Understanding Stablecoin Accounting: A Treasury Perspective under MiCAR, IFRS, and US GAAP
This article was first published in https://treasury-management.com/ on 26th August. Link to the original article https://treasury-management.com/blog/understanding-stablecoin-accounting
Some fiat-backed stablecoins can now be treated as cash equivalents under IFRS (and possibly US GAAP). Henri de Jong, Co-Founder of regulated stablecoin issuer Quantoz, believes this could help streamline treasury operations and remove valuation headaches.
As digital assets become increasingly relevant in the financial world, treasurers are now facing a new concept: stablecoins. While the term may sound unfamiliar to some, stablecoins are beginning to intersect with core treasury operations, especially payments and liquidity management.
Indeed, stablecoins could fundamentally reshape how corporate treasuries manage liquidity, execute payments, and navigate global financial flows, moving beyond the limitations of traditional systems.
The accounting treatment of stablecoins under the new European Markets in Crypto-Assets Regulation (MiCAR) regulation delivers alignment with accounting practices under IFRS and US Generally Accepted Accounting Principles (GAAP). With this in mind, it is worth exploring what stablecoins could mean for accounting, treasury workflows, and compliance.
A treasury perspective
Stablecoins are digital representations of money, recorded on a distributed ledger and designed to maintain a stable value. For treasurers, the most relevant are so-called ‘payment stablecoins’, which are backed by fiat currency, such as the euro or US dollar, and are redeemable at par value. Think of them as a form of programmable digital cash, potentially offering near-instant settlement, 24/7 availability, and often lower transaction costs.
From a functional standpoint, stablecoins are intended to behave like fiat money. However, there are key operational differences that give stablecoins a distinctive edge in treasury applications.
Traditional fiat payments such as bank transfers or Single Euro Payments Area (SEPA) transactions rely on outdated, cumbersome systems that are limited to business hours, resulting in slow settlement times (T+2), high costs, and a lack of transparency.
In contrast, regulated stablecoins offer the benefits of being programmable, transparent, instantly transferable, and 24/7 available. This enables treasurers to execute payments, sweep liquidity, or respond to cash flow needs in real-time without being limited by bank operating hours.
For multinational groups or real-time settlement needs, this level of availability can be transformative. For example, a multinational corporation with subsidiaries in different time zones could use stablecoins to make instant payments to suppliers outside traditional banking hours, ensuring timely settlements and potentially reducing transaction costs compared with traditional cross-border transfers.
Properly constructed, stablecoins avoid currency fluctuation risks. When denominated in fiat currencies and fully backed with liquid reserves, their accounting and financial treatment can closely resemble that of holding the underlying fiat itself, without the inefficiencies of the traditional banking rails.
MiCAR: bringing clarity to stablecoin use in payments
MiCAR was introduced by the EU to establish rules for crypto-assets, including stablecoins. For treasurers, the most relevant category under MiCAR is e-money tokens (EMTs), which are designed to maintain a stable value by referencing a single fiat currency and are meant for payment purposes.
MiCAR requires that these tokens are fully backed by reserves and redeemable at par value. This means that for every euro-denominated stablecoin in circulation, there must be one euro in reserve. From a treasury perspective, this structure mirrors the logic of traditional e-money and significantly reduces complexity. As a result, these tokens can be viewed as digital substitutes for actual fiat, providing the same confidence in value retention.
Accounting treatment under IFRS
IFRS are a globally recognised and widely adopted set of accounting rules. Within IFRS, IAS 7 governs how cash and cash equivalents are presented in financial reporting. It defines cash equivalents as short-term, highly liquid investments that are readily convertible to known amounts of cash, and subject to an insignificant risk of changes in value. This classification is critical for corporate treasury operations, as it determines which assets are suitable for liquidity management and funding short-term obligations.
EMTs are strong candidates for cash equivalent classification under IAS 7. Their design typically includes full fiat backing, par-value redeemability, and high liquidity, which align closely with the requirements set out in the standard. Although IFRS provides limited specific guidance on digital assets, the clear regulatory structure of MiCAR strengthens the argument that EMTs can qualify as cash equivalents.
Importantly, accounting bodies do not rely on regulatory classification alone. When assessing whether an asset meets IAS 7 criteria, they may also examine real-world redemption behaviour, liquidity patterns, and settlement arrangements. Having standard processes, including pre-funded accounts and a uniform way to redeem stablecoins, provides evidence that they work like cash in practice and can support their classification as cash equivalents.
For corporate treasurers, such classification offers clear benefits. By treating EMTs as cash equivalents, companies can simplify ledger entries, avoid fair value revaluation, and eliminate the need to record gains or losses when making or receiving stablecoin payments. In essence, EMTs become operationally like traditional cash or e-money balances enhancing both accounting efficiency and real-time liquidity management.
Accounting treatment under US GAAP
US GAAP are the standard accounting rules followed in the country. While US GAAP has historically lacked specific guidance on stablecoins, the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), signed into law on 18 July 2025, marks a significant step. This act, by imposing strict requirements such as 1:1 backing with highly liquid assets and clear redemption rights, is expected to provide a framework that supports the classification of regulated payment stablecoins as cash equivalents.
The determining factor for accounting remains the structure and use case. If a company uses MiCAR-compliant stablecoins in a manner consistent with cash equivalents such as temporary parking of liquidity or settling payables, they could be recorded as such, if redemption rights are enforceable and there is negligible risk of value fluctuation.
Tax treatment under US Law
Even if a stablecoin qualifies as a cash equivalent under US GAAP, a separate challenge arises under US tax law. The Internal Revenue Service (IRS) classifies all virtual currencies, including stablecoins, as property. This means that any use of a stablecoin for payments can trigger a taxable event if the value at the time of payment differs from its acquisition cost. Even in the case of a 1:1 USD peg, technical fluctuations can result in capital gains or losses, requiring tracking and reporting. This introduces an added compliance burden that can complicate otherwise clean treasury workflows, potentially deterring widespread adoption by US corporate treasuries despite their operational benefits. Until IRS guidance is updated, this remains a practical and legal obstacle to seamless stablecoin usage in US-based operations.
CBDCs versus EMTs
CBDCs are government-issued digital versions of fiat money, intended to function as legal tender. While concepts like the digital euro or a US digital dollar are being explored and some wholesale pilots are ongoing, retail CBDCs remain unlaunched and unavailable for commercial adoption. In the US, legislation currently prohibits issuing a retail CBDC without Congressional approval. By contrast, MiCAR-compliant EMTs are live today offering regulatory clarity, fiat backing, and a credible path to cash-equivalent accounting. For treasurers, EMTs are the actionable option.
Summary table: Accounting view of payment stablecoins
Treasury takeaways
For corporate treasurers navigating the evolving landscape of digital assets, several key points stand out regarding regulated stablecoins:
MiCAR's clarity: The EU's MiCAR provides crucial regulatory certainty for EMTs, making them strong candidates for cash equivalent classification and significantly reducing complexity for treasury operations.
Cash equivalent potential: MiCAR-compliant stablecoins are strong candidates for treatment as cash equivalents under IFRS and potentially US GAAP, which fundamentally simplifies accounting by eliminating the need for fair value revaluations.
US tax hurdle: Despite potential cash equivalent accounting treatment, US tax law classifies stablecoins as property, creating a significant ongoing compliance burden due to potential taxable events on each transaction.
Operational advantages: Regulated stablecoins offer transformative benefits such as real-time settlement, 24/7 availability, and programmability, enhancing liquidity management and payment efficiency.
EMTs are actionable now: Unlike theoretical retail CBDCs, MiCAR-compliant EMTs are operational today, offering a practical and immediate path for treasurers to integrate digital assets into their workflows.
A serious proposition
Stablecoins, once seen as a novelty, are now moving into the realm of serious financial infrastructure, especially under the guidance of MiCAR. For treasurers, this marks an opportunity to incorporate digital assets into traditional workflows without introducing undue complexity. The accounting treatment under IFRS, and potentially US GAAP, supports this shift by allowing these assets to be treated as cash equivalents, streamlining treasury operations and reducing reporting burdens.
While regulations such as MiCAR and the GENIUS Act provide a framework for stablecoin stability, treasurers should remain alert to potential risks. These include the creditworthiness of the stablecoin issuer, the reliability of the underlying blockchain technology, and the possibility of future regulatory changes that could affect the stablecoin's status or operations. It is crucial for treasury teams to conduct thorough due diligence on stablecoin providers and stay informed about evolving regulations.
Only regulated, fiat-backed stablecoins, such as those compliant with MiCAR, are suitable for corporate treasury use.
As the regulatory landscape evolves, stablecoins may become as common in corporate payment rails as commercial bank transfers or SEPA payments are today. With the right structure and under the right framework, stablecoins don’t just fit into treasury, they can enhance it. For treasurers looking to future-proof their operations and gain a competitive edge in the digital economy, understanding and strategically adopting regulated stablecoins is becoming an imperative.
