Corporate finance teams are increasingly exploring stablecoins like USDC, USDT, DAI, and Frax USD as practical tools for liquidity, cross-border payments, and treasury management. Unlike highly volatile cryptocurrencies, stablecoins are designed to maintain a peg to a fiat currency or basket of assets. This makes them attractive for operational cash management across both Web3-native and conventional businesses.
The relevance of stablecoins is evident in the market scale: as of January 2026, USDC alone accounts for over $75.8 billion in circulation, while total fiat-backed stablecoins reach $317.94 billion globally. The advantages of stablecoins are also clear, including instant settlement, global accessibility, reduced reliance on traditional banking, and programmable payments.
However, these benefits also introduce accounting, taxation, and compliance challenges as regulations differ across jurisdictions, and mistakes can lead to audit issues or fines. In this guide, we address the key aspects of stablecoins in corporate finance, including accounting, treasury management, and compliance.
What Are Stablecoins and How Do Corporations Use Them?
Stablecoins are digital tokens pegged to fiat currencies, such as the USD, or other assets. They can be:
- Fiat-backed; fully collateralized by traditional currency like USDC or USDT;
- Crypto-backed; secured by other cryptocurrencies like DAI;
- Algorithmic; which maintain their peg through smart contract protocols, such as Frax USD, without direct collateral.
Corporations leverage stablecoins for several purposes. They serve as treasury reserves, providing liquidity without exposure to the volatility of other cryptocurrencies. Stablecoins are also used for payroll and vendor payments, particularly in remote and cross-border contexts, enabling instant settlement. They can generate yield when deposited into compliant DeFi protocols or lending platforms.
Additionally, companies may use stablecoins for internal transfers and incentive programs to enable faster, more efficient distribution of digital rewards. Unlike fiat held in banks, stablecoins operate 24/7, making them ideal for global treasury operations where speed and accessibility are critical.
Accounting Treatment of Stablecoins Under IFRS and US GAAP
Although stablecoins are pegged to fiat, they do not automatically qualify as “cash” for accounting purposes. Their treatment depends on whether they are fiat-backed, crypto-backed, or algorithmic, as well as the applicable accounting framework.
Under IFRS, stablecoins are typically classified as intangible assets under IAS 38, unless they represent a direct liability of a regulated financial institution. They are generally recorded at cost, with revaluation required only if there are impairment indicators. Foreign exchange gains or losses arise when the reporting currency differs from the stablecoin peg.
US GAAP takes a similar approach. Stablecoins are considered intangible assets and recorded using the cost model. Unlike IFRS, they are not revalued upward; impairment is recognized only when the carrying value exceeds the recoverable amount. Foreign currency considerations apply similarly if the reporting currency differs from the token peg.
Fiat-backed stablecoins are more straightforward. They are recorded at cost and revalued for FX if necessary. Crypto-backed stablecoins may require fair value monitoring due to price volatility, and impairments may arise if the collateral’s value declines. Algorithmic stablecoins, given their volatility, require closer attention for potential devaluation.
Treasury Management with Stablecoins
Integrating stablecoins into treasury operations requires careful planning. Corporations must maintain visibility across multiple wallets and platforms to ensure accurate accounting and risk management. Liquidity should be segregated between operational reserves and funds deployed for yield generation or investment. Teams must monitor stablecoin types, peg stability, and counterparty risk, while optimizing yield through compliant DeFi or lending protocols.
For instance, a global startup might maintain $2 million in USDC as treasury for day-to-day expenses. Of that, $500,000 could be deposited into a DeFi lending pool on Ethereum for approximately 6% annual yield. Automated tools like KoinX Books can track wallet balances, log fair-value changes, and generate audit-ready reports, thereby streamlining treasury management and reducing operational risk.
Compliance and Regulatory Considerations for Stablecoins
Regulators globally are increasingly focused on stablecoin usage. In the United States, the SEC and FinCEN regulate stablecoins under securities and money transmission rules. The European Union’s MiCA framework addresses issuance, reserve audits, and corporate usage. In Asia and the UAE, local authorities impose AML/KYC requirements and licensing for digital asset activities.
Corporations must implement internal policies governing the issuance, holding, and spending of stablecoins. KYC and AML checks are essential when interacting with exchanges or counterparties. Proper documentation for audit, tax, and compliance purposes is critical to mitigate risks such as fines, legal action, or operational restrictions.
Taxation Implications of Holding and Using Stablecoins
Even with stablecoins pegged to fiat, tax implications manifest themselves in several ways. Gains on nonpegged or algorithmic stablecoins are taxable, and even converting stablecoins to fiat may trigger a taxable event. Cross-border transfers are another potential source of withholding or reporting duties.
For example, a US corporation paying an employee 1,000 USDC would calculate income tax based on the fair market value of $1,000. Employer withholding obligations apply accordingly. If the USDC is later converted to EUR at a different rate, the company may need to recognize foreign exchange gains or losses in the financial statements.
How To Account for Stablecoin Payments (Payroll, Vendor, and Incentives)
When corporates pay salaries to contractors or vendors using stablecoins, the transaction must be recorded at fair market value at the payment date. Any foreign exchange differences must be adjusted for reporting if the ledger currency differs from the stablecoin peg. For token-based incentive programs with vesting schedules, IFRS 2 or ASC 718 applies, and separate accounting is required to recognize the expense over the vesting period.
For instance, if a certain Web3 company pays a contractor in India 500 USDT. At the time of payment, a payroll expense should be valued at the current fair market value, say ₹42,500. The accounting entries should capture the expense, the corresponding dip in stablecoin assets, and any foreign exchange adjustments if the INR shifts before reporting.
How to Account for LP Tokens and Liquidity Pool Positions
LP tokens may be the most misunderstood assets in crypto accounting because they aren’t normal crypto tokens. They represent claims on underlying assets inside a liquidity pool.
For example, a Uniswap V3 LP token may represent: 1.4 ETH, 2,500 USDC, and accrued trading fees. All of these must be measured separately.
Here are three things that you must note when accounting for LP tokens:
Best Practices for Recording and Reconciling Stablecoin Transactions
Stablecoin accounting requires meticulous record-keeping. Corporations should automate transaction capture through wallet, exchange, and DeFi integrations to avoid manual errors. The fair market value of stablecoins should be recorded at the timestamp of each transaction.
Operational funds should not be mingled with treasury reserves for better clarity and ease of audits. Every ledger entry, whether it is gas fees or transaction proofs, along with all supporting information, must be recorded. This helps maintain a transparent chain of custody and ensure compliance with IFRS and GAAP.
Ignoring these practices can lead to misclassification, foreign exchange errors, and compliance violations, potentially undermining audit readiness and financial accuracy.
How KoinX Books Simplifies Stablecoin Accounting and Treasury Operations
KoinX Books automates stablecoin accounting and treasury management workflows. The platform integrates with wallets and exchanges in real time, fetching accurate market or oracle prices for IFRS and GAAP valuations. Multi-currency reporting is handled automatically, capturing FX conversion impacts and posting accurate journal entries.
Therefore, the accounting for payroll and payments to vendors for stablecoins is accurate, and reports such as revaluation statements and balance sheets can be generated with a single click. Using KoinX Books, corporations can manage complex treasury positions across multiple wallets and chains without manual processing.
Conclusion
Stablecoins are no longer considered niche digital assets; they are increasingly viewed as an essential part of corporate treasuries, payroll systems, and cross-border payment systems. Accounting, regulatory, and risk management best practices are necessary for stablecoin usage to be secure. Tools such as KoinX Books can automate stablecoin management for a corporation.
By implementing sound treasury practices and accounting standards aligned with IFRS/GAAP, companies can fully leverage the operational benefits of stablecoins. In the new Web3 world, only companies with precise accounting practices and automated treasury management processes for stablecoins can be seen as credible.
Frequently Asked Questions
Are Stablecoins Considered Cash Or Intangible Assets In Accounting?
Stablecoins can generally be considered intangible assets. This is based on the IFRS or GAAP standards and the extent to which the stablecoin is fully redeemable in fiat currency, such as in the case of redeemable tokens that could qualify as cash equivalents in certain situations.
How Do Corporations Record Fx Changes When Using Stablecoins?
Companies translate stablecoin holdings to the reporting currency at each reporting date. Any differences between the stablecoin’s pegged value and the reporting currency are recorded as foreign exchange gains or losses.
Can Stablecoins Be Used For Payroll Or Vendor Payments?
Payments in stablecoins are permissible if the fair market value (FMV) is recorded at the time of payment and all relevant tax, payroll, and ledger compliance requirements are followed.
Do All Stablecoins Have The Same Regulatory Treatment?
Stablecoins are treated differently by law depending on the country, the type of stablecoin, and the collateral supporting it. Companies must make their own assessment for each stablecoin.
How Does Koinx Books Help Automate Stablecoin Accounting?
KoinX Books automates stablecoin accounting by integrating wallets and exchanges, calculating FMV, handling FX adjustments, preparing journal entries, and producing reports compliant with IFRS and GAAP.