FASB Accounting Proposal Could Boost Corporate Stablecoin Adoption

corporate stablecoin adoption — A proposed US accounting rule change could make holding stablecoins more attractive for corporations by allowing qualifying tokens to be classified as cash equivalents on balance sheets, according to a new report from Tempo.

The report examines an Accounting Standards Update proposed in August by the Financial Accounting Standards Board (FASB). Under current rules, corporate stablecoin holdings often do not count toward reported cash reserves, which can negatively impact liquidity ratios and loan covenants. The proposed overhaul would remove this barrier, making stablecoins more practical for treasury operations, payments, and settlements.

Tempo’s analysis notes a key requirement: companies must have direct redemption rights with the stablecoin issuer. For instance, simply buying USDC on an exchange would not qualify; a formal redemption arrangement, like the one between Coinbase and Circle, is necessary. The FASB proposal is open for public comment until November 19, after which the board will finalize the changes.

The accounting proposal follows the passage of the GENIUS Act in 2025, which established a federal regulatory framework for payment stablecoins set to take effect in 2027. These developments coincide with the US dollar-backed stablecoin market surpassing $300 billion.