Fair Value of Financial Instruments and Other Assets (Tables)

12 Months Ended

Dec. 31, 2025

The Company’s financial instruments and other assets measured at fair value on the consolidated statements of financial condition as of December 31, 2025 and 2024 have been categorized based upon the fair value hierarchy as follows:


	Quoted Prices in active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total

As of December 31, 2025	(dollars in thousands)
Assets
Cash equivalents – Money market funds and other highly liquid investments	$	1,810,560	$	—	$	—	$	1,810,560
Investment in available for sale debt securities (1)	—		—		24,857		24,857
Digital asset loan receivable (1)	—		24,411		—		24,411
Digital assets – Canton Coins (1)	242,729		—		—		242,729

Total assets measured at fair value	$	2,053,289	$	24,411	$	24,857	$	2,102,557

Liabilities
Payable and due to related parties – Foreign exchange derivative contracts	$	—	$	6,657	$	—	$	6,657
Total liabilities measured at fair value	$	—	$	6,657	$	—	$	6,657

As of December 31, 2024
Assets
Cash equivalents – Money market funds and other highly liquid investments	$	1,117,133	$	—	$	—	$	1,117,133
Investment in available for sale debt securities (1)	—		—		10,354		10,354
Digital Assets – Canton Coins (1)	—		—		852		852
Receivable and due from related parties – Foreign exchange derivative contracts	—		7,844		—		7,844
Total assets measured at fair value	$	1,117,133	$	7,844	$	11,206	$	1,136,183

(1)Included as a component of digital assets and other investments at fair value on the consolidated statements of financial condition.

Schedule of Canton Coin

The following table presents the Company’s Canton Coin holdings as of December 31, 2025 and 2024:


	December 31, 2025					December 31, 2024
	Quantity of Coins	Cost Basis		Fair Value		Quantity of Coins	Cost Basis		Fair Value

	(dollars in thousands)
Canton coins	1.6 billion	$	11,461	$	242,729	1.2 billion	$	666	$	852

Schedule of Changes in Fair Value

The following table presents a summary of the changes in the Company’s Canton Coin holdings during the years ended December 31, 2025 and 2024:


	Year Ended
	December 31,
	2025		2024

	(dollars in thousands)
Beginning balance	$	852	$	—
Additions – Validator Revenue	10,947		666
Dispositions	(15,000)		—
Origination of digital asset loan receivable	(24,999)		—
Total realized and unrealized gains included in other income (loss), net (1)	270,929		186
Ending balance	$	242,729	852

(1)Includes realized gains totaling $39.8 million during the year ended December 31, 2025 and unrealized gains totaling $231.1 million and $0.2 million during the years ended December 31, 2025 and 2024, respectively.

The following table presents a summary of the changes in fair value for Level 3 assets during the years ended December 31, 2025 and 2024:


	Year Ended
	December 31,
	2025		2024

	(dollars in thousands)
Investments in Available for Sale Debt Securities
Beginning balance	$	10,354	$	—
Additions	518		10,354
Dispositions	—		—

Total realized and unrealized gains included in other comprehensive income (loss)	13,985		—
Ending balance	$	24,857	$	10,354

Digital Assets – Canton Coins
Beginning balance	$	852	$	—
Transfer out of Level 3 (1)	(852)		—
Additions	—		666
Dispositions	—		—
Total realized and unrealized gains included in other income (loss), net	—		186
Ending balance	$	—	$	852

(1)Transfers between levels of the fair value hierarchy occur when there are changes in the observability of significant valuation inputs and/or the significance of valuation inputs and are reported at the beginning of the reporting period in which they occur.

Schedule of Derivative Values

The following table summarizes the aggregate U.S. dollar equivalent notional amount of the Company’s foreign exchange derivative contracts not designated as hedges for accounting purposes:


	December 31,
	2025		2024

	(dollars in thousands)
Foreign currency forward contracts – Gross notional amount	$	339,794	$	238,182

The total realized and unrealized gains (losses) on foreign exchange derivative contracts recorded within the consolidated statements of income are as follows:


	Year Ended
	December 31,
	2025		2024		2023

	(dollars in thousands)
Foreign currency forward contracts not designated in accounting hedge relationship – General and administrative (expenses)/income	$	(21,015)	$	14,966	$	792
Foreign currency call option contract not designated in accounting hedge relationship – Other income/(loss) (1)	$	—	$	—	$	(1,289)

(1)On June 1, 2023, the Company entered into a foreign currency call option on Australian dollars, giving the Company an option to buy A$120.7 million, in order to partially mitigate the Company’s U.S. dollar versus Australian dollar foreign exchange exposure on the then-anticipated payment of the Australian dollar denominated purchase price for the Yieldbroker Acquisition. The counterparty on the foreign currency call option contract was an affiliate of LSEG. On August 25, 2023, the Company unwound the out-of-the-money foreign currency call option and received $1.1 million from an affiliate of LSEG.

Schedule of Financial Instruments Not Measured at Fair Value

The Company’s financial instruments not measured at fair value on the consolidated statements of financial condition as of December 31, 2025 and 2024 have been categorized based upon the fair value hierarchy as follows:


	Carrying Value		Quoted Prices in active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value

As of December 31, 2025	(dollars in thousands)
Assets
Cash and restricted cash	$	275,179	$	275,179	$	—	$	—	$	275,179
Receivable from brokers and dealers and clearing organizations	8,630		—		8,630		—		8,630
Deposits with clearing organizations	58,282		58,282		—		—		58,282
Accounts receivable	257,845		—		257,845		—		257,845
Other assets – Memberships in clearing organizations	3,127		—		—		3,127		3,127
Total	$	603,063	$	333,461	$	266,475	$	3,127	$	603,063

Liabilities

Payable to brokers and dealers and clearing organizations	$	3,363	$	—	$	3,363	$	—	$	3,363
Total	$	3,363	$	—	$	3,363	$	—	$	3,363

As of December 31, 2024
Assets
Cash and restricted cash	$	224,169	$	224,169	$	—	$	—	$	224,169
Receivable from brokers and dealers and clearing organizations	67,805		—		67,805		—		67,805
Deposits with clearing organizations	54,702		54,702		—		—		54,702
Accounts receivable	222,268		—		222,268		—		222,268
Other assets – Memberships in clearing organizations	2,918		—		—		2,918		2,918
Total	$	571,862	$	278,871	$	290,073	$	2,918	$	571,862

Liabilities

Payable to brokers and dealers and clearing organizations	$	67,816	$	—	$	67,816	$	—	$	67,816
Total	$	67,816	$	—	$	67,816	$	—	$	67,816

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

Tradeweb Markets Inc. 10-K