have trusted infrastructure, and that's what we're going to go build.

我想，這只是我們之前沒有分享過的一些數據。因此，我們在第三季的衍生性商品名目交易量約為 100 億美元，這聽起來是一個很大的數字，但在衍生性商品領域，它實際上是一個良好的開端，但仍然相對較小。我們也確實增加了我們已加入的機構數量。因此，在第三季度，我們已有 100 多家機構加入。因此，隨著我們所討論的發布，我們面前還有很多工作要做，但我們在這方面取得了非常好的進展。我無法真正預測衍生性商品市場的佔比會達到多少。但我知道擁有值得信賴的基礎設施對於該領域來說非常重要，這就是我們將要建立的基礎設施。

Your next question comes from the line of Devin Ryan with JMP Securities.

您的下一個問題來自 JMP 證券的 Devin Ryan。

Just want to talk a little bit about Base and the adoption that you're seeing. You guys gave a few stats there. It sounds like off to a really good start. So just maybe want to talk about what you guys think are going to be some of the biggest applications that are going to be on Base? What makes it attractive relative to other Layer 2s? Just Coinbase as this starts to become hopefully a bigger contributor for you, how should we think about kind of the ability to monetize and also just geography where kind of that shows up?

只是想談談 Base 以及您所看到的採用情況。你們在那裡提供了一些統計數據。聽起來這是一個非常好的開始。那麼也許想談談你們認為 Base 上將出現的一些最大的應用程式是什麼？相對於其他 Layer 2，它有何吸引力？只是 Coinbase，因為這有望成為你的更大貢獻者，我們應該如何考慮貨幣化能力以及這種能力出現的地理位置？

Yes. So I can start off with some of the applications, then I'll turn it over to Alesia to talk about monetization. So look, I think if anybody was sitting there kind of when broadband was first introduced on the Internet, and they tried to predict what the use cases would be, there's probably some good video clips, we can go back and look at people predicting that. And I'm sure they look a little bit silly because it would have been hard to predict Uber and Netflix and all these kind of things that were enabled.

是的。所以我可以從一些應用程式開始，然後我將把它交給 Alesia 來討論貨幣化。所以看，我認為當寬頻首次在互聯網上引入時，如果有人坐在那裡，他們試圖預測用例是什麼，可能會有一些很好的視頻剪輯，我們可以回去看看人們的預測。我確信它們看起來有點傻，因為很難預測 Uber 和 Netflix 以及所有這些啟用的東西。

So there's a little bit -- I don't want to make any kind of firm predictions here, but I can definitely say that one area we're excited about is payments, for instance, just because if you think about -- on Layer 1 today, if it costs between $1 and $15 or so to make a transaction, and it takes anywhere from minutes to an hour to confirm, that could be serving these use cases around trading because people don't necessarily do trading every second. They might need to do it periodically. And so L1 has served use cases like trading well.

所以有一點 - 我不想在這裡做出任何形式的明確預測，但我可以肯定地說，我們感到興奮的一個領域是支付，例如，只是因為如果你考慮一下 - 在 Layer 上1 今天，如果進行一筆交易的成本在1 美元到15 美元左右，並且確認時間從幾分鐘到一個小時不等，那麼這可能會為這些圍繞交易的用例提供服務，因為人們不一定每秒鐘都進行交易。他們可能需要定期這樣做。因此，L1 已經服務於良好交易等用例。

But if you're trying to build a global payment network, it really benefits everyone to have that happen fast and cheap. So for instance, if you're at a merchant and you hit send, you want the kind of confirmation to show up ideally within a few seconds. You don't want to be sitting and waiting around for 20 minutes or something like that. So payments -- and by the way, payments could mean a whole variety of things, right? It could mean sort of commerce type applications, it could mean peer to peer, it could mean B2B, it could mean remittance, it could mean payments in third-party applications that are like these new types of gaps that are being created.

但如果你想建立一個全球支付網絡，那麼快速且便宜地實現這一目標確實會讓每個人受益。舉例來說，如果您在商家點擊“發送”，您希望這種確認訊息能夠在幾秒鐘內理想地顯示出來。您不想坐著等待 20 分鐘或類似的事情。那麼支付——順便說一句，支付可能意味著各種各樣的事情，對吧？它可能意味著某種商業類型的應用程序，它可能意味著點對點，它可能意味著B2B，它可能意味著匯款，它可能意味著第三方應用程式中的支付，就像正在創建的這些新型差距一樣。

So I made this analogy at one point in the past, but what we saw the friction was reduced from sending a text message to sending a WhatsApp message went from like $0.25 to send a text message to being free on WhatsApp, we saw in order of magnitude more messages sent every day. And I think if you bring down the friction of payments or transactions on these Layer 2s, you could see an order of magnitude more transactions happening on these chains.

所以我過去曾做過這樣的類比，但我們看到，從發送短信到發送 WhatsApp 訊息，摩擦減少了，從發送短信 0.25 美元到 WhatsApp 上免費，我們看到的順序是每天發送的訊息數量增加。我認為，如果你減少這些第 2 層上的支付或交易摩擦，你可能會看到這些鏈上發生的交易數量會增加一個數量級。

Now we don't know exactly all of the things that it will be used for, but we are seeing good early adoption of Base, as I mentioned. So we've had more than 1 million transacting wallets over the last month, for instance, and Base is still quite new. 10 million NFTs got minted during Onchain Summer. $500 million in assets have been locked up on the platform already. So that's a great sign of adoption.

現在我們還不知道它的所有用途，但正如我所提到的，我們看到 Base 的早期採用情況良好。例如，上個月我們有超過 100 萬個交易錢包，而 Base 仍然很新。 Onchain Summer 期間鑄造了 1000 萬枚 NFT。該平台已鎖定5億美元資產。所以這是採用的一個很好的跡象。

Hopefully, this new kind of -- this new efficiency that is introduced with Layer 2 creates thousands of different types of applications, and we'll see which of those rise to the top. Alesia, you want to talk about monetization?

希望第 2 層引入的這種新效率能夠創建數千種不同類型的應用程序，我們將看到哪些應用程式會脫穎而出。 Alesia，你想談貨幣化嗎？

Yes, I'll just quickly add on here, Brian. So Base monetizes both directly and indirectly. On a direct basis, we do earn sequencer fees. We are reporting those as transaction fees. And today, they are included in the consumer transaction fees in our financial statements. It's very early. They are not material enough to break out. But over time as hopefully they grow, we would provide more disclosure in the future.

是的，我會在這裡快速補充一下，布萊恩。所以 Base 直接和間接地貨幣化。我們確實直接賺取定序費用。我們將這些報告為交易費用。如今，它們已包含在我們財務報表中的消費者交易費用中。時間還很早。它們的物質不足以爆發。但隨著時間的推移，隨著它們的成長，我們將在未來提供更多的披露。

But more importantly I think are the indirect opportunities where, as Brian said, if we see the proliferation of opportunities for apps on Base, this will provide opportunities for our Wallet product, for more money to come from traditional fiat into crypto, and we are an onramp to that overall economy and so we can see opportunities to earn revenue in many of our existing products as well.

但更重要的是，我認為是間接機會，正如布萊恩所說，如果我們看到Base 上的應用程式機會激增，這將為我們的錢包產品提供機會，讓更多的錢從傳統法幣流入加密貨幣，而我們正在整體經濟的入口，因此我們也可以在許多現有產品中看到賺取收入的機會。

Your next question comes from the line of Mike Colonnese with HC Wainwright.

您的下一個問題來自 Mike Colonnese 和 HC Wainwright。

Question from me on the spread. So retail spreads have consistently increased for 4 quarters in a row now which I know you guys have attributed to the mix shift towards higher yielding simple trading volumes. And now looking back, you're about 100 basis points higher than you were back in 2021 when trading activity was certainly a lot more robust on the platform. So if you could help us to understand what spreads could look like when the mix flips and advanced traders become more active again, and could we get back to 2021 type levels or will some of these pricing changes allow spreads to be above those type of levels?

我關於傳播的問題。因此，零售價差連續四個季度持續成長，我知道你們將其歸因於向更高收益的簡單交易量的組合轉變。現在回想起來，比 2021 年高出約 100 個基點，當時平台上的交易活動肯定要強勁得多。因此，如果您能幫助我們了解當組合發生翻轉且高級交易者再次變得更加活躍時，價差會是什麼樣子，我們能否回到2021 年的水平，或者其中一些定價變化是否會允許價差高於這些類型的水平？

Thanks for the question. It’s a good chance for me to remind everybody that when we look at the weighted average fees by taking our transaction revenues divided by volume, it’s an output, not an input. And so mix and behavior on our platform are really important drivers of what that output is in terms of blended fee rates. We've shared with you in Q1 earlier this year where we did increase spread on simple trading. So that is for an example, if we went back to the volumes and the mix we saw in 2021, we would see higher fees on the platform as a result of that Q1 decision.

謝謝你的提問。這是我提醒大家的一個好機會，當我們透過交易收入除以交易量來查看加權平均費用時，它是輸出，而不是輸入。因此，我們平台上的組合和行為確實是混合費率輸出的重要驅動因素。我們在今年早些時候的第一季與您分享了我們確實增加了簡單交易的點差。舉個例子，如果我們回到 2021 年看到的交易量和組合，我們會發現由於第一季的決定，平台上的費用更高。

But we would see fees looked much more like the 2021 fees if the mix shift because as we've shared over the last 2 quarters, we've seen more volume reduction in our advanced trades than we have in our simple trade. And so today, more and more of the volume is coming from the simple trade products than it did in past periods. So I would say, mix is a very critical input into what that resulting fee rate is.

但如果組合發生變化，我們會看到費用看起來更像 2021 年的費用，因為正如我們在過去兩個季度分享的那樣，我們發現高級交易的交易量比簡單交易的交易量減少更多。因此，與過去相比，今天越來越多的交易量來自簡單的貿易產品。所以我想說，混合是最終費率的一個非常關鍵的輸入。

As we've said before, our fees are transparent. They're disclosed to our customers, and so customers get the choice of how they transact on our platform. And it's possible behavior shifts over time, but this is the behavior that we're seeing today, and we will be transparent with you and talk about how that shifts in future market conditions.

正如我們之前所說，我們的費用是透明的。它們會向我們的客戶揭露，因此客戶可以選擇在我們的平台上進行交易的方式。隨著時間的推移，行為可能會發生變化，但這就是我們今天看到的行為，我們將與您保持透明，並討論這種行為在未來市場條件下將如何變化。

Your next question comes from the line of Joseph Vafi with Canaccord.

您的下一個問題來自 Joseph Vafi 與 Canaccord 的對話。

Maybe Brian, could you give us the latest from your team in Washington on the legislative front? I know, obviously, Congress has been a little bit preoccupied with the speaker and the like. But it does feel like legislation coming out of the Congress could ultimately be kind of a silver bullet relative to the current environment of regulation by enforcement?

也許布萊恩，你能給我們介紹一下你在華盛頓的團隊在立法方面的最新情況嗎？我知道，顯然國會有點專注於議長之類的事情。但相對於當前的執法監管環境，國會推出的立法確實可能最終成為一劑靈丹妙藥？

Yes, sure. Happy to give an update. So we've certainly been very focused on getting clarity in the U.S. I do think it's a major issue that's holding back the U.S. right now. And although we've been able to make great progress in other countries in terms of licensing in the meantime and with our derivatives licensure in the U.S., we still need to get more clarity. So there's a few things we can do on that front. One of them is our SEC case. I think hopefully, we'll get the clarity from the courts there next year or at some point.

是的，當然。很高興提供更新。因此，我們當然非常注重在美國澄清問題。我確實認為這是目前阻礙美國發展的一個主要問題。儘管我們同時在其他國家的許可方面以及在美國的衍生性商品許可方面取得了巨大進展，但我們仍然需要更加明確。因此，我們可以在這方面做一些事情。其中之一是我們的 SEC 案例。我認為希望明年或某個時候我們能從那裡的法院得到澄清。

And the other one is Stand with Crypto. So I mentioned that at the beginning, we're really trying to activate the 52 million Americans who own crypto to come out in force in this 2024 election, make their voice heard, make sure that folks in DC recognize that 9 out of 10 Americans don't feel the current financial system is serving them. And there's enough Americans now that have used this technology. It's actually 5x the number that own electric vehicles and 3x the number that have union cars, right? They don't recognize the scale of it quite yet.

另一個是與加密貨幣站在一起。所以我在一開始就提到，我們確實在努力激勵5200 萬擁有加密貨幣的美國人在2024 年的選舉中站出來，讓他們的聲音被聽到，確保華盛頓特區的人們認識到十分之九的美國人不認為目前的金融體係正在為他們服務。現在有足夠多的美國人已經使用了這項技術。實際上是擁有電動車數量的 5 倍，擁有聯盟汽車數量的 3 倍，對嗎？他們還沒有認識到它的規模。

But we've now seen over 100,000 people kind of raise their hand and say, I want to be an advocate for crypto, on standwithcrypto.org, I encourage people to check out if they haven't. And we've been able to start to drive that towards comment letters with the IRS, calling their representatives in Congress. And so some of the things we've been asking them to talk to Congress about is what you mentioned, the legislation. So there are a couple of bills that -- for those that don't know, there are a couple of bills that got approved bipartisan support through the House committees. This is the FIT21 bill stands for the Finance Innovation and Technology 21st century. So FIT21 is one of those. There's also a stablecoin bill in the Senate, the e Lummis & Gillibrand have some legislation they're working on.

但我們現在已經看到超過 100,000 人在standwithcrypto.org 上舉手說，我想成為加密貨幣的倡導者，我鼓勵人們檢查他們是否還沒有這樣做。我們已經能夠開始向美國國稅局發出評論信，致電他們在國會的代表。因此，我們一直要求他們與國會討論的一些事情就是你提到的立法。因此，有幾項法案——對於那些不知道的人來說，有幾項法案通過眾議院委員會獲得了兩黨的支持。這就是FIT21法案，代表21世紀金融創新與科技。 FIT21 就是其中之一。參議院還有一項穩定幣法案，e Lummis 和 Gillibrand 正在製定一些立法。

And so I would say of the folks that I meet with in D.C., the majority opinion 80% of people I talk to is, it's a pretty common sense approach. They say this is interesting new technology. We don't exactly know how it could be useful, but it has some innovation potential, but let's make sure we protect consumers so they won't get harmed, make sure we don't have any more blow-ups. And also, let's make sure America doesn't get left behind. I mean, 83% of the G20 countries are already working on legislation here, why isn't the U.S.?

因此，我想說的是，對於我在華盛頓遇到的人來說，與我交談的人中 80% 的大多數人認為，這是一種非常常識性的方法。他們說這是一項有趣的新技術。我們並不完全知道它有什麼用處，但它有一些創新潛力，但我們要確保保護消費者，使他們不會受到傷害，確保我們不會再有任何問題。而且，讓我們確保美國不會落後。我的意思是，83%的G20國家已經在製定立法了，為什麼美國沒有？

And so I know Patrick McHenry now that the kind of question marks about who is going to be speaker have passed. He has publicly said that it's a priority for him to get back to advancing crypto legislation. So I'm optimistic that America will get this right. And whether it's through the courts or through Congress passing legislation or the 2024 election, America is going to get this right. We're going to make sure that happens. And the 52 million Americans that have used crypto are going to make sure that happens more importantly.

所以我現在認識派崔克·麥克亨利，關於誰將成為演講者的問號已經過去了。他公開表示，他的首要任務是重新推進加密立法。所以我樂觀地認為美國會解決這個問題。無論是透過法院還是透過國會通過立法或 2024 年選舉，美國都將正確對待這一點。我們將確保這一切發生。更重要的是，使用加密貨幣的 5,200 萬美國人將確保這種情況發生。

Your next question comes from the line of Ben Budish with Barclays.

你的下一個問題來自巴克萊銀行的 Ben Budish。

I wanted to follow up on the earlier use around the transaction fees. You talked a little bit in the Q&A about the mix, but just kind of parsing your words very carefully from the prepared remarks, you said you may raise fees and then later you said you wouldn't raise fees in response to the ETF. So I guess, could you perhaps remind us like what are the considerations there? I know you've sort of changed the approach more recently to think about balancing the output of volume and revenues, you no longer just optimizing for volumes, but how are you thinking about potentially -- and I guess, maybe I don't mean to misinterpret your words, if you mean may raise them, you may lower them. But how are you thinking about adjusting them in the future? .

我想跟進交易費用的早期使用情況。您在問答中談到了一些關於混合的內容，但只是從準備好的評論中非常仔細地解析您的話，您說您可能會提高費用，然後您又說您不會針對 ETF 提高費用。所以我想，您能否提醒我們有哪些考慮因素？我知道您最近改變了方法來考慮平衡銷量和收入的產出，您不再只是針對銷量進行優化，而是您如何考慮潛在的潛力 - 我想，也許我的意思不是誤解你的話，如果你的意思是可以提高它們，你可以降低它們。但您未來如何考慮調整它們？ 。

Experimentation has long been part of our product strategy and increasingly part of our pricing strategy to experiment around which model works best for our customers. So for example, Coinbase One started as a pricing experiment in many ways, and we're proud to see the continued growth of Coinbase One in many quarters. As we shared in Q1 of this year, we raised fees on our spread within simple trading, and we did not see any change in our customer behavior as a result of that. And so Ben, just to answer your question is, we may increase, we may decrease in other products and we will continue to learn what works best for our customers over time ultimately to drive engagement and revenue on our platform.

實驗長期以來一直是我們產品策略的一部分，並且越來越多地成為我們定價策略的一部分，以試驗哪種模型最適合我們的客戶。例如，Coinbase One 在許多方面都是作為定價實驗開始的，我們很自豪地看到 Coinbase One 在許多季度的持續成長。正如我們在今年第一季分享的那樣，我們提高了簡單交易中的點差費用，但我們沒有看到客戶行為因此而發生任何變化。因此，本，只是回答你的問題，我們可能會增加或減少其他產品，隨著時間的推移，我們將繼續了解什麼最適合我們的客戶，最終提高我們平台上的參與度和收入。

And speaking to what Emilie's comment on ETFs, what we wanted to say very specifically is that it's not necessarily a driver. The driver is overall customer engagement with our products, overall competitive environment broadly, and we take all of that as input to inform our strategies and pricing experiments.

談到 Emilie 對 ETF 的評論，我們想說的是，它不一定是驅動因素。驅動因素是客戶對我們產品的整體參與度、整體競爭環境，我們將所有這些作為輸入來為我們的策略和定價實驗提供資訊。

Your next question comes from the line of Owen Lau with Oppenheimer.

你的下一個問題來自劉歐文和奧本海默的台詞。

So you continue to manage the expense down sequentially, even though the headcount, I think, is higher in the third quarter compared to the second. Your expense guidance indicates that it will continue to go down in the fourth quarter because of stock-based comp? And Alesia, you also mentioned some guidance in the first quarter as well. But can you please talk about if there's any other levers you can pull to manage or expand? And also, how will international expansion and other growth initiatives will impact your expense growth in the near term? .

因此，儘管我認為第三季度的員工人數高於第二季度，但您仍繼續按順序管理費用。您的費用指導表明，由於股票比較，第四季度費用將繼續下降？阿萊西亞（Alesia），您也提到了第一季的一些指引。但您能否談談是否有其他可以用來管理或擴展的槓桿？此外，國際擴張和其他成長措施將如何影響您近期的支出成長？ 。

Thanks, Owen. As we said this year, our focus has been on financial discipline and prudent allocation of our expenses. The underlying theme here around stock-based compensation is it has a nonlinear expense recognition. And so if you look back the quarter what we shared with you is that the first half stock-based compensation was going to be very similar to the second half, although Q3 and Q4 were going to have different levels. And so driving the Q4 expense is a lot of the reduction in stock-based comp that we just see natural seasonally occurring in the fourth quarter. Broadly, though, the international growth and new product innovation is all within the expense envelope and outlook that we provided for Q4.

謝謝，歐文。正如我們今年所說，我們的重點是財務紀律和審慎的支出分配。圍繞股票薪酬的基本主題是它具有非線性費用確認。因此，如果您回顧本季度，我們與您分享的是，上半年的股票薪酬將與下半年非常相似，儘管第三季度和第四季度的水平有所不同。因此，推動第四季度支出的因素是基於股票的補償的大量減少，我們認為這是自然季節性發生在第四季度的。不過，總的來說，國際成長和新產品創新都在我們為第四季提供的費用範圍和前景之內。

We've shared with you before our approach to allocating our expenses aligned with a 70-20-10 model where 70 -- roughly 70% of our resources is going to our core products, 20% is strategic and 10% to our venture kind of newest product initiatives that are very early stage. Brian's talked a lot about the importance of a company of a lot of innovation and fail fast, so we continue to try and experiment with new things. So that's all included in that outlook, and we feel really good about our ability to continue to invest in growth, invest in innovation while generating positive adjusted EBITDA and building a company that's more financially efficient.

我們之前已經與您分享我們按照70-20-10 模型分配費用的方法，其中70%（約70%）的資源用於我們的核心產品，20% 用於策略性資源，10% 用於我們的創投類型處於早期階段的最新產品計劃。 Brian 談到了公司大量創新和快速失敗的重要性，因此我們繼續嘗試和實驗新事物。因此，這一切都包含在這一前景中，我們對繼續投資於成長、投資於創新、同時產生積極的調整後 EBITDA 和建立財務效率更高的公司的能力感到非常滿意。

Your next question comes from the line of John Todaro with Needham & Company.

您的下一個問題來自 Needham & Company 的 John Todaro。

Sorry for asking another one on the take rate. But I just wanted to understand, so advanced going down versus simple. Is it the understanding that advanced users for some reason are using a simple interface or are advanced users leaving the platform maybe to go to DEXs or some other trading venue?

很抱歉向另一位詢問了接受率。但我只是想了解，如此高級的下降與簡單的下降。是否認為高級用戶出於某種原因正在使用簡單的介面，或者高級用戶離開平台可能前往中心化交易所或其他交易場所？

In general, what we see in low volatility environments, is less trading from advanced users from market makers and participants that are looking for arbitrage opportunities across the ecosystem and across the variety of exchanges. So this is more of a comment on the overall volatility environment and the opportunity to make appropriate trade in this environment than it is around losing customers or them switching platform.

總的來說，我們在低波動性環境中看到的是，來自做市商和參與者的高級用戶的交易較少，他們正在整個生態系統和各種交易所中尋找套利機會。因此，這更多的是對整體波動環境以及在這種環境下進行適當交易的機會的評論，而不是圍繞失去客戶或他們轉換平台的評論。

Your next question comes from the line of Bo Pei with U.S. Tiger Securities.

你的下一個問題來自美國老虎證券的裴波專線。

So 2, if I may. So given our emphasis on on-chain activity, what is the max move to further build our on-chain product portfolio? Do you plan to launch any DEX yourself or just focusing on developing the infrastructure? And then second, another follow up on the retail spreads. So do we charge different spreads for different digital assets? Is Bitcoin trading spread lower than the overall average on our platform?

所以2，如果可以的話。那麼，鑑於我們對鏈上活動的重視，進一步建立我們的鏈上產品組合的最大舉措是什麼？您打算自己推出任何 DEX 還是只專注於開發基礎設施？其次，零售利差的另一個後續行動。那麼我們是否會對不同的數位資產收取不同的點差呢？比特幣交易價差是​​否低於我們平台的整體平均值？

I'll answer the ticky tack on fees, and I'll let Brian then talk about the future of on-chain product road maps. Pricing experiments at this point in time historically have really been by product, but in the future, we may evaluate different pricing experiments by coins of geographies as well. So all of those are opportunities. But historically, they've been largely by product.

我將回答有關費用的棘手問題，然後我將讓 Brian 談談鏈上產品路線圖的未來。從歷史上看，目前的定價實驗實際上是按產品進行的，但在未來，我們也可能按地域的貨幣來評估不同的定價實驗。所以所有這些都是機會。但從歷史上看，它們主要是由產品決定的。

Yes. So thanks for asking about the move to on-chain. So obviously, with the introduction of Base, we're making a big investment there. And one of our next major efforts is going to be how to integrate that into all of our products. And I'm really making a push internally to get more and more of the activity on Coinbase happening on-chain. So there's a few areas where we've been doing that to date. Coinbase Wallet is our self-custodial wallet. So all of the transactions happening there are on-chain. That's where we saw over 1 million while it's being active on Base in the last month. Things like Coinbase Commerce are putting efforts into how more and more of this can happen on Layer 2 on-chain.

是的。感謝您詢問有關轉移到鏈上的問題。顯然，隨著 Base 的推出，我們正在那裡進行大量投資。我們接下來的主要工作之一是如何將其整合到我們所有的產品中。我確實在內部推動，讓 Coinbase 上越來越多的活動發生在鏈上。到目前為止，我們一直在一些領域這樣做。 Coinbase 錢包是我們的自我託管錢包。因此，所有發生的交易都是在鏈上進行的。上個月，當它在 Base 上活躍時，我們看到了超過 100 萬的用戶。像 Coinbase Commerce 這樣的公司正在努力研究如何在第 2 層鏈上實現越來越多的情況。

Actually, we created some end-to-end metrics internally where we look at all the transactions happening on the Coinbase platform. And some of those, especially in our centralized exchange products are happening offchain, that's where you kind of get high-frequency trading happening on our exchange that's not -- those aren't all happening on-chain today. But if you look at all the transactions being generated, I think only about 7% or so is happening on Layer 2 today, and we need to increase that percentage. I think this is true not just of Coinbase by the way, but just the entire crypto industry. As we get Layer 2 needs to really become the default, I would say, for payments for interacting with DAPs, for NFTs, for decentralized social, for identity -- decentralized identity applications.

實際上，我們在內部創建了一些端到端指標，用於查看 Coinbase 平台上發生的所有交易。其中一些，特別是在我們的中心化交易所產品中，是在鏈下發生的，這就是我們的交易所上發生高頻交易的地方，但今天這些交易並不全部發生在鏈上。但如果你看看正在產生的所有交易，我認為今天只有 7% 左右發生在第 2 層上，我們需要增加這個百分比。順便說一句，我認為這不僅適用於 Coinbase，而且適用於整個加密產業。當我們意識到 Layer 2 需要真正成為預設設定時，我想說，對於與 DAP 互動的支付、NFT、去中心化社交、身分認同——去中心化身分識別應用程式。

So if we can get Layer 2 to be the default internally, and we're sort of taking our own metrics around that, hopefully, the rest of the industry will also join us on that. And I think that's going to be a big factor in kicking off another wave of adoption and utility around crypto.

因此，如果我們能讓第 2 層成為內部默認設置，並且我們正在圍繞這一點制定自己的指標，希望業界的其他公司也能加入我們的行列。我認為這將成為掀起另一波加密貨幣採用和實用浪潮的重要因素。

We have one question left in the queue. So let's take that, please.

我們還有一個問題要等。那麼，請讓我們接受吧。

Your final question comes from the line of Eric Dray with Bank of America.

你的最後一個問題來自美國銀行的 Eric Dray。

Just wanted to follow up on the legal front. Kind of 2 parts here. One, I appreciate kind of the date, the January 17 date there. Is there any other dates that investors should kind of be aware of? And then second, Brian, you talked a little bit about your conversations in Washington, how have people been prioritizing crypto regulation heading into such a key election year?

只是想跟進法律方面的情況。這裡有兩個部分。第一，我很欣賞這個日期，1 月 17 日。投資人還有其他應該注意的日期嗎？其次，布萊恩，你談了一些你在華盛頓的談話，在進入如此關鍵的選舉年之前，人們是如何優先考慮加密貨幣監管的？

This is Paul Grewal well. Let me just speak to the first part of your question. The January 17, 2024 date is the most important day to focus on in our enforcement case with the SEC. That's the date that the district judge will hear all oral arguments in our motion for judgment. We think it's an important opportunity to present the court with even more reason to grant our motion that was then was laid out in our papers. We were gratified that the court set an oral argument date was something that we requested specifically, and we're looking forward to that opportunity.

這就是保羅·格魯瓦爾（Paul Grewal）。讓我談談你問題的第一部分。 2024 年 1 月 17 日是我們與 SEC 執行案件中最需要關注的一天。在那一天，地區法官將聽取我們的判決動議中的所有口頭辯論。我們認為這是一個重要的機會，可以向法院提供更多理由批准我們當時在文件中提出的動議。我們很高興法院根據我們的具體要求設定了口頭辯論日期，我們期待這個機會。

But it's also important to understand that we do not expect that the court will necessarily rule on the motion on that date when the core issues or opinion on our motion, of course, is fully within her discretion. But whether we win or lose the motion, we're fully prepared to litigate the case going forward, and we remain confident in the strength of our position in this case. We remain confident. In the end, we will win this case. So more to come there, but the 17th is really the most important critical day to focus on in terms of next steps and next events in the enforcement case.

但同樣重要的是要了解，我們並不期望法院一定會在該日期對該動議作出裁決，因為我們動議的核心問題或意見當然完全由她自行決定。但無論我們贏得或輸掉動議，我們都已做好充分準備繼續訴訟，並且我們對我們在本案中的立場充滿信心。我們依然充滿信心。最終，我們會贏贏這場官司。所以還有更多的事情要做，但 17 日確實是執行案件中下一步和後續事件最重要的關鍵日子。

Yes. And I think the other part of your question was just about how folks are prioritizing crypto as an issue in D.C. So I can say for some of the folks that we've engaged with over there, it's probably their top legislative priority. But the DC has something crisis coming up every week or 2 here, government shutdown, new speaker, the issues in the Middle East. So we don't pretend to be the top issue for everybody at all times. All we can do is kind of meet with folks, be an educational resource, make sure they know that the 52 million Americans really care about this.

是的。我認為你問題的另一部分只是關於人們如何將加密作為華盛頓特區的一個問題優先事項。所以我可以說，對於我們在那裡接觸過的一些人來說，這可能是他們的首要立法優先事項。但華盛頓特區每週或每兩週都會出現一些危機，政府關門、新議長、中東問題。因此，我們不會假裝始終是每個人的頭等大事。我們所能做的就是與人們會面，成為教育資源，確保他們知道 5,200 萬美國人真正關心這個問題。

We actually -- and then also, in some cases, help the parties come together to sort of negotiate language in some of these bills and things like that, that can build support for it. One other thing that we did -- I did mention earlier was, we did a Stand with Crypto Day actually where we invited about 40 or 50 different crypto-entrepreneurs around the U.S., all flew into D.C.

實際上，在某些情況下，我們還幫助各方在其中一些法案和類似的事情中達成某種談判語言，這可以為其贏得支持。我們做的另一件事——我之前確實提到過，是我們舉辦了“加密貨幣展位日”，實際上我們邀請了美國各地大約40 或50 名不同的加密貨幣企業家，他們都飛到了華盛頓特區。

And what was pretty cool about it was that they got to meet with their representatives in many of these states and actually talk to them about what they're building in their jurisdictions with crypto, why we're excited about it and they were able to speak just very passionately about it where -- something I'm happy to speak with all these folks as well, but sometimes they can think, okay, well, this is a big tech company or a fintech company that's not located, do people in my area actually care about this, the people that I'm serving and it was really cool to have those folks fly in and put a face to the name how they're creating jobs with crypto, how they believe this is helping their hometowns and building the future of the financial system because it's certainly a need of an update.

非常酷的是，他們與這些州中許多州的代表會面，並與他們實際討論他們在其管轄範圍內用加密技術構建的內容，為什麼我們對此感到興奮，並且他們能夠非常熱情地談論它— —我也很高興與所有這些人交談，但有時他們會想，好吧，好吧，這是一家大型科技公司或一家不在其所在地的金融科技公司，人們在嗎？我所在的地區實際上關心這一點，我所服務的人們，讓這些人飛來並說出他們如何利用加密貨幣創造就業機會，他們如何相信這正在幫助他們的家鄉和他們的名字，這真的很酷建設金融體系的未來，因為它確實需要更新。

We're certainly working to make it a priority. And I think whenever these issues come up, like we see consumer harm or some issue. It just really highlights the need for regulation and to make sure that U.S. doesn't fall behind here. The vast majority of activity in crypto today is legitimate positive, it is people who are passionate about updating the financial system and using the technology kind of like the early users of the Internet. And sometimes it feels generational.

我們當然正在努力將其作為優先事項。我認為每當這些問題出現時，就像我們看到消費者受到傷害或某些問題一樣。這確實凸顯了監管的必要性，並確保美國不會在這方面落後。如今，加密貨幣領域的絕大多數活動都是合法的積極行為，這些人熱衷於更新金融系統並使用該技術，就像互聯網的早期用戶一樣。有時感覺是世代相傳的。

There's an older generation. They haven't used it, but they don't use e-commerce either, right? So they're -- sometimes they have a little trouble wrapping their head around it, but they often will talk to their staffers, to their children. Some of the younger folks in Congress just immediately get it. And so it's one of these things that's inevitable. It's just a matter of educating folks about it and making sure we get the right outcome.

還有老一輩。他們沒用過，但他們也不用電商吧？所以他們有時會有點難以理解，但他們經常會和他們的員工、他們的孩子交談。國會中的一些年輕人立即明白了這一點。所以這是不可避免的事情之一。這只是對人們進行教育並確保我們得到正確結果的問題。

All right. Well, that does it. Thank you all for joining us, and we look forward to speaking to you again on our next call.

好的。嗯，就是這樣。感謝大家加入我們，我們期待在下次電話會議中再次與您交談。

This concludes today's conference call. Thank you for joining. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的加入。現在您可以斷開線路。