Today, digital assets have gone far beyond just Bitcoin and Ethereum. Companies can now, for example, hold USDC for operational payments, own NFTs as marketing assets, or explore tokenized treasury bonds for yield. Each of these digital assets creates unique accounting challenges that traditional crypto guidelines barely address.
Statistically, the global NFT market reached $49 billion in 2025, while the stablecoin market surpassed $300 billion, growing 82.9% year-over-year. Meanwhile, the tokenized real-world asset market hit $24 billion, expanding 380% over three years. Yet most finance teams are still using accounting frameworks designed for volatile cryptocurrencies rather than these diverse digital asset classes.
If you’re a CFO, controller, or finance lead, you need clear guidance on classification, valuation, and reporting. In this guide, we will explain how to account for these assets properly.
What Falls Under ‘Digital Assets’ in Accounting Terms?
As previously mentioned, digital assets go beyond just cryptocurrencies and now include stablecoins, NFTs, tokens, etc.
Cryptocurrencies like Bitcoin and Ethereum are fungible assets that are highly volatile and mostly traded on exchanges. On the other hand, stablecoins like USDC and USDT are pegged to fiat currencies but not considered cash assets. However, NFTs and other digital assets fall into the non-fungible asset category, ranging from art to digital land and gaming assets. Tokenized assets refer to actual assets, such as bonds, stocks, or real estate. Governance tokens and utility tokens are both used to support a decentralized network.
Each type differs in liquidity, legal status, and purpose. Therefore, it is essential to correctly classify, value, and report these diverse classes of digital assets under either IFRS or US GAAP.
How To Account for NFTs Under IFRS and US GAAP
There are challenges in accounting for NFTs due to their unique and diverse nature. For instance, NFTs under IFRS are considered intangible assets under IAS 38. But, under US GAAP, they are either classified as intangible assets or inventory, depending on their model description.
Measurement of such assets can follow a cost model, while acquisition costs, including minting fees and royalties, are recorded. IFRS also allows fair value revaluation when reliable market prices are available. The recognition of these assets as revenue depends on their function. For instance, an NFT creator will record revenue from such sales in accordance with the platform’s and the creator’s revenue recognition agreements.
Concerning impairment and amortization, IFRS involves impairment or amortization based on indicators emerging, while US GAAP involves testing for impairment, usually precluding revaluation but ensuring the amount is recoverable.
Stablecoins and Their Accounting Treatment
Even though stablecoins are pegged to fiat, they should not automatically be treated as cash equivalents in financial reporting.
Despite being tied to fiat currencies, stablecoins cannot, and should not, be considered cash equivalents for financial reporting purposes. Under IFRS rules, stablecoins are considered intangible assets rather than cash because they do not represent a liability of the issuing entity, unlike bank deposits. When reporting in a different fiat currency, foreign exchange differences may arise. Therefore, any changes in value would impact profit and loss, or other comprehensive income, depending on the accounting policy.
Under US GAAP, the approach is similar. Stablecoins are often accounted for at historical cost and are subject to impairment testing. Fair value revaluation is not automatic and occurs only if the company adopts a specific valuation policy or recognizes impairment.
Tokenized Real-World Assets (RWAs) and Security Tokens
Accounting for tokenized RWAs or security tokens is an area of concern for many organizations since most RWAs are categorized as financial instruments. This makes them subject to the IFRS 9 principles, while their fair value is determined with IFRS 13.
To make a fair judgment of an asset’s value, a fair value hierarchy has been established with levels 1, 2, and 3 based on the type of market in which the fair value is or can be established. Level 1 fair value is based on the market price in an active market; Level 2 is based on inputs from markets, often quotes for similar assets; while Level 3 is based on independent inputs, such as models or appraisals.
Illiquid tokens often fall under Level 3, presenting significant valuation challenges. This is because the IFRS guidelines require reporting and disclosure of critical assumptions, methodologies, and inputs whenever measurement is performed at Level 3. However, other regulatory bodies, such as the IFRS 7 guidelines, may require additional disclosure.
Key Accounting Challenges for Non-Crypto Digital Assets
Non-crypto digital assets, such as NFTs and tokenized real-world assets, pose accounting challenges. The absence of standardization means there is no generally accepted treatment for these types of assets, either for measurement or reporting. This means that accounting departments have to interpret these narratives. However, their treatment in accounting could be impractical, especially for illiquid assets such as rare NFTs or tokenized assets.
Doing tax preparation and audits equally poses a significant challenge. In the absence of effective systems, accounting for holdings, calculating cost basis, and tracking transactions would be a manual process with a high potential for error.
Lastly, there are regulatory risks. These are quite numerous because rules may change or evolve, for instance, under MiCA regulations for the EU, or stablecoin regulations, or securities tokens.
How to Measure and Report Fair Value Accurately
Accurately measuring and reporting fair value is critical for Web3 treasurers and accountants.
Start by using reliable price feeds, leveraging oracles such as Chainlink or trusted exchange APIs to track market prices regularly and capture daily or periodic fluctuations. Maintain historical cost records at acquisition, including minting fees, gas, and royalties, and log details such as date, chain, and amount paid to support audit and tax requirements.
For NFTs, conduct impairment tests whenever market indicators, such as trading volume or floor prices, fall below cost. At the same time, tokenized financial instruments should be remeasured using your chosen model, in accordance with IFRS 13’s fair value hierarchy. Treasury-held stablecoins and tokens benefit from a mark-to-market or mark-to-model approach, with holdings adjusted as market prices change and the valuation methodology fully documented.
Finally, disclosures should include both narrative and quantitative details, explaining the techniques, assumptions, and risks, with Level 3 assets broken out to show inputs, sensitivity analyses, and potential valuation ranges.
How KoinX Books Simplifies Accounting for Diverse Digital Assets
One of the biggest operational challenges for Web3 finance teams is reconciling and reporting across diverse digital assets. KoinX Books simplifies this process by integrating directly with wallets, blockchains, and exchanges, automatically pulling in holdings such as cryptocurrencies, NFTs, and tokens. It supports real-time valuation by connecting to market data oracles like Chainlink and major exchange APIs, ensuring accurate, up-to-date pricing.
The platform also automatically generates journal entries for initial cost, fair-value revaluation, impairment, FX translation, and more, all mapped to IFRS or US GAAP. Audit-ready reports, including balance sheet schedules, revaluation tables, and disclosures, are automatically generated. Moreover, multi-asset taxation and transaction histories are tracked in a single system to reduce manual reconciliation risk.
For finance teams managing a mix of NFTs, stablecoins, and tokenized assets, automation with KoinX Books is a game-changer. It reduces the risk of misclassifying assets, missing impairments, or failing disclosure, and simplifies digital asset accounting.
Conclusion
NFTs, stablecoins, and tokenized real-world assets are rapidly moving into mainstream finance. As asset types proliferate, accurate classification, valuation, and reporting become mission-critical.
Organizations that implement structured accounting frameworks and robust automation will stand out with stronger compliance, cleaner audits, and greater financial clarity. With KoinX Books, Web3 finance teams can finally unify their digital asset accounting stack: from NFTs and stablecoins to RWAs and utility tokens.
Frequently Asked Questions
Are Nfts Treated As Crypto Or Separate Assets In Accounting?
Can Stablecoins Be Reported As Cash Equivalents?
Under current standards, stablecoins cannot be reported as cash equivalents. Despite maintaining stable fiat values, stablecoins are typically classified as intangible assets. They’re not legal tender, aren’t issued by central banks, and carry counterparty and technology risks, which are key requirements for cash equivalent treatment.
How Do You Record Tokenized Real Estate Or Bonds On The Balance Sheet?
Classification depends on the asset’s nature and your holding intent. Tokenized securities meeting the definition of financial instruments follow IFRS 9 or ASC 320. Tokenized real estate might be investment property (IAS 40) or intangible assets, depending on the structure. The key is looking through the token to the underlying rights.
What Accounting Standard Applies To NFT Royalties?
Does Koinx Books Support Multi-Asset Reporting Under IFRS And US GAAP?
KoinX Books handles cryptocurrencies, stablecoins, NFTs, and tokenized assets, automating classification and journal entry generation under both IFRS and US GAAP, with audit-ready documentation for all asset categories.