How are stablecoins accounted for if they aren't cash equivalents?

Under US GAAP, the FASB's crypto asset rules in ASC 350-60, which require fair value, exclude tokens that give the holder enforceable rights to underlying assets, so fiat-backed stablecoins often fall outside them. Depending on the facts, they may be accounted for under other guidance, for example as a receivable. Under IFRS, KPMG notes a stablecoin may be a financial asset under IFRS 9, or otherwise fall under IAS 38 or IAS 2.

From Can stablecoins count as cash? FASB's 2026 proposal and how to account for USDC, by . Updated .

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

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.

Related guides

Get started

Open a business account built on stablecoins.

Named USD, EUR, GBP and AED accounts in your company's name, with USDC and USDT in and out. Apply online; our compliance team reviews applications in 1 to 5 business days.

Open an accountTalk to sales