Figure’s CFO Supports Treating Stablecoin as Cash

Why It Matters

Reclassifying stablecoins as cash would standardize reporting, lower compliance costs, and accelerate fintech adoption of digital assets across the financial industry.

Key Takeaways

• Figure CFO urges FASB to reclassify stablecoins as cash
• Current standards treat stablecoins as intangible assets, causing ambiguity
• Figure's $YLDS stablecoin is SEC‑registered and interest‑bearing
• HELOC closures now average ten days, versus industry 45 days
• FASB project approved last fall aims to clarify digital‑asset accounting

Pulse Analysis

Stablecoins sit in a gray area under U.S. GAAP, currently recorded as intangible assets. That treatment forces firms to apply amortization and impairment tests that do not reflect the liquidity of a dollar‑pegged token. Figure Technology’s CFO Macrina KgIl is lobbying the Financial Accounting Standards Board to reclassify stablecoins as cash or cash equivalents, a move that would align accounting with the asset’s true nature. The FASB launched a technical project last fall to address digital‑asset accounting, and a decision this year could set a precedent for the entire fintech sector.

Figure’s push is more than a bookkeeping issue; it underpins the company’s $8.7 billion market valuation and its blockchain‑native loan marketplace. After merging with Figure Markets, the firm issued $YLDS, an SEC‑registered, interest‑bearing stablecoin used to fund consumer home‑equity loans. By treating $YLDS as cash, Figure can streamline balance‑sheet reporting, reduce compliance costs, and present a clearer picture of liquidity to investors. Faster loan closing times—five to ten days versus the industry’s 45‑day average—are already a competitive advantage that could be amplified by clearer accounting rules.

If the FASB adopts the cash‑equivalent classification, other crypto‑enabled lenders and payment platforms are likely to follow, accelerating mainstream acceptance of stablecoins in corporate finance. Clear guidance would also diminish audit disputes and enable more accurate risk‑adjusted pricing of digital‑asset‑backed products. However, regulators may still scrutinize the underlying reserves and governance of each token, meaning firms must maintain robust transparency. Overall, the accounting shift could lower barriers for traditional banks to integrate stablecoins, broaden the pool of capital for blockchain‑based lending, and reshape the competitive dynamics of the broader financial services industry.