US accounting shift aids corporate stablecoin use

TLDR

US standard setters are considering treating some stablecoins as cash equivalents for companies, which could remove a major accounting barrier to corporate stablecoin use.

1. A proposed Financial Accounting Standards Board (FASB) update would let qualifying stablecoins be booked as cash equivalents on balance sheets, according to a Tempo report.
2. To qualify, companies would need direct redemption rights with the issuer, so not every USDC or similar holding would count as cash by default.
3. The proposal is still in the comment phase and interacts with new US stablecoin laws, so the real impact will depend on the final rules and which tokens meet the criteria.

Deep Dive

1. Proposed Accounting Change

Stripe backed blockchain firm Tempo argues that a proposed FASB Accounting Standards Update could allow certain stablecoins to be classified as cash equivalents on corporate balance sheets, removing a key deterrent to adoption for treasurers. The proposal, filed in August, targets the issue that even fully dollar backed stablecoins often do not count as cash in reported figures today, which can distort liquidity ratios and loan covenant metrics for companies that hold them.

Under the draft, stablecoins that meet strict conditions could be treated like other short term, highly liquid instruments that qualify as cash equivalents, according to the Tempo report. Public comment is open until mid November, after which FASB will decide whether and how to finalize the change.

2. How It Helps Corporate Stablecoin Use

Tempo highlights that the main benefit is operational, not speculative. If a company can hold a qualifying stablecoin and still report that balance inside its cash and cash equivalents line, it can use stablecoins for payments, settlements and on chain workflows without worsening headline liquidity metrics.

A key example is Coinbase, which already classified USDC and other payment stablecoins as cash equivalents in its 2025 annual report based on a contractual redemption arrangement with Circle. The proposal essentially codifies this type of treatment when a firm has robust, direct redemption rights, making it easier for corporates to justify on chain cash management without upsetting auditors or lenders.

3. Limits, Eligibility And What To Watch

The proposal is narrow. Tempo stresses that your contract with the issuer is what qualifies, and the token alone does not get you there, meaning that simply buying USDC on an exchange may not make it a cash equivalent automatically. Companies would likely need documented, enforceable redemption rights and clear evidence of dollar reserves at the issuer. Algorithmic or loosely backed stablecoins are very unlikely to qualify.

The accounting move sits alongside the GENIUS Act, passed in 2025, which sets federal rules for US payment stablecoin issuers, including reserve and redemption requirements. Accounting standards govern how corporates report their holdings, while the law governs how issuers operate. Together they point toward a more formal, regulated role for dollar stablecoins in corporate finance.

Confidence: high, because multiple independent reports describe the same FASB proposal and its conditions.

Conclusion

If adopted as proposed, the US accounting shift would make it easier for companies to treat some stablecoins as true cash equivalents, aligning reporting with economic reality for fully backed, redeemable tokens. The real test will be how many issuers and corporates can meet the direct redemption and compliance requirements, and whether that is enough to push stablecoins from experimental treasury tool into mainstream corporate cash infrastructure.