Can my company show USDC as cash on its balance sheet?

The wider picture

The key points from the guide this answer comes from:

1. On 18 August 2026, the FASB proposed examples showing when a stablecoin can meet the existing US GAAP definition of a cash equivalent. Comments are due by 19 November 2026, and no effective date has been set.
2. The examples point to three attributes: an on-demand contractual right to redeem for cash, a direct redemption right with the issuer for known amounts, and segregated reserves of at least one to one in short-term, highly liquid assets.
3. Most businesses hold USDC or USDT through a provider rather than redeeming with the issuer directly, so whether their holdings qualify depends on their own facts. Being able to sell on an exchange isn't the same as a redemption right.
4. Under IFRS there's no stablecoin standard: a holding may be a financial asset if it carries an enforceable right to cash, and otherwise falls under IAS 38 or IAS 2. Ask your auditor before year-end.

More questions on this

• Does the FASB proposal change the definition of a cash equivalent?
• What new disclosures would the proposal require?
• Is USDT treated the same as USDC?
• How are stablecoins accounted for if they aren't cash equivalents?

The full guide

The FASB proposed examples of when a stablecoin meets the existing cash equivalent definition, pointing to a direct, on-demand redemption right and full reserves. It isn't final, and a company holding stablecoins through a provider should agree the treatment with its auditor.

Read Can stablecoins count as cash? FASB's 2026 proposal and how to account for USDC, with its sources.

General information, not legal, tax or financial advice. Rules and providers' terms change; check the sources in the guide and take advice on your own situation.