FASB Proposal Could Let Some Stablecoins Count as Corporate Cash

A proposed accounting change could make stablecoins more practical for corporate treasury operations by allowing some holdings to qualify as cash equivalents on company balance sheets. The Financial Accounting Standards Board issued the proposal in August. If adopted, the change would allow qualifying stablecoin holdings to be treated similarly to cash equivalents, potentially avoiding some accounting complications for companies using the tokens for payments and settlements. Eligibility would depend on the holder’s contractual relationship with the issuer. Companies would need direct redemption rights, meaning they could redeem the tokens with the issuer under an established agreement.

Source: TokenPost