BTGO

Hello, everyone. Thank you for joining us, and welcome to BitGo first quarter 2026 earnings call. After today's prepared remarks, we will have a question and answer session. If you would like to ask a question at that time, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Rachel Dye, Head of Investor Relations. Please go ahead.

Hello, everyone. Good afternoon. Thank you for joining BitGo's Q1 2026 earnings conference call. Our remarks today will include forward-looking statements, including those regarding our future operating results and financial condition, such as our business strategy, market growth, and objectives for future operations. Actual results may vary materially from today's statements. Information concerning risks, uncertainties, and other factors that could cause these results to differ are included in our SEC filings, including those that are stated in the Risk Factors section of our annual report on Form 10-K for the year ended December 31, 2025, and in our other filings with the SEC. These forward-looking statements represent our outlook only as of the date of this call. We undertake no obligation to revise or update any forward-looking statements. Additionally, the matters we discuss today will include both GAAP and non-GAAP financial measures.

Reconciliations of any non-GAAP financial measures to the most directly comparable GAAP measures are set forth in our earnings press release. Non-GAAP financial measures should be considered in addition to and not as a substitute for GAAP measures. Joining me today on the call are Mike Belshe, Founder and CEO, as well as Ed Reginelli, CFO. With that, I will now turn the call over to Mike.

Thank you, Rachel, and thank you everyone for joining us. We delivered strong underlying business performance in Q1 despite continued softness across the broader digital asset market. While market activity created pressure on our headline financial results, underlying monetization across the businesses remained strong, and we continued to gain market share across assets under custody, trading volume, and several of our product verticals during the quarter. We also continued to invest across product platform and go-to-market capabilities while making meaningful progress across several strategic growth areas that we believe will matter over the long term. Before I go deeper into the quarter, I want to address an important point regarding the accounting presentation of our results, as we expect this will be an area of investor focus. BitGo today operates multiple businesses across trading, staking, financing, stablecoin infrastructure, settlement, and other related services.

Under GAAP, different parts of the platform are recognized differently for accounting purposes, with certain activities reflected on a gross basis and others reflected on a net basis. The business continues to scale and diversify, reported revenue alone does not always capture the underlying economics or monetization profile of the platform. At the start of January, we launched derivatives within our digital asset sales business. Adoption has been encouraging, with approximately $3 billion in notional derivatives trading volume in Q1 alone. As a result, a portion of our client activity shifted from spot trading to derivatives products. That mix shift matters when evaluating our reported revenue because spot trading activity is reflected on a gross basis while the derivatives are reported on a net basis.

As a result, the sequential decline in total revenue does not fully reflect the underlying platform economics and reported revenue comparisons to prior periods are not directly comparable. More broadly, we believe investors should evaluate the business through the underlying margins, take rates, and net economics after direct transaction-related costs associated with each of our core revenue streams. We are building institutional-grade digital asset infrastructure, the secure regulated control layer that institutions rely on to build within digital assets. Our clients increasingly want integrated workflows across regulated custody, trading, financing, settlement, stablecoin infrastructure, and related services through a single trusted partner. We continued to strengthen that foundation throughout Q1, and we believe its importance will only increase as the market matures. We view custody as the entry point to the broader BitGo platform and the foundation of our client relationships.

Clients establish trust, bring assets onto the platform, and increasingly expand into our other products and services with a single integrated framework. This land and expand strategy is central to how we deepen client engagement. It's how we increase workflows across the platform and drive long-term platform value. We also continue to see growing participation in the space from traditional financial institutions, including asset managers, issuers, and other large counterparties. In our view, this remains one of the most important long-term tailwinds for BitGo. These institutions are generally not building infrastructure from scratch. They are looking for trusted partners that can support digital asset adoption in a regulated and scalable way. This is exactly where BitGo is focused and where we believe we are differentiated. Our advantage is the combination of regulatory standing, security architecture, and the breadth of capabilities we provide within a single integrated platform.

Operationally, this was reflected in a continued deepening of client engagement across the platform, increasing our number of clients served to 5,569, up 42% year-over-year, and users to 1.2 million, despite broader market headwinds. Reported assets on platform at the end of Q1 were approximately $63 billion, and reported assets staked were $11.8 billion, both down from prior periods in dollar terms, primarily as a result of lower digital asset prices during the quarter. Because digital asset prices can materially impact reported asset values, we also evaluate underlying asset growth on a price-normalized basis.

We believe this more accurately reflects the fundamental growth of the business, client inflows, and BitGo's continued market share gains independent of the market price movement. Using current quarter digital asset prices across all periods, normalized assets on platform actually grew 29% year-over-year and 10% sequentially. Normalized stake balances grew 21% year-over-year and 27% sequentially. Bitcoin and Ethereum balances on the platform grew 131% year-over-year and 7% sequentially. Taken together, we believe these demonstrate continued underlying momentum across the business despite the broader market volatility. Let's now dive into some key operational and commercial highlights from quarter one. A key focus throughout Q1 was continuing to broaden the reach of our institutional platform through expanded commercial relationships and partnerships.

For example, in Q1, we significantly expanded our partnership with 21Shares, one of the world's largest issuers of cryptocurrency exchange-traded products. This highlights the underlying demand for regulated crypto exposure in key markets around the world, including throughout Europe, and builds upon BitGo's existing markets. Additionally, just a few weeks ago, we announced plans with OKX, a leading crypto exchange, to bring automated off-exchange settlement infrastructure to institutional clients trading on OKX in the U.S.. This is an example of BitGo helping solve structural challenges for institutional trading, which has historically required institutions to pre-fund assets on exchanges and take counterparty risk against those exchanges. It addresses the growing demand from institutions to separate custody from trading risk. We believe this is a major milestone for the industry, clearly establishing BitGo as the leader in institutional settlement.

Beyond these announced partnerships, we also deepened relationships across a broader set of institutional clients, exchanges, asset managers, and ecosystem partners during the quarter, including several strategic engagements that have not yet been publicly disclosed. These partnerships are important not simply because of their headline value, but because they reflect the increasingly strategic role BitGo plays within the institutional digital asset workflows. They demonstrate that institutions are choosing BitGo not only for custody, but as a premier core infrastructure partner to support broader operational and financial activity. Throughout the quarter, we continued to extend our product capabilities into strategic growth areas. As I touched on earlier, we launched derivatives trading in January to support growing client demand for tools that help manage volatility, hedge exposure, generate yield, and structure risk more efficiently.

Adoption in the first quarter of launch has been encouraging, and we have already seen meaningful engagement across the platform. Importantly, some existing spot clients are now incorporating derivatives into broader workflows within BitGo, which is exactly the type of cross-product adoption we want to drive over time. Stablecoins is another area where we made meaningful progress and where we continue to see significant long-term opportunity. We have said consistently that stablecoin infrastructure can become one of the most important growth areas for BitGo over time, and this quarter reinforced that view. Stablecoin infrastructure is one of the clearest examples of how BitGo's platform extends beyond trading into broader financial and payments workflows. During and shortly after quarter end, we launched BitGo Mint, a one-stop portal where clients can mint, burn, and convert stablecoins from one type to another.

We also continue to support clients and partners across reserve management, transaction processing, and the broader operational stack around stablecoins. When we look at client conversations today, the range of stablecoin use cases is getting broader across payments, treasury management, settlement, tokenized asset infrastructure, and embedded financial applications. We believe BitGo is well-positioned to benefit from these trends, and we're pleased to announce several stablecoin-related commercial partnerships, including with StableC, SoFi, and The Better Money Company. On financing and broader institutional workflows, we launched our unified financing platform and further expanded Prime Services capabilities, including additional risk management, structured products, financing, and treasury tools. These investments are strategically important. Each time we add a new capability, that helps clients keep more workflows inside the BitGo ecosystem, we deepen client engagement, increase the overall utility of the platform, and make BitGo more central to how those clients operate.

Geographic expansion has also remained an important priority. This quarter, BitGo was named issuer and primary custodian for FYUSD, a U.S. dollar-backed stablecoin designed for institutional adoption across Asian markets. In Europe, beyond the 21Shares partnership, we added new traders to BitGo Prime's liquidity network in April, improving execution for our clients on a regulated infrastructure. I'd like to now provide some context on the financial results before I hand this over to Ed for a more detailed discussion. We were not insulated from the market environment. Softer market conditions reduced activities in parts of the business, and the non-cash markdown on our digital assets treasury weighed on GAAP earnings.

However, despite this environment, the underlying economics of the business remained resilient relative to broader market conditions, as they were supported by continued market share gains, improved monetization across several of our core business lines, and ongoing client engagement across the platform. At the same time, we continued to invest in the strategic areas we believe will drive durable long-term growth, such as product, platform, regulatory capability, and go-to-market execution. Having operated through multiple up and down cycles in our 13-year history, we believe periods like this often create the best opportunities to strengthen the business and deepen our long-term competitive position. Looking ahead, some parts of the business remain sensitive to market activity and token prices, while other parts are benefiting from onboarding, product expansion, and continued traction with clients and partners.

Ed will take you through that in more detail, including the financial bridge for the quarter and the key drivers across each business line. Before I hand it over, I want to close with a broader perspective on where we see the industry heading. Institutions continue to move into digital assets. Stablecoins continue to become more relevant to real-world payments and financial workflows. Tokenization continues to create new infrastructure needs. At the same time, regulatory clarity continues to improve across key jurisdictions, including constructive momentum in the U.S. around market structure and digital asset legislation such as the Clarity Act. We believe greater regulatory clarity is one of the key factors that can further accelerate institutional adoption and BitGo's total addressable market over time, particularly as traditional financial institutions seek clearer regulatory frameworks before committing additional capital and resources into the digital asset market.

As the market matures, clients increasingly want trusted, regulated, integrated partners rather than fragmented piecemeal solutions. We believe those structural trends continue to support the long-term demand environment for BitGo. Periods like this often separate businesses that are simply exposed to market activity from businesses that are building durable value. Our role is not to call the market. Our job is to continue strengthening the platform, deepening the client relationships, and positioning the business to emerge stronger as adoption expands. We did that in Q1. Now I'll turn it over to Ed.

Thank you, Mike, and thank you everyone for joining us today. Let me start with the consolidated financial view and then walk through each of our major offerings. In the first quarter, total revenue was $3.8 billion, up 113% year-over-year and down 39% sequentially. The year-over-year increase reflects a larger digital asset sales business and a broader contribution from Stablecoin-as-a-Service relative to prior year quarter. The sequential decline was primarily the result of lower digital asset sales activity in a soft crypto market environment. As Mike noted, the headline percentage change overstates the decline in trading revenue as a portion of spot trading activity has shifted to derivatives, which are reported on a net rather than gross basis.

For that reason, we do not think that analyzing total revenue alone fully captures the underlying economics of the quarter. While total revenue declined 39% sequentially, direct costs also declined at a similar rate. At the same time, margins and take rates improved across digital asset sales, staking, and Stablecoin-as-a-Service. As a result, the sequential decline in total revenue was more pronounced than the change in the underlying economics of the business. Adjusted EBITDA loss was $1.7 million in the quarter, compared with a positive $3.9 million in Q1 of last year and a positive $12.1 million in Q4. The year-over-year and sequential change reflected weaker market conditions, lower subscriptions and services revenue, and continued investment in the business.

It also included approximately $3 million of one-time legal, professional costs, and other one-time charges associated with the IPO process and other strategic initiatives. GAAP net loss was $60.7 million in the quarter, compared with a net loss of $25.7 million in Q1 of last year and a net loss of $50 million in Q4. The primary driver of that result was negative mark-to-market adjustments on digital assets, as well as elevated IPO-related stock-based compensation expense, which we expect to normalize from Q1 2026 levels going forward. Let me now move to the offerings. Starting with digital asset sales. Revenue for digital asset sales was $3.7 billion, up 128% year-over-year and down 39% sequentially.

While overall trading activity reflects a weaker market environment, the underlying economics of the business improved during the quarter. On a normalized basis, excluding the accounting impact of the derivatives mix shift, our underlying trading economics outperformed the broader market sequentially and significantly outperformed on a year-over-year basis. We believe this reflects continued market share gains in institutional digital asset trading. Overall margin was 32 basis points compared with 20 basis points a year ago and 24 basis points in Q4, primarily driven by the contribution from derivatives activity following the launch of the offering on January 1 of this year. Strategically, we view derivatives as an important extension of BitGo's platform. Clients increasingly want integrated workflows that include risk management, hedging, yield generation, and structured solutions alongside spot execution. Expanding those capabilities strengthens client engagement and increases strategic relevance of our trading platform over time.

Turning to staking. Revenue was $49.4 million, down 66% year-over-year and 15% sequentially, primarily reflecting lower token prices. Staking take rates increased 16.1% from 7.6% in Q4 and 12.5% in the prior year quarter, driven by additional token onboarding and a more favorable validator mix, including the contribution of the higher economics of the Canton related activity. While the current mix may vary over time, the broader takeaway is that we are improving the economic quality of this business line while continuing to expand token support. Subscriptions and services revenue was $25.6 million, up 11% year-over-year and down 35% sequentially. The sequential decline primarily reflected a lower level of one-time ecosystem and implementation-oriented projects compared with Q4, when activity in this area was elevated.

While these projects are not recurring in nature, they remain strategically important because they often support token onboarding, client implementations, and broader downstream revenue opportunities across the platform. We do not view the sequential revenue decline as representative of the underlying health of the recurring revenue base. Stablecoin-as-a-Service continued to be the bright spot during the quarter. Revenue was $38.2 million, up 44% sequentially. Take rate improved to 7.4% from 5.5% in Q4. Growth was driven by continued client adoption, product enhancements, and new partnerships. We view stablecoin infrastructure as a significant long-term growth opportunity for BitGo, supported by expanding adoption across payments, settlement, treasury management, and broader financial applications. Interest income was $0.9 million, up 259% year-over-year and 89% sequentially.

Turning now to expenses. The most important point is that the quarter reflects both temporary and strategic factors. We incurred approximately $3 million of one-time legal and professional fees related to the IPO process and other strategic initiatives. Our stock-based compensation of $11.2 million was also elevated during the quarter compared to $0.8 million in Q4 of 2025. We expect a moderation in share base expense on a go-forward basis. During the quarter, we continued to invest in talent, product development, and platform capabilities as part of a deliberate long-term strategy. We are managing the business with discipline. We are not managing the business to maximize one quarter of profitability at the expense of our long-term growth opportunity.

Our balance sheet remains strong, including approximately $186.6 million of cash and $167.1 million of Bitcoin held in treasury on the balance sheet as of the quarter end. Combined with our capital-light model, this provides the flexibility to invest through the current cycle, support client activity across the platform, and pursue strategic growth opportunities from a position of strength. I'd also like to briefly touch on the higher interest expense in the quarter. This reflects funding used to support customer borrowing and lending activity on the platform. Importantly, this was operational in nature rather than corporate financing and helps enable revenue-generating client workflows within the business. Moving now to our outlook for Q2 2026.

Based on quarter-to-date trends, we are assuming that digital asset market conditions will remain broadly consistent with current levels, building on the stronger performance observed at the end of the first quarter. Digital asset sales revenue is expected to remain broadly consistent with Q1, with margins anticipated to be comparable, assuming a similar mix of derivatives and spot trading activity. Current trends indicate strong year-over-year growth for the quarter. Staking revenue is expected to remain broadly consistent with Q1, supported by continued growth in staked assets despite ongoing price volatility in key tokens. Subscriptions and services revenue is expected to grow sequentially on a reported basis, supported by client growth across custody and wallets, while also benefiting from non-recurring ecosystem and implementation-related work. Stablecoin-as-a-Service revenue is expected to grow modestly sequentially, supported by ongoing client adoption and new partnerships.

Total expenses for the second quarter, excluding direct costs associated with digital asset sales, staking, and Stablecoin-as-a-Service, are expected to decrease from Q1 levels, which were driven by IPO-related charges during the quarter and normalization of stock-based compensation. The company will continue to invest in long-term platform growth and go-to-market execution. With that, I'll turn it back to the operator to open the call for questions.

We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. Please pick up your handset when asking your question. If you're muted locally, remember to unmute your device. Please stand by now while we compile the Q&A roster. Your first question comes from the line of James Yaro with Goldman Sachs. Your line is open. Please go ahead.

Good afternoon, Mike. I'd love to just get a little bit of an update around the stablecoins and service demand from partners, and I guess how this has evolved as the Clarity Act progresses. Maybe longer term, how would you expect the act passing to impact the demand?

Hey, thanks, James. I appreciate the question. Good to speak to you all. In terms of stablecoins, continues to grow strong. I mean, basically everybody's out there looking at Clarity and GENIUS, which doesn't allow interest. If you have a broad distribution of users at your bank or financial institution, you're faced with a choice. Do you, A, launch your own, your own stablecoin and then be able to participate in yield, use it with your partners, use it with your business in some way? Do you give that up to somebody else who's going to instead take that? In general, just strong interest. I know others have cited, you know, lengthy pipeline. We've got a couple of deals we can't announce yet, but continues to look really positive. Also, we did just extend our USD1 contract, so we're happy that that partnership has been doing fantastic.

Thanks, Mike. That's really helpful. Maybe just as a follow-up, sort of a similar question around tokenization facilitating, you know, tokenization projects and how you see the opportunity set for your business there.

Look, I think tokenized equities have really exploded in the last six months. There's at least four kind of different models for how to bring tokenized equities to market. We're proud that we participated, well, actually we're participating with all of them. You know, we are infrastructure. One of the benefits of being infrastructure is that, you know, we participate on all of these, and then we work with the clients to kind of forge them. I think the market's gonna figure out which of these work best. You know, the first one that we're proud of is, you know, we are the sole custodian within the Figure Markets ecosystem. They started, I think in February. Obviously they've got one model which uses, you know, Provenance and Figure ATS.

That's been kicked off. On top of that, there's tokenized wrappers that exist. There's a couple of different players pursuing that. You saw DTCC just announcing that they've got a plan to go to market. We will be participating with all these, and we think it opens up our business tremendously, you know, kind of towards how we grow in the direction of prime brokerage. Anyway, we're very excited about this. We're heavily investing in it and more to come.

Very helpful. Thanks, Mike.

Your next question comes from the line of Pete Christiansen with Citi. Your line is open. Please go ahead.

Thank you. I appreciate the question here. Mike, back on Stablecoin-as-a-Service, to what degree is BitGo involved in the design and construction of the networking? Meaning connecting with other partners which may not be a part of the BitGo client ecosystem. My thinking is there's an opportunity from a lead gen perspective for services with Stablecoin-as-a-Service emanating from one particular client to others. Just wondering if you could provide some color on that. I'm curious on any learnings here on scaling this business and what it could mean for potentially launching L1 as a service at some point. Thank you.

Great. Thanks, Pete. Let's see. On the first point about stablecoins, I'm glad you're hitting this. It's a little bit of a subtle point, you know, one of the advantages that BitGo has, you know, with the large client base, is that anyone that launches their stablecoin directly with BitGo immediately plugs into an entire network. If you recall, you know, at the bottom of our stack, we have our self-custody wallet platform that's distributed all over the planet. Hundreds of exchanges and broker-dealers are using that. As soon as you light up on the BitGo API, you light up on all of those parties.

Additionally, you know, I think, you know, some of the traditional folks that are coming into the space are a little bit more, if you want to use Peter Thiel's analogy of zero to one, they're really more like the one to many, and BitGo's kind of like the zero to one. I do think it's a different skill set of how do you take a product which currently isn't deployed, and get the flywheel spinning and grow it. BitGo's got tremendous reach into the DeFi ecosystem, into the crypto ecosystem. Obviously we've got partners and hedge funds and venture funds and all others. When folks use the BitGo platform for stablecoins, we definitely are actively working with helping them.

You've seen, historically there's been a few stablecoins that launched several years ago, and they pretty much stayed kind of at zero for a long period of time. That's because of not having, necessarily a really good go-to-market plan. We definitely help our clients with this. We're motivated and interested and incentivized to do so. I think that's one of the advantages of using the BitGo stablecoin platform. I'm sorry, you had a second part of the question. What did you ask again?

Oh, on-

Yeah.

The potential of taking the learnings and the capabilities that you have with Stablecoin-as-a-Service to potentially offering L1 as a service at some point.

Oh, for BitGo?

Correct.

With that topic's come up quite a bit. I think, you know, some of the new L1s, particularly around stablecoins, are hitting a new need, that, you know, kind of the first generation of L1s didn't solve, and that's the ability to pay fees in kind of the stablecoin. Both Tempo and Arc, as you're probably aware, you know, if you're moving your stablecoin, whatever fees you pay to the chain, you actually can pay in the stablecoin itself. Whereas when stablecoins are moving on Ethereum or Solana or whatnot, you always have to, in addition to having the stablecoin, you have to have a little bit of the L1's token. I think these innovations are going to frankly, they're kind of just required.

I mean, it's annoying and a nuisance to have to pay kind of a foreign fee in order to move a stablecoin. As for BitGo's own ambitions, there could be something. We have not announced anything publicly yet, you know, stay tuned.

Thank you, Mike.

Your next question comes from the line of George Sutton with Craig-Hallum. Your line is open. Please go ahead.

Awesome. Thanks. Hey, guys, this is Logan hopping on for George. Mike, I wanted to start with sort of a specific one on Canton. Obviously you were an early supporter there, and you've made a few announcements since kind of this year expanding that partnership. Seems like a blockchain that we keep hearing a lot about, and it's kind of getting more business. I wondered if you could just walk through some of the different ways that you're set to benefit from their growth, and just kind of give us a sense for where that relationship could go in the future.

Sure. Thank you for the question. Let's see, Canton, I mean, you know, has been a big supporter of digital asset, DRW Don Wilson, for quite some time. We're proud to be the only qualified custodian on the network today. Canton deserves credit for really addressing early some of the institutional complaints that come with building applications on blockchain, in particular privacy, in particular, you know, how you receive assets. You know, there's been concern about dust transactions on Bitcoin, Ethereum, et cetera. They solve these problems, they've been able to bring in a number of people.

They also are, I think, having kind of a second mover advantage in terms of understanding how to distribute their own token in a way that's fair and helps incentivize the network and grow before having it kind of hit the market and liquidate and cause issues. I think they're well-poised. You know, the privacy, they're kind of the only permission privacy chain in town right now. With the growth they've had, I think they're looking good. In terms of BitGo, one of the things that's interesting about BitGo and often difficult to describe is going into depth on a particular coin or an asset.

I mean, we'll say that, you know, "Hey, you know, BitGo has wallet support for," pick your favorite coin, or, "We have staking support." It's easy to say we have the wallet, we have the staking, but there's also a lot of depth that goes into that. Like, what features do you support on that coin? You know? How many staking providers are you interoperable with? Like, what flexibility do clients have? Part of how we grow is by making sure that we can meet all of our clients' needs. One example specific to Canton, it's kind of a funny one, I think, but it's also really important. I mentioned these dust transactions.

You know, traditional finance is often worried, well, like, you know, what happens when you're a financial institution and you receive these dust transactions on this open network? What if you didn't want it? What if it's from, you know, a bad guy? How do you deal with that? Now, my own personal opinion is that in practice, these are not significant issues, but these really do trip up regulators, legal teams, you know, extensively. Canton has a feature where you can accept, you know, all the deposits and prove them. BitGo's not just integrated with the chain, we actually implement that feature. That particular feature creates the demand for more features.

It turns out that it's a little bit annoying to constantly have to approve every transaction that comes in, so then they want whitelisting and, you know, ability to kind of approve those in batch and things like that. We build those. I think we're well-poised. I think we're happy that we have the large network on Canton, in terms of, you know, we're able to integrate with Go Network and other things on the go forward, that should just continue to expand.

Got it. Helpful color. Second, just a quick one for me. I mean, kinda putting the reporting differences aside, are you able to just kinda walk through how the net economics on spot volume compared to derivatives volume, compare for you guys? Just wanna get a better understanding of as this shifts over time, kind of what we'd expect to see on that net revenue line.

I'll hand it to Ed in just a second, but some quick color. I think in the crypto markets, you will see the same thing that's happened in other markets. You know, derivatives tend to be a better way, more economic way to trade in the industry. The volumes on the derivatives side will continue to grow and eventually far outpace the spot markets. We already saw in Q1 some conversion from spot market trading over to derivatives trading, which was expected. We hope to continue to grow that. For just kind of one quarter of offering, we think that the results were pretty good. We think that that will continue.

Of course, you know, kind of our margin on a derivative product is higher than what you would have in spot markets. We're happy about that as well. Ed, do you leave anything off?

No, I mean, we're, as Mike mentioned, very excited to extend some more product within our trading platform. We've really strong client adoption, and we're still very excited about the spot trading business. Year-over-year, we have seen tremendous growth. We did go down sequentially, and that was really just due to the fact that in Q4, we had exceptional volume from a few key clients. Overall, you know, we're excited about trading and expanding our capabilities and extending product launches there.

Okay. Got it. Thanks, guys.

Your next question comes from the line of Brett Knoblauch with Cantor Fitzgerald. Your line is open. Please go ahead.

Perfect. Thanks, guys, for taking my questions. Maybe just on kind of the segment stuff, the subscription services sequential decline was a bit more than I was anticipating, and I know you guys called out maybe it was due to lower onboarding or implementation fees. Could you maybe provide some just color on the underlying strength in that business? I know the number of kind of clients continue to increase. You know, how did the subscription services do outside those maybe, you know, one-time non-recurring fees?

Thanks, Brett. First off on the one-time recurring fees, just so people understand what those are. You know, as we take on new coins and build them, sometimes they've got, you know, particular technology components that are extensive. We do charge blockchains and others onboarding fees to do that. However, you know, where we really wanna make, you know, our impact in the world is with the ongoing recurring revenues that come from real clients. Yes, the one-time components came down. On the subscriptions and services, you know, I think it's been in line with where we would have expected it to be, other than that we had less of the one-time fees. The other thing I would point out is increasingly we are wanting to move the revenue kind of up the stack.

As I've mentioned before, you know, the custody fees and subscription fees by themselves, you know, that's kind of a cost center to our clients. Paying fees as our clients are doing work with trading and with staking and with borrow and lend, et cetera, those are where they're making money. It's a much more palatable place for our clients to pay us fees. That does change the mix a little bit, and it's one of the challenges in describing the business is that we have multiple products and services. I don't have the stat, maybe Ed has the stat, but, you know, we shared previously, you know, about 72%, 73% of clients are using two or more products. Over half the clients using three or more products.

We think that really if we can bring clients in and we lead with, you know, custody is the way they come in, and it's usually what we're known for, but they grow into these other products and services, and we think that's the strength. Ed?

We've seen tremendous growth in number of clients utilizing our custody and wallet products, and that's somewhat of a recurring revenue stream. That story remains very strong. Again, the big story there was in Q4, we did experience a very large volume of ecosystem projects. Excluding that, the business performed very strong year-over-year, first of all, and then also sequentially. Overall, we're still very optimistic about our customer pipeline and that business, that part of our business growing.

Awesome. Then maybe if I could just follow up on the staking side. Yeah, go ahead, Mike.

Yeah, go ahead.

Oh, I was gonna If you had another point on that, yeah.

Sorry. You know, one of the things I would like to figure out how to do really well with all of you guys is, how do we differentiate the BitGo performance from, you know, the market price volatility performance? Obviously, we don't consider ourselves to be a huge impact on the latter, although hopefully we have an impact to some degree. Really we wanna focus on the former. The normalized numbers that we discussed on the call, I think looked pretty encouraging. As long as we are, and it doesn't really matter where you pin the prices to. You can pin it to the beginning of the period, the end of the period. In all cases, you know, we saw significant growth both on the assets on platform and also on the assets under stake.

The revenue that we'll get on, you know, the, just the custody component will be down from the U.S. dollar notional, sorry, the U.S. dollar pricing. In terms of the actual assets on platform, we see good growth there. We're happy about that for the future.

Helpful. Just on the staking front, obviously asset stake decline, that's, you know, general declines in asset prices. It looked like the take rate there ticked up a good bit if I'm just doing kind of beginning of period and the period average, almost like doubled quarter-over-quarter, I guess. Did you guys tick up pricing on the staking side?

We had a couple of different things. We had a change in the mix of some of the partners that we work with, and then also some of the coins are stronger in terms of the rates we get on those. Those have been positive for us. Lastly, as we did note on the call, on a normalized basis, the overall assets under stake did grow. Remember the assets that you stake is basically the non-Bitcoin assets, which is like the one set of assets that are even more volatile than Bitcoin. Ed?

Doing, I guess the thing I will add to that is. What was your last comment, Mike? I think you covered it, Mike. You covered it.

Okay. Yeah.

All right. I knew what I was gonna say. The only thing I would add is in addition to a positive validator mix, as we get to a certain size and volume with certain coins, we're able to push a lot of that staking capability to our own nodes, where we appreciate a much higher margin. That's also helping support the margin growth.

That's a good slide. Thanks, Ed. Thank you, guys. I appreciate it.

Great.

Your next question comes from the line of Ed Engel with Compass Point. Your line is open. Please go ahead.

Hi, thanks for taking my question. Question on the increased stablecoin take rate. Any more color on what's driving that? I know that there's moving pieces between partnership mix and then some transaction revenue. I just wanna get an idea if transaction revenue is actually starting to drive that business rather than just interest income. Thanks.

Actually I think it's mostly that kickstarting the business. We actually gave some discounts kind of on the early piece when coins are growing, and then now we've kind of graduated beyond that. The take rate just goes up as a result of that. That's the main one. In terms of stablecoin conversions, we do a lot of stablecoin conversions. Those are relatively low margin. Those show up more in the trading side rather than under the stablecoin numbers.

Great. Thanks for that. I guess on the OKX integration for off-exchange settlement, I mean, it kind of seems like it's just a matter of time before this structure becomes kind of the standard industry. Just curious, like, how do these integrations, I guess, help the business just economically? Is it more of a way to kind of gain and maintain market share, or actually able to monetize some of those trading fees?

Yeah, great question. Look, part of it is you get the assets on platform, and then you have the opportunity to address those clients in many ways. We're trying to help make the settlement network just be the strongest, largest volume that's out there. The most important place to be is on the largest exchanges. You know, the big three is Binance and OKX and Bybit. This is one of the big ones, and we're really excited about the fact that we have it. Then, in terms of how we make money, I think one of the elements of the crypto industry that hasn't been fully considered, you know, through most of our 10-year history, is how to price risk.

Remember, when you're doing trading, there's three components of pricing. Number one is, what's the cost of the underlying asset that you're trading? Number two is, how much profit do you wanna take? 5 basis points, 10 basis points, 100 basis points? The third one is, what is your risk? Because crypto markets are highly volatile, relatively new, require pre-funding out of the exchanges, the measurement of that risk is super tough. Of course, the industry has seen big penalties, like what happened when FTX had a blowout, you know, back in 2022. The main thing that our clients get out of, you know, having off-exchange settlement is reduced risk and the ability to start actually measuring and quantifying the risk so that they can get their prices right.

I think so far what's been happening is we have really wide margins on the, on the profit side, and then people just say, "Well, that's big enough. It'll cover some of the risks that I'm taking." Now with the ability to trade without having to pre-fund various venues, you take out that risk and you can start to quantify it for real. This is gonna bring prices kind of back. You know, we see Charles Schwab came in. I think were they gonna be at 75 basis points on their retail trading? Morgan Stanley has now announced that they're gonna do 50 basis points on their retail trading.

You know, as they bring their rates down, they are going to increasingly have to figure out how they're going to measure and control the risk that they're taking. I think they're gonna, they're gonna find BitGo's settlement network to be a very satisfying place to be.

Great. Thank you.

Your next question comes from the line of Brian Dobson with Clear Street. Your line is open. Please go ahead.

Hey, good evening. Thanks for taking my question. At the top of the call, you spoke a little bit about growing your share of a client's business organically over time. Can you give us a little bit of color on what that looks like and how you're thinking about client acquisition costs?

Yeah. Look, it's been one of Thank you, Brian. It's been one of our key metrics, you know, since our IPO day back in January, I mean, before that internally. Look, overall, the market is simply expanding. What started out, you know, a decade ago as primarily Bitcoin, then expanded into a few other assets, then ICOs, and now it's grown into stablecoins and DeFi. You know, it's about to go into tokenized equities. The more clients you have on platform, the more it means that your clients are gonna be able to match each other on the settlement network and whatnot. We look for partnerships where we can have a partnership that brings on more clients. The OKX platform, sorry, OKX integration is no exception.

By doing that deal, we can now work to find clients that we have in common. Sometimes we're helping OKX with getting more clients, sometimes they're helping us with getting more clients. Basically anywhere that we can find a partnership where one client begets more clients, we consider that a win.

Great. Thanks very much.

Your next question comes from the line of Joe Vafi with Canaccord Genuity. Your line is open. Please go ahead.

Hey, guys. Good afternoon. Thanks for the question here. Just maybe we talk about the loan book a little bit, how you're thinking about that strategically. You know, where it may go from here, how it's performing here in this spot volatility market, and then quick follow-up after that.

Thanks, Joe. Ed, do you wanna answer on where we're at right now?

Sure.

I'll answer after that.

The loan book is currently roughly around $200 million outstanding with client-facing. We believe there's an incredible opportunity ahead of us. I think we had mentioned, Joe, in the past that our problem is we have more demand than we have supply of dollars to lend. A lot of the clients are looking for U.S. dollars to borrow. We try to find unique ways of bringing in additional dollars. Obviously, the IPO was very helpful in bringing in some additional funds to the company to support the program. We'll continue to keep building that program. Again, the opportunity that we see there is huge.

And then, uh, just-

Great.

Adding into this part why I'm excited about the tokenized equities is, I think, there's tremendous demand to borrow against fully collateralized, you know, fully collateralized positions against all kinds of things. While there was a healthy market, you know, borrowing against fully collateralized in Bitcoin, there's a lot more people that have equities that they would be willing to apply towards this than there are people that are holding just Bitcoin. We think it's gonna greatly grow the market once we've got tokenized equities on chain.

That's great. I didn't actually think about that, Mike, and opening up that margin lending market on tokenized equities.

Yeah.

Just, maybe, quick, maybe kind of talk about a little bit of the mechanics of maybe some of your customers switching some trading volume from spot to derivatives. You know, it feels like if they wanted to do derivatives trading volumes, they could perhaps have been doing those away from you, to begin with. Just, you know, wanted to drill down on the motivations of clients of, you know, of that mix shift from their end. Thank you very much.

Thanks, Joe. Look, one of the least sexy things that we do, but probably the most important things that we do, is getting the regulatory right behind what we do at BitGo. Our clients very much appreciate that we are OCC chartered national bank. They very much appreciate the regulatory standing that we have across the globe, whether you're talking about Germany or Dubai or Singapore. In general, once they've gone through the onboarding and diligence process with BitGo, it's difficult to replicate that with multiple partners. You're absolutely right. They could have traded in derivatives last year or the year before with a number of different parties. Oftentimes, that means opening accounts offshore.

Oftentimes that means just, you know, opening accounts with, crypto native firms that may not match the kind of profile that they're looking to work with. The desire to have this one stop where they come to BitGo, we are their counterparty, they know who we are, they've been through our insurance, they've been through our SOC 1, our SOC 2, and all of our regulatory analysis, and now they're ready to do these activities. You're right. They would've participated before. They just didn't have quite the right partner. And they're very happy to have BitGo helping.

In the interest of time, we ask that you please limit yourself to one question only for the remainder of the Q&A. Your next question comes from the line of Chris Brendler with Rosenblatt. Your line is open. Please go ahead.

Hi. Thanks, good afternoon, guys. Just wanted to dig a little deeper on the derivatives business. Obviously it's still early days, but a good start for that business. I just wanted to know, you know, as you think about the impact on the net margin there, is it safe to assume that the increase you've seen there is the majority of the increase you've seen there, or maybe all of the increase we've seen in that net capture rate has been due to the addition of derivatives revenue without a denominator impact? Can you talk at all about, you know, how you expect that business to contribute in the second quarter? I also had one follow-up on the Stablecoin-as-a-Service business.

Just, you know, sort of more detail on the growth in partners there and how the book will look as you kind of grow away from just having the World Liberty. You know, how significant are the non-World Liberty assets expected to be as you progress through the year? Thank you.

Thank you, Chris. Ed, anything to add?

Yes. The take rate or the margin that we saw during Q1, as we referenced, was benefiting from the net reporting of derivatives. If you just look at the spot business, it's very consistent to what we experienced in Q4. There, those margins haven't varied very much. We continue to experience that into the future. As we get more and more of the derivative trades, that will hopefully help influence our net take rate much higher to the future.

On the stablecoins, I'm not sure how to quite answer it. We do have some clients that we can't preannounce. It's unfortunate. We can't announce clients that are not ready to be announced yet. Unfortunately, I'm going to have to ask you to stay tuned. On the I guess one thing I didn't mention, you probably have seen it, this last quarter, we did launch what we call our Mint and Burn Center. It's a place where all of our, you know, 5,600 clients can mint and burn directly in the assets that are straight from BitGo. We've got partnerships. You know, the intention is not to limit it to just the BitGo stablecoins. You can convert between stablecoins all kind of right there.

Additionally, you can do it programmatically, so it's super easy. If you've got your agentic bots running, they can completely through API do these types of conversions as well. I think, there's probably more agentic announcements that have happened so far than than real meaningful deployments. We do see this as an important part for the future.

Your next question comes from the line of Dan Dolev with Mizuho. Your line is open. Please go ahead.

Hey, guys. Really nice results here. Congrats from us. I have a question on the bank and trust. BitGo now holds bank and trust, national bank charter from the OCC. This puts you, in our view, in a pretty exclusive category amongst crypto native firms. Maybe beyond the obvious trust and compliance signaling, what does the charter concretely unlock in terms of new revenue lines? Thank you.

Thanks for asking. Actually, by the way, one thing I'd like to impress upon folks that may not be aware of kind of BitGo's history, I think we might be the first OCC charter bank that converted in a day. You know, usually what happens is, there's a lot of people that are in the application process with the OCC. Usually what happens, you get a conditional approval, then it can be like nine, 12, 18 months while you go and build the necessities fee at the OCC level of a bank. In BitGo's case, we were conditionally approved. We had to write a check to fill the regulatory capital, the next day we were operating. You know, doing these activities is something we've been doing for a long time.

To answer your question, the reason that's important is because, you know, when we built, you know, BitGo Trust Company out of South Dakota back in 2018, it was pretty limited in scope of what it could do. I mean, all we wanted to do was to be able to kind of hold these assets in a fiduciary manner, in a way that was bankruptcy remote, that was safe for our clients, our institutional clients to understand. Every time we wanted to do something new, it was, like, more licensing, it was more updates to the business plan, working with the regulators. As we went into the OCC process, you know, we put everything in there.

From trading to staking to, of course, custody, et cetera, these are all things that the regulator is familiar with in our business. It's part of our business plan that the OCC has worked with us on. By the way, they've been great, really appreciative of their efforts there. Overall, we feel like we've got the best standing with that OCC charter and the business plan that's approved in there. It's pretty all-inclusive. I don't know if you had a particular area that you wanted to drill into, but I mean, look, obviously the services that we have up on top of custody already, those are where we're growing and this all grows towards prime brokerage.

Your next question comes from the line of Cassie Chan with Wells Fargo. Your line is open. Please go ahead.

Great, guys. Thanks for taking my question. I just wanted to ask, you know, it seems like the number of clients continued to grow and ticked up again this quarter. How, if at all, have the profile of these clients have changed in terms of AUM, or are they actually using, you know, multiple products in addition to custody right from the start now? Just curious if that's evolved as well. Thank you.

Thanks, Cassie. Well, as I mentioned earlier, look, we have a lot of crossover between our services for our clients. That continues to do well for us. We should probably measure it for the next reporting period. Maybe we'll talk about it next time more. It's all, I think, been positive. The profile of the client is changing in terms of we have this whole new addressable market, which is the traditional financial firms coming to BitGo.

Also have some announcements here that are not yet announced yet, but deals that are already signed in ink, which you will be hearing about, I think, in this quarter, which are exciting from firms that, you know, just one year ago would not have been listed in any type of crypto or digital asset related product. We are seeing that shift. I do think clarity remains the next, I don't know if I wanna call it a hurdle, maybe the next graduation point where a number of maybe the more conservative firms will also be looking and solidifying their digital asset plans. Right now it seems like everybody's growing, and you can see there's a heated race among the new entrants to try to be fastest and the best.

I think that is creating a bit of FOMO among those players that have not been in digital assets yet, and we are seeing all of those and all of those RFIs and all of those RFPs.

Your final question comes from the line of Stephen Glagola with KBW. Your line is open.

Hey, hi. Thanks, Mike, for the question. Can you unpack more on some of the prepared remarks around how are you guys are thinking about balancing the reinvestment in strategic growth on the initiatives around, you know, product, platform, regulatory capability that you called out, while also driving operating leverage for, you know, sustained, positive, and growing EBITDA over time? Thank you.

We've been through, I think, three or four kind of up and down cycles in Bitcoin over the years. You know, sometimes these down cycles are the best times to be building. Especially, you know, AI is absolutely helping us on the build. We don't see any need for, like, additional costs of any material type. Of course, you're always watching to see, you know, where are the costs of the business. We did have one-time expenses around, you know, the IPO itself and some legal costs that are associated with that. I think those were typical. For the most part, like we're building. I think there is a strong demand for this tokenized equities component and, you know, being first.

You know, one of the things we have is I think the broadest support of L1s and L2s of any major custodian, certainly much larger than Coinbase and Anchorage. Staying ahead there does require, you know, that we continue to build. We will continue to build there. Of course, we're always watching the bottom line. We wanna make sure that we are building a healthy business. I think that we're well within those parameters right now. As the market exits its bear cycle, I think you're gonna see real wins on all the economic measures out of the build.

We have reached the end of the question and answer session. I will now turn the call back to Mike Belshe for closing remarks.

Thanks everybody for joining us today. To close, I just want to come back to three points. First, underlying monetization has held up better than the gross revenue presentation would suggest. We are encouraged to see our team launching our derivatives trading products as we talk about our high overall margin and take rates across digital asset sales, staking and Stablecoin-as-a-Service are great. Second, most importantly, we continue to strengthen the business itself. We launched new capabilities, expanded business lines, we added clients and partners, we advanced the stablecoin infrastructure and continued investing in the people and the platform that we believe will drive long-term benefits and growth. That's the business we're building, and it's the lens through which we believe investors should evaluate our progress as well.

Finally, BitGo remains uniquely positioned as the institutional-grade digital asset infrastructure platform, secure, regulated control layer for digital assets and all the new entrants see that capability. Our advantage is the combination of regulatory standing, security architecture, and the breadth of capabilities that we provide within a single integrated platform. We're operating in a large and evolving market, and we continue to see encouraging demand across all areas of the business. Importantly, while reported asset values were impacted by lower digital asset prices during the quarter, you know, the normalized assets on platform and normalized staked balances continue to grow meaningfully, which we believe will drive upside in our model as the digital asset prices recover. Thank you, everybody.

This concludes today's call. Thank you for attending. You may now disconnect.

Hello, everyone. Thank you for joining us and welcome to the BitGo Fourth Quarter and Full Year 2025 Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Baylor Myers, VP of Corporate Development. Please go ahead.

Good afternoon. Thank you for joining us. Our remarks today will include forward-looking statements, including those regarding our future operating results and financial condition, such as our outlook for the next year, our business strategy and plans, market growth, and our objectives for future operations. Actual results may vary materially from today's statements. Information concerning risks, uncertainties, and other factors that could cause these results to differ will be included in our SEC filings, including those that are stated in the Risk Factors section of our annual report on Form 10-K for the year ended December 31st, 2025, and in our other filings with the SEC. These forward-looking statements represent our outlook only as of the date of this call. We undertake no obligation to revise or update any forward-looking statements. Additionally, the matters we'll discuss today will include both GAAP and non-GAAP financial measures.

Reconciliations of any non-GAAP financial measures to the most directly comparable GAAP measures are set forth in our earnings press release. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, GAAP measures. Joining me today on the call are Mike Belshe, Founder and CEO, as well as Ed Reginelli, our CFO. With that, I will now turn the call over to Mike.

Thank you everyone for joining BitGo's first earnings call as a public company. Since this is our first earnings call, I'm going to give a little more background on BitGo than we will going forward. Some of you may have heard this before during the IPO process, so thank you for your patience as we go through it, but I wanna make sure we're all starting from the same place. When we founded BitGo over a decade ago, we wanted to create a company that could meaningfully contribute to accelerating the transition to a digital asset economy. At BitGo, we believe that digital assets are already fundamentally reshaping the financial system and are gonna continue to do so. The ongoing announcements and news from all major traditional firms, from Fidelity to Morgan Stanley to SoFi, demonstrate that this is true.

Since BitGo's inception, we've been building for a future where all assets will be digital. Early in my own crypto journey, it became clear that the infrastructure to support the shift to digital assets was nonexistent, and the ecosystem was incredibly immature. Established financial institutions didn't have a compliant framework, secure custody, or even institutional-grade security solutions to rely on. We set out to build the technology to provide this institutional-grade infrastructure, which could elevate digital assets to a higher level. The product we created is now the industry standard, multi-signature threshold MPC wallets that protect against both theft and loss, and this is what BitGo was founded upon. While other early participants built retail products, we established our track record for building institutional-grade infrastructure. In 2014, we introduced enterprise policy controls to digital asset wallets.

In 2018, we launched the first U.S. trust company purpose-built for digital assets. We expanded to prime services and liquidity in 2020 and became the first to support qualified custody under New York DFS framework in 2021. We built a globally regulated platform spanning the U.S., Europe, Asia, and the Middle East. As you're probably aware, we recently received our national bank charter under the Office of the Comptroller of the Currency, OCC. That made BitGo the first public federally chartered digital asset infrastructure company. We've scaled our business model to support over 1,700 assets across thousands of institutions and over 1 million users. Through these accomplishments, we've continued to differentiate BitGo in the broader digital asset industry. To start, we operate purely as infrastructure.

We do not manage exchanges, we do not compete with our clients, nor do we have the same kind of exposure to digital assets that retail platforms do. We exist to provide security and compliance that empower institutions to participate in the digital asset economy. Our institutional client base is investing in crypto for the long term and has proven itself much stickier and less impacted by short-term market cycles than retail users. It's also important to note that we didn't enter this industry during or because of a hype cycle. We were built and battle tested through many market cycles, fulfilling a growing and enduring need for our clients. Bottom line, BitGo today is the digital asset infrastructure company, powering institutions, platforms, and nations redefining the global economy, and we stand apart as the premier infrastructure provider.

You can think of us a bit like a hyperscaler for digital assets. We're a one-stop shop, multi-product platform with institutional-grade infrastructure and mission-critical reliability that our partners can build and scale on regardless of where that takes us globally. We believe that no other company can provide the streamlined and comprehensive suite of solutions that we do. Institutions have been forced many times to piece together providers, opening themselves up to operational risk and increased inefficiency. Our vertical platform was built with security as the foundation and provides wallets, qualified custody, trading, staking, lending, settlement, and compliance tools all within one unified, scalable infrastructure. Starting with wallets, these are developed in-house and integrated across our platform, driving client stickiness.

We operate regulated trust entities globally and provide qualified custody under the most stringent and rigorous regulatory frameworks in the world. Our Go Network allows clients to settle assets 24 hours a day, seven days a week directly from cold storage, which is a significant differentiator. The liquidity services we offer enable institutions to trade, stake, borrow, and lend without commingling assets. We're proud to have one of the largest institutional staking platforms in the world. Finally, we also provide infrastructure-as-a-service capabilities. This includes token management, stablecoin issuance, and Crypto-as-a-Service. To briefly recap our most recent results, I'm proud of the impressive revenue growth of 424% we achieved for the full year, driven primarily by digital asset sales and gains in subscriptions and services, partially offset by a decline in staking revenue due to digital asset prices.

Obviously, BitGo is a long-term believer in digital assets, and we evaluate our business performance independent of short-term price volatility. Rather than solely citing the USD value of assets on platform, which fluctuates with market prices independent of our business activity, we'd like to also share coin unit growth and price-normalized growth that more directly reflect BitGo's performance rather than the market's pricing. On a unit basis, BTC on platform grew 8% year-over-year, and our top five assets by volume grew 3% year-over-year, growth driven entirely by client inflows, not market price movement. On that normalized price basis, assets on platform grew 16% year-over-year. Assets staked declined 7% on the same basis. This is a trend we continue to monitor as certain tokens unlock over time.

We believe these normalized figures represent BitGo's strong performance in an otherwise very volatile market. Moving on to our growth strategy. Our platform operates at the center of the digital asset ecosystem with each new integration, new asset, and new user making BitGo more useful, more defensible, and more essential. When protocols, fintechs, and issuers build on BitGo, they bring assets and transaction volume onto the platform. That, in turn, increases demand for liquidity, staking services, financing solutions, and compliance infrastructure. Growth in assets and flows naturally gives greater engagement across our product suite, and as we expand functionality, whether through new asset support, prime capabilities, or infrastructure services, we increase cross-sell opportunities and deepen our client relationships. The result is a scalable platform model that underpins our growth strategy, driving market expansion, client growth, and product expansion that reinforce one another, contributing to revenue growth over time.

Now starting with market expansion. We're actively replicating our product in markets globally to ensure that we can serve clients wherever they operate. In 2025, we made more regulatory progress in international markets, notably expanding our license in Germany and becoming a custody broker in Dubai. At the domestic level, our OCC license supports our expansion in the U.S. and allows us to provide digital asset services to clients across all 50 states under a single national regulatory framework. In 2026, we are actively expanding into additional regions with several new licenses and registrations already in progress in India, South Korea, the U.K., and the Cayman Islands. We see the biggest opportunity for expansion this year in the APAC region, which represents a significant share of global crypto liquidity and has already established regulatory frameworks for digital asset custody and infrastructure.

These markets are seeing increased engagement from banks, asset manager, and family offices exploring digital assets, stablecoins, and tokenized financial products. Because BitGo already has a strong presence across several of these hubs, we're well-positioned to support institutional clients and adoption as it accelerates demand for regulated client custody, settlement, and prime services. On to client growth. We've seen tremendous growth in our client base over time due to the number of factors. In 2025, we saw benefits from expanding internationally, which has helped us win more global clients. In 2026, we are focused on expanding BitGo's role in institutional market infrastructure by increasing our market share in OTC and derivatives while continuing to build next-generation wallet capabilities.

At the same time, we're also investing in agentic wallet infrastructure that enables programmable, automated interactions with digital assets supporting more sophisticated trading, settlement, and treasury use cases for institutional clients. Finally, product expansion. During the first half of 2025, we launched our Stablecoin-as-a-Service and our Crypto-as-a-Service. We started as the issuer for USD1, which has grown to over $5 billion in market cap since its launch, making it one of the fastest-growing stablecoins of all time. We also announced recently that SoFi selected BitGo's Stablecoin-as-a-Service platform for their SoFiUSD stablecoin. Further, we started off 2026 with the launch of our derivatives business, which we believe substantially improves our trade offerings for 2026. So far, we've seen roughly $3 billion in notional trading volume and over $3 million in revenue.

We also see opportunities to expand our lending and trading offerings as well as entering tokenized equities as real-world asset tokenization has surpassed $25 billion as of July 2025. Looking ahead, we believe growing regulation of the digital asset industry in the U.S., as evidenced by the passage of the GENIUS Act and ongoing discussions on the CLARITY Act, positions us well to increase our total addressable market. As more regulation is in place, we expect to see more traditional firms come to us looking to get involved in the digital asset industry with solutions that are secure and safe. We're seeing this now with our ecosystem team in support of the Canton Network, a blockchain designed for traditional finance, where BitGo has been the sole qualified custodian for some time. All these efforts will help power our product expansion strategy.

We also secured exciting partnerships in 2025 that meaningfully raised our profile, including with Fidelity and Bitmain. We started 2026 off strong. We're supporting InvestiFi with nationwide digital asset investing for banks and credit unions. We're selected for custody and staking with Fidelity's Solana ETF as well as being named for their Bitcoin ETF, and we are accelerating our global ETF partnership with 21Shares. This is a particularly exciting opportunity as we've seen ETF client count grow over 200% year-over-year. Finally, we can't ignore what's coming with tokenized equities. We see several models emerging to tokenize traditional U.S. equities, and all of them require the infrastructure that BitGo has been building. We're proud to be the custodian on the Figure platform, which launched earlier this year to directly issue equities on blockchain through Figure's OPEN network.

To conclude, I'm proud of our achievements in the fourth quarter and full year 2025, and I'm incredibly excited about the start of our journey as a public company. Being public adds another layer of rigor to our business as we continue to operate with transparency and security. We also believe that access to public markets reinforces BitGo as the steady state infrastructure player for institutions. I'm confident BitGo is uniquely positioned within the crypto industry as the digital asset infrastructure company, and we have the right strategy in place to drive growth and deliver significant value for our shareholders. Finally, I wanna thank the BitGo team for their continued hard work and dedication to our company and mission that's made executing our IPO and achieving our strong financial results possible. I now turn it over to Ed.

Thank you, Mike, and thank you all for joining us today. Before reviewing our financial performance, I'd like to build on Mike's discussion of BitGo's growth drivers and connect it to how we generate revenue. BitGo makes money through five revenue drivers. Digital asset sales, staking, subscriptions and services, Stablecoin-as-a-Service, and interest income. Starting with digital asset sales, we offer a secure, seamless liquidity solution that simplifies the complexities of digital asset trading. Our revenue reflects the total trading volume generated when the company acts as principal, executing trades on behalf of clients through relationships that BitGo has with various third-party liquidity providers and exchanges. Second, we earn staking revenue by participating in Proof of Stake blockchain networks, where we validate blocks using either our proprietary staking technology or by partnering with our network of 25+ leading third-party validators.

In exchange for providing clients the ability to stake their assets, the company earns blockchain rewards in the form of the network's native tokens. Third, subscriptions and services revenue encompasses our core technologies, wallet services, cold storage, development fees, lending services, and Crypto-as-a-Service. This service is very sticky and provides stability and predictability in our financials because our technology is highly integrated into our clients' operations. This relationship provides the opportunity to upsell additional products and services. Fourth, Stablecoin-as-a-Service revenue, which is our newest product offering, launched in fiscal year 2025. This service allows institutional clients to issue U.S. dollar-backed stablecoins using our regulated trust infrastructure. We earn implementation and ongoing service fees for the issuance, reserve management, and transaction processing of white-labeled stablecoins.

Lastly, interest income, which represents interest earned from the company's fiat treasury, earned from deposits in various money market products. While we are not entirely immune to market volatility, our diversified revenue model helps insulate us from fluctuations in digital asset prices relative to others in the industry. In addition, a meaningful portion of our revenue is recurring and subscription-based, and our performance is driven by a broader set of factors beyond asset prices, including interest rates, industry sentiment, and continued investment in emerging ecosystem and products. Finally, our focus on institutional clients results in a stickier customer base, especially through periods of market volatility. Moving on to our results. Fourth quarter total revenue of $6.2 billion increased 440% year-over-year. For the full year, total revenue of $16.2 billion increased 424% year-over-year.

Growth in both periods was driven by higher digital asset trading activity, increased subscription and service revenue, and the launch of our Stablecoin-as-a-Service offering, alongside deeper engagement from existing clients and continued expansion of our client base. This growth was partially offset by a decline in staking revenue due to lower digital asset prices. On our key operational metrics as of the end of the year, number of clients grew 104% year-over-year to 5,322, and number of users expanded 14% year-over-year to 1.2 million users. Assets on platform of $81.6 billion decreased 9% year-over-year, while assets staked of $15.6 billion decreased 51% year-over-year. These declines were driven by lower digital asset prices.

To reiterate what Mike noted earlier, excluding the impact of price by applying consistent pricing across periods, assets on platform increased 16% year-over-year, while assets staked decreased only 7%. On a product level in the fourth quarter, digital asset sales of $6.0 billion increased 531% year-over-year. For the full year, digital asset sales were $15.6 billion, increasing 513% year-over-year. Growth during both periods was driven by higher digital asset trading activity resulting from the continued growth of our OTC services, the expansion of trading pairs on the platform, increased activity from existing clients, and an expanding client base. With digital asset sales, there are corresponding transaction costs.

In the fourth quarter, digital asset sales costs were $6.0 billion, resulting in a take rate of roughly 24 basis points. For the full year 2025, digital asset sales costs were $15.5 billion, with a take rate of approximately 21 basis points. Staking revenue in the fourth quarter of $58.3 million declined roughly 64% year-over-year. Full year staking revenue of $385.0 million decreased 16% year-over-year. Decreases across both periods were primarily driven by volatility in digital asset prices. Similar to digital asset sales, staking revenue includes corresponding fees. In the fourth quarter, staking fees were $55.4 million, resulting in a take rate of roughly 7%.

For the full year 2025, staking fees were $346 million, with a take rate of approximately 11%. Subscriptions and services revenue in the fourth quarter of $39.3 million increased 75% year-over-year. Full year subscriptions and services revenue of $121.5 million grew 57% year-over-year, primarily driven by an increase in the number of clients, growth in development fees, and higher lending activity. Custody and wallet solution clients increased to 1,534, with an average quarterly spend of $11.1 thousand per invoiced client. In addition, we exited the year with a lending book of approximately $207.4 million, representing an increase of 114% year-over-year.

Stablecoin-as-a-Service revenue was approximately $26.6 million in the fourth quarter, with a take rate of approximately 20 basis points on assets under management. For the full year, revenue totaled $66.7 million, with a take rate of approximately 16 basis points on assets under management. As a reminder, this service was launched in fiscal year 2025. Finally, interest income was $0.5 million in the fourth quarter, up 34% year-over-year. For the full year, interest income totaled $1.5 million, up 63% year-over-year, primarily driven by increased fiat treasury investments. Total expenses were $6.2 billion for the fourth quarter and $16.1 billion for the full year, principally driven by digital asset sales costs, staking fees, and stablecoin sponsor fees, as referenced earlier.

Fourth quarter compensation and benefits were $27.9 million, up roughly 19% year-over-year, and $104.2 million for the full year, up 30%, driven largely by continued investment in our engineering and commercial teams. Fourth quarter general and administrative expenses were $24 million, up 29% year-over-year, and $76 million for the full year, up 44% year-over-year, primarily reflecting increased third-party costs associated with our IPO initiative, higher legal expenses, and variable costs tied to customers and revenue growth. Net loss in the fourth quarter was $50 million compared to a net income of $129.4 million in the prior year.

Net loss for the full year was $14.8 million compared to net income of $156.5 million in the prior year. Losses in both periods were primarily driven by unrealized losses on the company's digital asset treasury due to falling digital asset prices. Fourth quarter adjusted EBITDA of $12.1 million increased 188% year-over-year, while full year adjusted EBITDA of $32.4 million grew 904% year-over-year. We believe we are in the early stages of growth, and our priority is to accelerate revenue while expanding our product capabilities and global footprint. We will continue to make disciplined, long-term investments to support these objectives, even if they temper near-term profitability.

Fourth quarter diluted loss per share was $1.03 compared to prior year earnings per share of $1.07. Full year diluted loss per share was $0.38 versus earnings per share of $0.90 in the prior year. Moving on to our balance sheet. Our balance sheet remains strong as we ended the year with $318.5 million in total equity. Our balance sheet includes a Bitcoin treasury strategy under which we retain Bitcoin received or acquired in the ordinary course of business, and at times allocate cash flows to purchase additional Bitcoin. We remain confident in this strategy, and our long-term approach remains unchanged. Looking ahead, we are committed to a balanced capital allocation strategy over the long term.

As we invest to grow the business, we will remain disciplined in the way we allocate capital and operates as a business in order to minimize risk and maintain liquidity. As of December 31st, 2025, total diluted shares outstanding were 119.9 million shares. As a reminder, we issued an additional 11 million shares in our January 2026 IPO. We hold no long or short-term debt on our balance sheet, since any borrowings are primarily used to fund our lending business and are on a demand basis. Now turning to expectations for the first quarter of 2026. We've been operating as a publicly listed company for about 10 weeks, and while the quarter is not complete yet, we wanna be transparent and share insights into the current market conditions.

The macro environment in the fourth quarter was challenging, and those conditions have carried into the first quarter. Digital asset prices have remained under pressure, and geopolitical tensions in the Middle East have added additional volatility. These macro conditions, along with the decline in digital asset prices, have a direct impact on our revenue streams. We are not immune to these dynamics. With that said, our underlying unit-based metrics remain healthy, our client pipeline is strong, and the structural demand for our platform remains intact. As Mike noted, we are executing on our 2026 growth strategy and continue to see strong growth in our client base and pipeline. In our trading business, we expect strong year-over-year growth in the first quarter compared to Q1 2025, supported by the momentum built during fiscal year 2025. We launched our derivatives business in the first quarter of 2026.

As spot trading volumes have declined from the fourth quarter of 2025 amid lower digital asset prices and market volatility, client interest in derivatives has increased as a way to generate yield and provide market downside protection. Please note that a portion of our existing spot trading activity is transitioning to derivatives. While spot trading volumes are reported on a gross basis, derivative trading is reported on a net basis. Other areas to highlight include continued growth in our Stablecoin-as-a-Service business, where assets under management exceeded $5 billion during the first quarter, alongside the addition of new notable clients utilizing the service. We expect solid year-over-year growth in subscriptions and services in the first quarter compared to Q1 2025.

However, revenue is expected to be lower than the fourth quarter of 2025, primarily due to a decline in development fees, partially offset by strong recurring revenue base from custody and wallet services and increased lending business. Staking fees, which are most directly impacted by digital asset prices, are expected to be significantly lower in the first quarter compared to Q1 2025 and down sequentially from Q4 2025. However, we anticipate a meaningful improvement in take rate relative to Q4 2025, driven by the onboarding of a significant token. BitGo has been around since 2013, and we have experienced many different market environments over the years. I remain confident in our ability to weather the current dynamic macro environment as our near-term opportunities are strong, underpinned by a deep client pipeline and several active projects.

With a constructive and evolving regulatory backdrop, we continue to see strong momentum and remain positive on the digital asset industry as a whole. To close, we are pleased with our strong fourth quarter and full year 2025 results, which position us well to continue executing on our long-term growth strategy. We remain confident in our ability to drive client growth, asset growth, and product expansion, and to deliver long-term value for our shareholders. Thank you for joining us today. I'll now turn it over to the operator for our Q&A session.

We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from George Sutton with Craig-Hallum. Your line is now open. Please go ahead.

Thank you, and congrats on your first quarter. I wanted to ask on the CLARITY Act, Mike, in terms of, obviously we're starting to get some sense of what that might look like. I'm just curious if we could use your informed thought process on what you'd like to see or what you're expecting to see relative to how it'll impact your business.

Hey, George. Thank you for the question. Let's see. We're excited to see CLARITY pass. We hope that it comes about. I know there's been a lot of debate in the industry about, in particular, some of the re-litigation of stablecoin points. From my view, most of the work with CLARITY actually comes in the next 18 months after CLARITY is passed, because what it sets up is, okay, CFTC can do most of the work instead of the regulation, and that's gonna really determine the bulk of what matters. We hope that it passes soon. I would take it in almost any form. I don't think we should be worrying about the interest that's being returned or not returned.

I think we need to get to the next stage, which is getting this fully enacted and legislated so that we don't have to worry about whether we have a full path forward from Congress. We're very much in favor of getting CLARITY passed, and I think we're at the finish line.

There was a lot of reference to a very strong client pipeline. I wondered if you could just give us any more sense of what you're seeing from a pipeline perspective, and how much of that is TradFi, focused?

Great question. Glad you asked. Look, I mean, you're reading announcements almost every week, Morgan Stanley, Citibank, et cetera. All of these large major players were not participating in digital assets just a short 18 months ago. With infrastructure, I think you also know that it goes through a pretty significant amount of process. It goes through an RFI, then it goes through some iterations, then to an RFP, and then finally to a close. You know, we can't announce everything that's done until the client wants to announce it. The pipeline has been super strong. In fact, if anything, you know, I just wanna make sure that we have enough sales team, you know, out there to make sure that we're connecting with everybody that we need to.

We've been growing the sales team over the last, you know, three-four months. There's a lot of work out there.

Great. Thanks. Appreciate it.

Thank you.

Your next question comes from Brett Knoblauch with Cantor Fitzgerald. Your line is now open. Please go ahead.

Hi, guys. Thank you for taking my question. As we look at maybe the broader crypto space, obviously there's some weakness here. You know, in your prepared remarks, you guys said you are a bit different of a platform and business isn't entirely correlated to where digital asset prices are going, but then also alluded to the fact that lower digital asset prices, you know, will weigh on some of the segments. Could you maybe frame it a bit better? Like, which segments are you expecting kind of be pressured with, you know, call it broader crypto down 20% year to date, versus which segments do you think can grow strongly irrespective of, call it the macro markets for crypto?

Yeah. Thanks, Brett. Good to hear from you again. Let's see. I mean, in general, I don't wanna sugarcoat it, right? Like, the asset prices being down, it affects everybody in the sector. You know, I think we said, like, you know, during the IPO roadshow, I will say it again, like, you know, BitGo has some amount of correlation to digital asset prices, and you kind of see it in many aspects of our business. We've got a few that are less correlated. One of them is stablecoins, of course. Those are not directly correlated to the crypto prices. The other one is trade volume, which, you know, we saw a lot of trade volume in up and down markets. Those volumes will increase.

It's not a direct correlation to just the asset prices, but of course it is a direct correlation to what's going on in the space broadly. Lastly, we do have subscription service, subscriptions as part of our services, so sometimes people are buying a subscription which caps a monthly minimum, which includes some amount of custody, some amount of trade volume, et cetera, transaction volume, all under a constant price. It's a little bit less volatile than the digital asset prices.

Awesome. Thank you. Then maybe just as a follow-up, you mentioned like agentic wallets, which I think is a really interesting area and kind of a hot topic right now. How do you or how are you guys kind of positioned for that with respect to your subscription services product? Is it a different bundle? Is it included in maybe the same package? Just broadly, how should we think about maybe just agentic wallets and BitGo together?

Yeah. Great. Well, actually, we think the product offering that we have is really well suited actually for all of the agentic needs and capabilities. We got our MCP Server up, by the way we've seen it, like where AI picks up on that and is able to help put together products and code on it. We're watching that carefully to make sure that we fully understand exactly what clients are looking for, and we react to that as quick as we can. In terms of why our products are kind of designed for this, I mean, when we started doing our institutional-grade wallets back in the beginning, I mean, first you've got the basic security components, which is how do you have no single point of failure? How do you have, you know, protection against loss?

The next thing you're doing is you're making it work for an institution, a business, a group of people, right? There's multiple people on the wallet. There's policy that you can set. You can say, "Hey, these types of accesses need these permissions. These other types need these other permissions." You can do it risk-based. This turns out to work really well with agents, right? The agents are effectively like other participants on the wallet, and you can actually do it in both directions. You can both have the agent spending money on your behalf and then going through your controls to approve, and also you can do the reverse, where you're doing the spending of money, and then the agent is kind of watching that.

If you have a large organization and maybe you've federated out different parts of your digital assets to multiple parties, that agent can put other controls on it that you can watch, and then they'll decide whether or not to approve. I think everything we've built is like perfectly in line for agents. If you are looking for an agentic wallet, please try out BitGo, give us feedback. We are always iterating and improving.

Awesome. Thank you, Mike.

Your next question comes from Joseph Vafi with Canaccord. Your line is now open. Please go ahead.

Hey, guys. Good afternoon. Congrats to you and to BitGo on getting to this stage of the journey in the company's evolution. Maybe just staying on the agentic for a second. You know, I've been kinda noodling, you know, what's gonna move the industry forward other than just spot prices and I think everyone's been thinking that CLARITY could be a big driver. You know, agentic AI combined with, you know, programmable money and assets and blockchain are kinda all coming into view here. Do you think that agentic could move the industry forward faster than CLARITY? I'm just trying to get a view from your point of view. A quick follow-up. Thanks.

Well, thanks, Joseph. I think it's a little bit apples and oranges. I think they'll move in different speeds. First off, on CLARITY, I didn't quite say this in my previous answer. You know, having done the roadshow, having spoken to all kinds of potential investors, many of whom have not been in the digital asset space very much, you know, kind of prior to the unlock of 2025, all of those guys are looking for CLARITY to kind of be the permission. That this is not just something where, like, under the Biden administration, you have one set of regulators, and then under the Trump administration, you have a different set of regulators, and under the next administration, we're gonna have yet a third set of regulators, each with their own agenda.

CLARITY puts a pathway forward where Congress has said, yes, they support this, and they've asked the regulators to officially take on that thing. I believe there's a significant amount of traditional finance that is very much waiting on CLARITY. And if CLARITY doesn't come through, you know, those folks may be kind of in and out as the market goes up and down. So that that's a risk. Let's see. On the agentic side, I think we're going through an early phase where people are learning how to use agents. You see some of the almost mockery that happens where we're all learning it, we're so excited about it, and yet we're not quite as productive as we hope that we will ultimately be.

I think the innovation and this kind of exploration wave is just starting. Clearly, there are going to be very a lot more robots than there are humans. A lot more AI brains than there are human brains. I think it's only natural that you will see agents operating on our behalf in all kinds of ways. We're in the early days of figuring out how those get deployed. Both CLARITY will help us, and agents are gonna help us grow. I think they're almost just different paths.

All right. Thanks for that color, Mike. You know, any other thoughts, Ed, here? It sounds like take rate may go higher on staking due to adding a new token. Any other color that you may be able to provide there? Thank you.

Yeah. On the.

Here's Ed.

On the staking side, we did add a significant token. Canton was the asset we added, and that has brought a tremendous amount of margin to the product line. Also on other product lines, including our trading business, we referenced earlier in the conversation about the introduction of derivatives, and that has been really successful in Q1. That's also gonna help improve margins. Then, as we continue to grow our overall customer base, we'll get incremental revenues from subscriptions and services. The difficult part of the business right now from a revenue perspective, 'cause it's so tied to digital asset prices, is our staking product line. We, you know, still are very confident in that overall product line and expect that to continue to grow.

We'll grow adding new assets to the platform, more units, and hopefully we see a recovery in prices.

Got it. Thanks very much, Ed. Thanks, Mike.

Your next question comes from Brian Dobson with Clear Street. Your line is now open. Please go ahead.

Hey, thanks very much for taking my question, and congrats on your first quarter. You know, maybe we can take a step back and a longer view. As you're contemplating, say, the next year or two for the business, which global catalyst do you expect to be most meaningful for the company and across the sector at large?

Sure. Well, you know, there's a lot of questions about, like, digital asset prices. One thing that we're trying to help describe, and always open to feedback on this as well, is how do you differentiate how the market performs versus how BitGo performs? The reason we were citing earlier, if you take a look at, you know, assets under custody from a normalized price perspective, you can either do it normalized at the beginning of the period or the end of the period. It doesn't really matter. You know, our assets under custody grew 16% during this year, irrespective of the asset price on the market. Hopefully that indicates we're doing something right. It's not easy to add billions of dollars of new asset into custody.

Then where is that next thing gonna come from? Look, I think mostly it's that the TAM is growing. So the regulatory unlock of 2025 started with just what was now legal in the U.S. to do. The second unlock is the increase of participants in the space. Kind of back to that comment earlier about pretty much every traditional financial firm has a significant investment in digital assets going right now. You've heard me say this before, you know, Larry Fink of BlackRock says every asset, every bond, every token's gonna be digitized. I think there's an increasing number of people that believe that. We just had Paul Atkins this week also saying that within two years everything's gonna be digital.

This is just a huge growth in the total addressable market for us, and we think as an infrastructure provider, we will be able to serve those clients, whether you're talking about self-custody, whether you're talking about custody, whether you're talking about financial services on top.

Great. Thank you very much.

Thank you.

Your next question comes from Pete Christiansen with Citibank. Your line is now open. You may go ahead.

Thank you. Good evening. Congrats, Mike and Ed, Baylor, on the successful IPO. I wanted to ask about attach rates. You've had some really impressive client growth over the last couple quarters. I'm assuming a lot of that is custody-led. Can you just give us a sense of how you're seeing the attach rates to some other service in particular, maybe like prime brokerage, how you're seeing that trend? I guess as a follow-up, I wanna double tap on P/B a little bit. How should we think about BitGo's competitive moat there? Is it, "Hey, we've got, you know, best in class capabilities and it also stretches onto our custody capabilities," what have you, but there's other players out there that may have bigger balance sheets?

Just help us understand what is the competitive strategy there to grow some of these other ancillary services. Thank you.

Yeah, sure. Thanks, Pete. I'll take part of this and I'll hand it to Ed for the attach rates afterwards. Look, I mentioned custody, and I always kind of hate mentioning custody because I don't want people to think of us as just a custodian by any means. You know, we've had significant attach rates across the product lines. I think Ed's got the official stats, but we're really trying to move all of the revenue up the stack, and so that's why we care a lot about the trade volumes increasing significantly on BitGo. Increasingly we hope to move as many participants up there.

I think when you're helping people make money, whether it's by trading, whether it's by staking, or by using their assets, it's a much stronger position to be in. As it relates to prime brokerage, look, the lending book is larger than it's been in the past. The trading volumes are up. The culmination of these two things is where you start to put together and build leverage for your clients. Right now I'd say that we're still increasing kind of these individual services and then ultimately we get to prime brokerage. As the competitive mode, I think the difference is a couple of things. A, we have the foundation at the bottom of the stack, which can actually build on and understand the risk.

A lot of prime brokerage is understanding what are the risks that you're taking, and too much of the early prime variants that came, a few years ago, from various players was not adequately taking into account what the risk that's being taken is. Obviously, if you don't have custody, if you don't have, a solid risk around how you're holding it's difficult to even talk about like the market risk and, counterparty risks that happen on top of it. We have that strong foundation at the bottom. The fact that our trading volume grew so well in the last year as we finally have turned that on, partially just unlocked by the new regulatory environment here in the United States, we think all of this grows. We are differentiated in that we do cold storage for that.

We got a solid foundation for that. We support more coins than anybody. I think we have some stats coming out probably in some press releases soon around just how broad the asset support is. I think when you look at other players, they're probably gonna start with Bitcoin, they're gonna start with Ethereum, and look, BitGo supports just a much broader spectrum of products today. Ed, do you have the specific numbers on the attach rates on the various services?

I believe, as of end of last year, about 70% of our revenue generating clients used two or more of our products, and about 50% used three or more. As Mike pointed out, clients are really focused now on yield generating activities, and they would much rather be sharing some of those profits, compared to just paying for standalone services. We'll continue to keep driving customers up our product stack, and we also appreciate that too from the standpoint of increasing our margins. Instead of talking basis points, we're talking percentage points. We're actively trying to move more and more clients to trading, staking, lending and other value-added products that we currently offer.

Thanks. That's impressive. Very helpful color. Thank you both.

Thank you, Pete.

Your next question comes from Edward Engel with Compass Point. Your line is now open. You may go ahead.

Hi. Thanks for taking my question. Could you please talk about the launch of derivatives trading in the first quarter? Looks like it's been a strong start so far, but just wanted to get a better idea of when exactly that was launched and then I guess how you see that ramping throughout the year.

Yeah, sure. Yeah, we're very, very pleased with how it's been going so far. Actually, let's see. Are there limits on what I can say here? Okay, I don't think so. All right. We launched it on January 1st, and one of the things that, by the way, I wanna note. You've got this terrible way of, like, aggregating gross revenue, which includes, you know, gross trading of spot. Then derivatives, of course, is not quite equivalent to trading volume. It's equivalent to the derivatives component, so it makes it hard to tease out. We've seen substantial clients moving from pure spot trading over to derivatives. We've seen multi-billions of trade volume already in 2026, and we just launched it, I guess three months ago.

We think this is where the bulk of our trading volume will be, probably in about another year or so. Very happy to be having this offered to our clients.

Great. That's helpful. Then just to try to sneak one in here, just given that successful launch and then maybe just some of the recent volatility, is there a world where we could see net trading revenue maybe kind of flat Q-on-Q? I know you said higher year-on-year, it's just that one Q is a pretty low base.

Ed, do you wanna take this?

Yeah. We are projecting that our overall gross trading volume will be down on a net basis. We will also be down quarter-on-quarter, but we'll be up substantially versus Q1 of 2025. Q4, we appreciated the benefit of a lot of digital asset trading companies, treasury companies that came to the platform, and we had a tremendous amount of volume through them. What we've seen there is behavior changing. Those same clients are now using our derivative products, looking for yield, looking for market protection. Overall, you know, we are very positive on our trading derivative business and expect that to be a huge driver of our future growth.

That's great color. Thank you, and congrats on being a public company.

Your next question comes from Brian Bedell with Deutsche Bank. Your line is now open. Please go ahead.

Great. Thanks very much, and also congrats on your first quarter here. Very exciting. First question, just on the, you know, going back to some of your comments, Mike, on CLARITY Act and the pipeline, how do you see that progressing during the year? Obviously, you mentioned the, you know, the CLARITY Act can be an unlock for traditional finance firms, and the pipeline's strong coming into Q1, but do you see this being actioned upon relatively quickly if just the act passes, or do you expect more of a lagged response as we go throughout the year? From a revenue perspective, I'm thinking about the custody and wallet component of subscription and services.

We have not seen any slowdown in terms of readiness to adopt digital assets from traditional financial firms. If anything, I'd say it's been just as strong. I think most people had been expecting CLARITY would get passed kind of for over the last three, four months. Maybe the Polymarket would probably tell you exactly what the predicted odds are. Maybe that's come down a little bit, but it doesn't seem to have slowed anything down, and I'm not entirely sure that just because we don't that even if we didn't get CLARITY, I'm hopeful that we will, but even if we didn't, that it would cause a slowdown. It could, but I guess I just don't know exactly. So far there's been no slowdown.

I think it's all positive. Remember, these build-outs take a long time. Like, the decision process for large firms moving into digital assets, the decision alone is six-12 months. After that, there's the build-out, and then there's finally the deployment. Usually when they deploy, they do it kind of on a risk-adjusted basis, where they do a small amount first and then grow it slowly. Because they've already started the process, I think it takes a while before they drop out. I guess we're gonna see exactly how that goes. So far, it's been no problem.

Yeah. No, that's great. Then maybe interesting, you know, press release on this, on the prediction markets venture, and you know, certainly seems like a differentiated way to go about the market. Can you talk a little bit more about that in terms of the OTC platform and how that you expect that to work? Is that going to sit at BitGo? Then just talk about, you know, how you what types of contracts you're creating. It sounds like it's mostly in the crypto, you know, asset class right now and how you're seeing that institutional demand play out.

Sure. I think you're referring to our partnership we just announced with Susquehanna, right?

Yep. Yeah, yep. Absolutely. Yep.

Yeah. For those that may not have seen it, we did announce a partnership with Susquehanna that you can have your assets at BitGo, and then we can, through our OTC capabilities, help you place investments over at Polymarket and Kalshi, and we do that in partnership with Susquehanna. Look, that's just started, so I don't have any positive data, positive or negative, to share with you just yet. We did have a lot of outreach and excitement about it. I think it creates a differentiated way to access these markets that wasn't there before. Look, we're excited to see what happens. Why don't you refresh that one for maybe the next quarterly report?

Yep. Yep. No, fair enough. Thank you.

Your next question comes from Dan Dolev with Mizuho. Your line is now open. Please go ahead.

Hey, guys. Thanks for taking my questions, and also congrats from our end at Mizuho. Really quick question for you. Sounds like Stablecoin-as-a-Service has been a huge success. I think you recently launched it in the first half of 2025. It's already grown to like, you know, a very significant AUM. I think you mentioned $5 billion. So how big could this become? And what are maybe potential new ways to monetize beyond what you're doing today? Thank you, and congrats again.

Great. Thank you for the question, Dan. We started with USD1 last year. We helped them get from zero to fully launched in about six weeks on top of the BitGo Stablecoin-as-a-Service product. It's a modular service, so you can kind of pick and choose some of the components that go into that. We announced just earlier this year that SoFiUSD is going to be built on top of the BitGo Stablecoin-as-a-Service platform as well. I think that'll be the first Stablecoin-as-a-Service platform. They'll probably get to $1 billion each. SoFi is not there yet, but I think it'll be the next one. We think this is a tremendous opportunity. Like, stablecoins are super easy for pretty much everybody in finance to understand.

In terms of payments, it's just better. I know there's some debate that's going on at CLARITY Act, whether or not it gets passed or not. There's a tremendous amount to be done here. As the payment rails change, that changes how people are moving money, you know, locally and internationally, especially. If you ever try to wire money internationally, it's very hard. People are opting to use stablecoins. You're gonna start hearing like, you know, regular people outside of the business talking about, "Hey, I want to use some Tether to send some money to a supplier across the globe." These are real things that are gonna happen. At BitGo, we've got increasing improvements around what we call our mint and burn dashboard, our ability to convert between these stablecoins.

We're gonna have kind of an explosion of different stablecoins available, and people might have some USDC, but they want to move it to USD1. They got some USDT, but they want to move that to SoFiUSD. You know, on the banking side, we haven't even seen the tokenized deposits quite come live yet. If you read up on the SoFiUSD, you can see how they're addressing the combination of both tokenized deposits and stablecoins. I think we're in the early innings here. I think it's gonna completely revolutionize how we're doing payments. I think you're gonna see it used for settlements kind of everywhere. Then that'll carry over, hopefully, into our Go Network, in the coming quarters.

Yep, we agree with that. Well, great stuff. Thanks again.

Thanks, Dan.

Your next question comes from Chris Brendler with Rosenblatt Securities. Your line is now open. You may go ahead.

Hey, thanks, and good afternoon. I'd also add my congratulations on first quarter out of the gate. I wanted to ask about the OCC approval process. I think it's now complete, but, you know, what does that mean for your business, and sort of which areas can you leverage that new charter? It seems like it's somewhat unique as well, so it could be a competitive advantage, at least in the near term. I'd love to get a little cover there. Thanks.

Thanks, Chris. For those that didn't notice, we did get converted over to the OCC National Charter, so it's BitGo Bank & Trust at this point. It's been huge for our business, actually. Now, interestingly, from an operational point of view, you know, we've been ready for this for quite some time. You probably know we operate multiple regulated custodians around the planet. We've had a couple in the U.S. We have Switzerland. We have Germany. We have Dubai. We have Singapore coming hopefully in 2026 in South Korea. We've built a playbook for how you run these that incorporates, of course, all of the U.S. things that you would expect, but also all of the things from other regulatory regions, et cetera.

I think we've got the most robust custodial platform of anybody in terms of, you know, being on top of all the regulatory components. Just being able to call yourself BitGo Bank & Trust, actually, you're speaking the language of traditional finance. You say the word BitGo, it doesn't say bank in it, and people don't quite know exactly what that is. Believe it or not, that does matter. Overall, you can't get a more respected regulatory framework, so it's been great. Of course, it cuts out any ambiguity.

I see a few different states are looking to potentially try to regulate stablecoins in their own way, and we could end up with kind of the money transmission licenses of the states, but now played out for crypto or played out for stablecoins. By having that national charter, we are immune from that. It's very good for our business. It's very good for our clients. I'm proud that it shows that the BitGo team has met the highest standards that are required. One last thing that's interesting, you know, we are a fiduciary for our clients' funds that are held at BitGo Bank & Trust. When you take a custodial duty over 100% reserve accounts like what we do, that's fiduciary.

Interestingly, you know, when you go to roll up to your bank, he's not a fiduciary to you. You know, it's depository. It's a different relationship. We think this is the right relationship for holding on to billions and billions of dollars of assets. Our clients do seem to value it. It's been really good. One last thing. Our Crypto-as-a-Service product has really taken off in 2026 already. We signed more new clients on Crypto-as-a-Service this year than we did all of last year, and we're only three months in. I think the OCC charter had a lot to do with that.

That's fantastic, and I'm really looking forward to seeing how that progresses throughout the year. A separate question that's sort of related to the last question, which is on the Stablecoin-as-a-Service. You know, really great to see the SoFi news. I would love to hear, you know, just that pipeline, 'cause it feels like stablecoins is an area where it's not as impacted by crypto asset prices volatility. It's not as impacted by the regulatory environment since GENIUS Act is already done, although the interest exemption, that fight might have a little bit of impact. But I would love to see, you know, more and more stablecoins being issued through BitGo. You know, how does that pipeline look as you enter 2026?

Yeah, there's been a number of others. We haven't mentioned them as much because they're not as big of brands, but FYUSD launched on top of BitGo Stablecoin-as-a-Service, as well as a few others. There's a healthy pipeline more. Also the conversion component between all these different stablecoins is an area that we've been growing partnerships with some of the existing players, everywhere from PayPal to Fidelity. Then in terms of how this grows, there's an interesting point that goes with CLARITY. If you're not allowed to get interest on stablecoins, then it kind of encourages everybody to want to be an issuer. Imagine, you know, your role as a bank or a business.

You've got, you know, some distribution channel of parties, and you want to use stablecoins. You've got two choices, either use an existing stablecoin, in which case somebody else gets all the interest, or you build your own. You get to participate and figure out how you're gonna use the interest that you get off of the reserves. A lot of parties that have an existing distribution channel, of course, they want to tap into that. Eventually, I believe, you know, I don't know what arc of time it's gonna take to get there. Eventually, we will have, you know, interest on stablecoins, and when that happens, the calculus changes. Now being an issuer is no longer so much about keeping the interest from your own distribution channel.

Instead, you'll pay somebody, much like an ETF, you'll pay them an administrative fee, probably, you know, 40-80 basis points. And then you'll be able to get the interest from them. Suddenly the need to be an issuer will be less. It's an interesting place where I think, you know, on one hand, we here at BitGo are very much in favor of, yes, you should be able to provide interest on stablecoins, and that should be the way it works. I don't think that that's gonna happen. I think whether CLARITY Act passes or not, it's gonna remain kind of constrained, and that's going to lead to more people wanting to be their own issuers, and that leads to more people wanting BitGo Stablecoin-as-a-Service product.

Yeah, that's what I was thinking as well. Interesting times. Thanks so much, Mike.

Interesting indeed. All right. Thank you so much.

Thank you for your participation. That is all the time we have today for the question and answer session. I will now turn the call back to Mike Belshe, Founder and CEO, for closing remarks.

Thank you, everybody, for joining us today. Appreciate your interest and support of BitGo. Thanks everybody for saying congratulations. I think it's not entirely necessary, but it is appreciated. The entire team here at BitGo works super hard. We've been doing it for 12 years. The people feel we're on a mission to really change the way the financial system works, and we're really proud to be a part of it. Thank you, and look forward to keeping in touch with all of you on this journey.

This concludes today's call. Thank you for attending. You may now disconnect.