How to Account for Stablecoins in Practice: A Modern Guide for Finance Teams

Act I: The Accounting Playbook Just Got Rewritten

For decades, accounting was built around assets that sat still: cash in banks, contracts in drawers, invoices in filing cabinets.

Then came stablecoins — digital assets pegged 1:1 to fiat currencies, capable of moving across blockchains in seconds, 24/7, without needing a bank to push the button.

Today, businesses are using them to pay vendors, hold treasury, and automate workflows. And with the GENIUS Act now in force, stablecoins are no longer fringe. They're regulated.

But here's the problem: the accounting standards weren’t built for this. Not for money that lives on-chain. Not for wallets without banks. Not for programmable payments that trigger instantly and globally.

So the question isn't just what are stablecoins?
It's: how do we account for them, control them, and report them — with confidence?

Act II: Key Decisions Every Accountant Must Make

1. Is This Stablecoin Actually “Cash”?

It looks like cash. It acts like cash. But under GAAP or IFRS, not every $1 stablecoin qualifies.

Here’s the core decision:

If all boxes ticked? Treat as cash equivalent.
If any are unclear? Consider digital asset, intangible, or financial instrument treatment.

US GAAP: No formal category for “digital cash,” but cash equivalent treatment is emerging for GENIUS-compliant assets.
IFRS: More conservative. Likely classified as “financial asset” or “other current asset,” unless extremely low-risk and redeemable.

 2. How Do You Measure It?

Stablecoins are pegged to fiat — but they still fluctuate microscopically.

Under US GAAP (ASU 2023-08):

• Crypto is now measured at fair value with changes in P&L.

• But most stablecoins don’t qualify as crypto for this rule if they’re treated as cash equivalents.

Under IFRS:

• Most stablecoins fall under IAS 38 (intangible assets).

• But if used as cash, expect IAS 32/IFRS 9 to apply as financial instruments measured at amortized cost or fair value.

Best Practice:

• If held operationally (e.g. treasury, payments), treat as cash equivalent or financial instrument at FV.

If held speculatively (e.g. yield farming, arbitrage), classify as investment asset and fair value accordingly.

3. When and How Do You Recognize Revenue or Expenses?

If you’re receiving or paying stablecoins:

• Revenue: Recognize the USD fair value at time of receipt.
  (Use reliable exchange pricing or issuer redemption price.)

• Expense: Record at USD equivalent at time of disbursement.

But remember: under current IRS rules, every stablecoin transaction is also a potential taxable event — if your acquisition and use values differ, even slightly.

⚠️ There is no de minimis exemption (yet). So yes, paying a freelancer 1 USDC could technically trigger a capital gain if you acquired it at 0.999.

4. How Do You Control It?

Stablecoins live in wallets, not banks. That breaks legacy finance control models.

Modern wallet controls must include:

• Key management & access control: Who can move funds? Is it multi-sig or MPC-based?

• Approval workflows: Who authorizes payments? Can wallets integrate with ERP or treasury systems?

• Audit trails: Are transactions traceable, timestamped, and reconciled?

• Reconciliation: Do on-chain wallet balances match GL entries — daily, weekly, monthly?

GENIUS-compliant issuers often provide attestation APIs — use them to verify backing and circulation.

5. What Needs to Be Disclosed?

If stablecoins are material to operations or balance sheet:

• Disclose classification, measurement basis, and valuation method.

• Outline risk exposures: redemption risk, custody risk, counterparty risk (issuer failure).

• Under GAAP, this goes into ASC 820 fair value hierarchy. Under IFRS, into IFRS 7 risk disclosures.

Pro tip: Include a stablecoin policy note if used actively — especially if held in treasury or across jurisdictions.

6. What If It’s Not GENIUS-Compliant?

The rules get tougher — and murkier.

For unregulated or offshore stablecoins (e.g. crypto-backed, algorithmic, non-transparent):

• Default to digital asset or intangible classification.

• Apply fair value accounting (if actively traded) or cost less impairment.

• Increase disclosure: note lack of legal redemption, auditability, or reserve visibility.

• Tax and audit scrutiny will be higher.

These assets are not cash equivalents — and shouldn’t be treated as such.

Act III: The Modern Accounting Stack for Stablecoins

Final Word

Stablecoins aren’t a crypto curiosity anymore. They’re the first step toward programmable, real-time finance — and the accounting world needs to treat them as such.

If you're a CFO, controller, or external accountant, this isn’t a theoretical risk. It’s a practical reality already hitting your ledgers.

The smartest teams aren’t waiting for perfect standards.
They’re building clear policies, tight controls, and future-ready workflows — now.