Stablecoins have grown significantly beyond an ordinary crypto trader’s tool. Now, they play an essential part in treasury operations, facilitating faster settlement, global liquidity, and programmable cash management. From Fortune 500 companies looking to use blockchain for payments to web3 companies that natively use stablecoins in their treasuries, it’s clear that crypto use cases have expanded beyond the early days.
With this growth in adoption, stablecoins introduce additional layers of complexity for CFOs and controllers. While the treasury team seeks operational advantages from these investments, they need clarity on how to account for them responsibly. Therefore, several factors, such as valuation, FX conversion, custody risk, disclosures, counterparty risk, and IFRS and GAAP classification, must be considered for accounting purposes.
This guide explains how stablecoins are used in modern treasury operations and how to account for them accurately.
Why Are Stablecoins Essential in Corporate Treasury?
Stablecoins such as USDC, USDT, PYUSD, and EURC provide a middle ground between traditional banking and digital asset rails. They support instant cross-border settlement, clock-to-clock liquidity, lower transaction costs, programmable payments, better management of multiple currencies, and seamless integration with liquidity tools for web3 businesses.
As reported by Bloomberg, USDC trading volumes have exceeded $18.3 trillion, with a significant share coming from enterprises. Today, a significant share of trading volume is accounted for by stablecoins, up to 60% at times. However, there is no clarity about their reporting.
How Are Stablecoins Used In Treasury Operations?
Stablecoin-enabled treasury operations typically fall into these five categories:
1. Cross-Border Payments and Vendor Settlements
The friction of wire transfer systems such as SWIFT is reduced by using stablecoins to facilitate near-instant settlement and minimize FX spread costs. Vendor payments can be made globally without the complexity of correspondent banking relationships. For example, a European-based company specializing in Web3 technology can make on-chain USDC payments to LATAM-based contractors. Payments can be easily settled instantly, and contractors can convert locally to eliminate friction from SWIFT-based wire transfers:
2. Liquidity Management and On-Chain Cash Positioning
Stablecoins also act as a digital cash layer for liquidity management and on-chain cash positioning. Treasuries use them for intercompany transfers, centralizing treasury balances, maintaining liquidity buffers, and automating cash sweeps across multiple wallets. This is particularly beneficial for Web3 organizations managing operational wallets across chains.
3. Treasury Yield and On-Chain Money Market Products
Corporate treasuries can also earn yield by investing in tokenized T-bills, on-chain money market funds, and short-term lending protocols. However, participation in DeFi money markets may trigger financial instrument classification or fair value remeasurement requirements under IFRS 9.
4. Stablecoin-Based AP/AR Workflows
Some companies implement stablecoin-based AP/AR workflows, where clients pay in USDC, treasury records FX exposure, and AP teams settle suppliers or convert to fiat. This approach is gaining popularity among SaaS firms serving global buyers.
5. Payroll and Compensation
Stablecoins are increasingly used for payroll and compensation, covering contractor payments, partial salaries, and performance bonuses for global teams. These payments introduce FMV-based payroll accounting obligations that must align with tax rules.
Accounting Treatment of Stablecoins Under IFRS and GAAP
Stablecoins are similar to cash, yet IFRS and GAAP standards do not include them as cash or cash equivalents. Stablecoins are considered intangible assets, but only under certain conditions.
Under IFRS, stablecoins are classified as intangible assets, recognized at cost, measured at fair value through profit or loss, and revalued for FX differences under IAS 21. Stablecoins are not recognized under the cash-equivalent standard because banks do not issue them, and they are not redeemable at par on demand.
Under US GAAP, stablecoins are classified as intangibles, have indefinite useful lives, and are reported at historic cost. Under FASB ASU 2023-08, entities must measure in-scope crypto assets at fair value at the end of each reporting period, with gains and losses recognized in net income.
Therefore, stablecoins qualify as cash equivalents only if they meet specific criteria. They must be backed by short-term money instruments and offered the right to be redeemed upon demand. They must also be regulated under e-money or payment token regulations and widely accepted as a medium of exchange. However, stablecoins issued by licensed PPSIs under the GENIUS Act now frequently qualify as Cash Equivalents.
How Treasurers Measure and Value Stablecoin Holdings
Valuation of stablecoins depends on the reporting currency and the nature of transactions. Treasurers measure and value stablecoins at these three levels:
1. Initial Recognition
For initial recognition, stablecoins are recorded at fair market value as of the transaction date and converted into the base reporting currency. Price sources include CEX rates like Coinbase or Kraken, aggregated price indexes, and oracle data such as Chainlink. Consistency in pricing methodology is crucial for audit readiness.
2. Subsequent Measurement
For subsequent measurement, IFRS requires translation at each reporting date, with FX gains or losses recognized in the P&L. US GAAP (ASC 350-60) requires a fair value model and recognizes upward and downward revaluations in net income in each reporting period.
3. Disposal or Conversion
When converting stablecoins to fiat or other tokens, the carrying amount is derecognized, realized gains or losses are recognized, and chain fees are expensed.
Also Read: Coin vs Token: What’s the Difference?
Risk Management Framework for Use of Treasury Stablecoin
Stablecoin operations introduce a new set of risks that traditional cash holdings typically don’t face. Counterparty risk is a major concern, encompassing the risk of issuer failure, mismanagement of reserves, or regulatory shutdowns that could affect treasury liquidity. Additionally, smart contract and chain risks, such as bridge failures, network outages, or compromised wallet keys, can lead to unexpected losses.
Another key consideration is de-pegging risk. Although rare, a stablecoin losing its peg to fiat can result in significant treasury losses if exposure is high. Custody and access risk also matters because weak wallet controls or improper permissions can put corporate funds at serious risk.
To manage these challenges, treasury teams are increasingly building governance layers into their operations. This includes multi-signature approvals, role-based access controls, automated reconciliation processes, and detailed audit trails. Together, these measures help ensure that stablecoin holdings remain secure, auditable, and under proper oversight.
Best Practices for Corporations Using Stablecoins in Treasury
The first step every serious corporation should take is to develop an accounting policy that outlines how stablecoins and other digital assets are recorded, measured, and presented. Additionally, it should outline how to select price sources, convert currencies, and test impairment. Having this in place makes it so much easier to be consistent and audit-ready.
Similarly, the level of detail in monitoring wallet activity is equally relevant. For this purpose, the sub-ledgers should track every incoming and outgoing transaction. They should specify the reason for the transaction, track the chain fees incurred, and identify the counterparty for each transaction. This ensures a clear audit trail and prevents data loss between wallets and chains.
Operation-level wallets should also be grouped by function. For instance, vendor invoices should be paid separately from payroll or reserves. Investment or staking should also have its own wallet. In addition, treasury teams should enable the automatic generation of revaluation reports daily rather than quarterly.
How KoinX Books Simplifies Stablecoin Treasury Operations
Managing stablecoins manually across multiple wallets is error-prone. KoinX Books automates the entire workflow, integrating wallets and exchanges across major chains while automatically pulling FMV data from market indexes and oracle feeds.
It intelligently converts FX based on IAS 21 or ASC 830, schedules impairments and revaluations, generates journal entries for acquisitions, disposals, and transfers, and supports stablecoin-specific AP/AR workflows. Audit-ready treasury reports provide finance teams with real-time visibility and reduce operational risk.
For CFOs and global treasury managers, automation reduces risk while enabling real-time visibility into digital cash positions.
Conclusion
Stablecoins are useful for treasuries because they offer instant settlement, programmable finance, and global liquidity. But with these benefits come new accounting, tax, valuation, and risk-management responsibilities.
Businesses that adopt stablecoins without a structured policy risk misstatements, losses, and compliance gaps. Those who implement disciplined accounting frameworks and leverage automation tools like KoinX Books will have a true competitive advantage.
Frequently Asked Questions
Can Stablecoins Be Treated As Cash Equivalents?
Stablecoins must be issued by a regulated body and be redeemable on demand. Stablecoins that fail these two conditions fall into the intangible asset class, regardless of their stable relationship with fiat currencies.
How Should Businesses Account For FX Changes In Stablecoin Holdings?
Under IFRS and US GAAP, stablecoin balances must be converted into the functional currency at the reporting dates. Any gain or loss realized on the balance will be reported as such in the income statement, as determined by the company’s accounting policy.
Are Stablecoin Transactions Audit-Ready?
Stablecoin transactions are audit-ready, provided proper reconciliation between the blockchain ledger and the financial ledger exists. Proper tagging and documentation will enable a complete audit trail for compliance.
What Risks Should Treasury Teams Consider?
Treasury teams must manage operational, counterparty, regulatory, and technical risks. Some of the best practices to manage these risks include multi-signature wallet controls, governance protocols, and robust internal policies.