Stablecoins on the balance sheet: cash equivalent, financial asset or intangible
How holders classify stablecoins under US GAAP and IFRS today, and what the FASB's August 2026 cash-equivalents proposal would clarify.
A dollar stablecoin can land in three different places on your balance sheet depending on the rights it gives you and the framework you report under. The FASB is consulting until 19 November 2026 on examples that would say when a stablecoin can sit in cash equivalents; nothing is final yet, so your current policy still governs.
Why stablecoins are not simply crypto assets
ASU 2023-08 brought fair value accounting to crypto assets that meet six scope criteria. One of them is that the asset does not give the holder enforceable rights to, or claims on, underlying goods, services or other assets [2]. A fiat-backed stablecoin that you can redeem with its issuer arguably gives you exactly such a claim. Deloitte notes that a stablecoin collateralised by and redeemable for its backing assets would likely fail that criterion [3].
Once outside ASU 2023-08, the accounting follows the rights and obligations of the specific token. Deloitte says a stablecoin could be accounted for under the guidance for financial assets or financial instruments, while others may be intangible assets that fail the scope test [4][3]. An intangible that is out of scope falls back to the ASC 350-30 cost-less-impairment model [3]. In practice, that means a stablecoin can be a cash equivalent, a financial asset, or an intangible carried at cost less impairment.
What the FASB proposal would clarify
On 18 August 2026 the FASB issued a proposed update to Topic 230 on cash equivalents and certain digital assets, with comments due 19 November 2026 [1]. It does not change the definition of cash equivalents: short-term, highly liquid investments readily convertible to known amounts of cash and so near maturity that interest-rate risk is insignificant [1]. Instead it adds worked examples [1].
| Case | Facts | Outcome |
|---|---|---|
| A | Holder has an account with the issuer and a contractual right to redeem on demand at $1 with no significant fees or restrictions; issuer holds segregated reserves of at least 1:1 in cash and Treasury bills of three months or less | Meets the definition of a cash equivalent |
| B | Same token, but the holder has no account and no direct redemption right; it relies on selling in active secondary markets at about $1 | Not a cash equivalent: not readily convertible to a known amount of cash |
| C | Holder can redeem, but reserves are in-scope crypto assets and gold | Not a cash equivalent: reserve values can move for reasons other than interest rates |
Case B is the one most treasuries should notice. Holding a widely traded token is not enough; the analysis turns on whether your entity itself has a direct, on-demand redemption right [1]. The proposal also says an entity should consider relevant laws and regulations, citing the GENIUS Act, when setting its cash-equivalents policy [1].
Presenting qualifying assets as cash equivalents stays a policy election, and the proposal says it would not require any digital asset to be presented that way [1]. Separately, every entity that presents cash equivalents would have to disclose their significant components, such as Treasury bills, commercial paper, stablecoins and money market funds, with amounts, each year [1]. Transition would be modified prospective, with a reconciliation of opening cash balances in the year of adoption; the effective date will be set after comments [1].
The Board also pointed to a cost of not electing: an entity that uses stablecoins to move value but does not treat them as cash equivalents generally has to track those flows separately for the cash flow statement or noncash disclosures [1].
Under IFRS
IFRS has no crypto-specific standard [8]. The 2019 IFRS Interpretations Committee decision placed cryptocurrencies under IAS 38 or IAS 2, but its scope was limited to tokens that give rise to no contract between holder and another party [5]. A redeemable stablecoin may not fit that description. KPMG's view is that a stablecoin with a substantive, enforceable right to redeem for cash may be a financial asset under IFRS 9, but that restrictions on redemption, or issuer discretion to refuse it, can prevent that, in which case IAS 38 or IAS 2 may apply instead [6].
As for standard-setting, an IASB leadership presentation in September 2026 listed crypto assets among possible future projects, not active ones [7]. As of October 2026, IFRS reporters are applying existing standards and judgement.
What to do
- Inventory every stablecoin you hold and record, per token, whether your entity has a direct redemption account and on what terms.
- Read the issuer's terms and reserve disclosures; note reserve composition, segregation and any fees or redemption limits.
- Write down your classification for each token (cash equivalent, financial asset, or intangible) and the reasoning.
- Check whether your cash flow statement captures stablecoin payments if they are not cash equivalents.
- Consider commenting on the FASB proposal before 19 November 2026, and plan for the new components disclosure.
Sources
- Proposed Accounting Standards Update: Statement of Cash Flows (Topic 230), Cash Equivalents—Disclosure Enhancement and Evaluation of Certain Digital Assets (File Reference No. 2026-ED400) (FASB)
- Accounting Standards Update No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (FASB)
- 2.3 Crypto Assets Within the Scope of ASU 2023-08 (Deloitte (DART Roadmap: Digital Assets))
- Heads Up — Frequently Asked Questions About Implementation of the FASB's New Crypto Assets Standard (Deloitte)
- Holdings of Cryptocurrencies—June 2019 (agenda decision) (IFRS Interpretations Committee)
- Stablecoins (KPMG IFRG)
- IASB update—Q&A with IASB leadership, World Standard-setters Conference 2026 (IFRS Foundation)
- Cryptoassets: Your questions answered (KPMG IFRG)
General information for finance teams, current as of publication. Not legal, tax or accounting advice.