In this Hot Topic, we delve into how an entity assesses the accounting owner of custodied digital assets and when custody is a performance obligation under ASC 606.
All entities that either:
- Engage unrelated custodians to hold their digital assets; or
- Act as a digital asset custodian for individuals or other entities
- Accounting ownership of digital assets purchased through a custodial wallet
- Accounting ownership of digital assets controlled by the depositor before transfer into a custodial wallet
- Identifying custodial performance obligations under the revenue standard (ASC 606)