ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE

6 Months Ended

Jun. 30, 2023

ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE

Accounts and loans receivable, net of allowance consisted of the following (in thousands):


	June 30,		December 31,
	2023		2022
Interest receivable	$	216,035	$	181,647

Custodial fee revenue receivable	15,014		8,434
Loans receivable(1)	132,856		98,203
Crypto asset loans receivable	37,694		85,826
Other receivables(2)	38,920		41,766

Allowance for doubtful accounts(3)	(13,309)		(11,500)
Total accounts and loans receivable, net of allowance	$	427,210	$	404,376

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(1)Loans receivable does not include $40.6 million and $2.8 million of receivables denominated in USDC as of June 30, 2023 and December 31, 2022, respectively, as these financial assets did not meet the criteria for derecognition. These amounts are included in USDC in the condensed consolidated balance sheets.

(2)Includes accounts receivables denominated in crypto assets of $5.4 million and $6.9 million as of June 30, 2023 and December 31, 2022, respectively. See Note 13. Derivatives for additional details.

(3)Includes provision for transaction losses of $2.9 million and $3.2 million as of June 30, 2023 and December 31, 2022, respectively.

Loans receivable

The Company issues fiat loans to consumers and institutions. As of May 10, 2023, the Company stopped issuing new loans to consumers and existing consumer borrowers will have until November 20, 2023 to pay back their loans. As of June 30, 2023 and December 31, 2022, the Company had issued loans with an outstanding balance of $132.9 million and $98.2 million, respectively. The related interest receivable on the loans as of June 30, 2023 and December 31, 2022, was $0.9 million and $0.7 million, respectively.

The amounts loaned are collateralized with crypto assets which are either held by the borrower in their crypto asset wallet on the Company’s platform or held directly by the Company. The Company generally does not have the right to use such collateral unless the borrower defaults on the loans. Due to the collateral requirements the Company applies to such loans, the Company's process for collateral maintenance, and collateral held on platform, the Company’s credit exposure is significantly limited and no allowance, write-offs or recoveries were recorded against these loans receivable. The loans are measured at amortized cost. The carrying value of the loans approximates their fair value due to their short-term duration of less than 12 months. As of June 30, 2023 and December 31, 2022, there were no loans receivable past due. See Note 11. Collateral, for additional details regarding the Company’s obligation to return collateral.

Crypto asset loans receivable

The Company enters into transactions where it lends crypto assets to institutional customers. The Company evaluates the crypto asset loans receivable for credit loss. Due to the collateral requirements the Company applies to such loans, the Company's process for collateral maintenance, and collateral held on platform, the Company’s credit exposure is significantly limited and no allowance, write-offs or recoveries were recorded against these crypto asset loans receivable. As of June 30, 2023 and December 31, 2022, there were no crypto asset loans receivable past due.

The Company requires that borrowers pledge assets as collateral for these loans. See Note 11. Collateral, for additional details regarding the Company’s obligation to return collateral.