The Statement of Digital Asset for Transparent US GAAP Reporting.

What Is SoDA and Why Is It Necessary?

‍Sam Leichman: SoDA is terrific for telling the story of a point in time, but its real value comes from showing a token roll-forward at the wallet-asset level. From beginning of period to end, it ties back to the balance sheet, providing clarity CFOs need to trust what’s in their wallets—whether it’s operational tokens, restricted funds, or something else entirely. Without this structure, businesses often have a hard time reconciling their blockchain activity with the financial statements that stakeholders rely on.

Moreover, SoDA ensures that these roll-forwards don’t exist in isolation but are integrated into the larger financial reporting framework. This means finance teams can see not only where the tokens are but also what their purposes are—whether they're liquid for operational use, tied up in staking, or locked due to regulatory restrictions. It simplifies a process that has historically been opaque and overly complex, particularly for CFOs who are still adapting to the nuances of blockchain assets​.

How Does SoDA Align with Current Regulations?

‍David Byrd: SoDA aligns closely with FASB ASU 2023-08 by introducing fair market value reporting, but it also goes beyond. The ASU focuses on specific types of assets, and SoDA ensures that even excluded categories like NFTs and tokenized RWAs are reported transparently. By providing this level of detail, SoDA creates a much-needed bridge between on-chain transactions and the accounting frameworks companies rely on.

The interplay between FASB’s requirements and SoDA’s design highlights how forward-thinking this framework is. While ASU 2023-08 pushes organizations to value assets more accurately, it doesn't address liquidity or usability—two areas where SoDA excels. For accountants managing these gaps, SoDA becomes an indispensable tool for compliance and clarity, especially as businesses adopt more complex asset structures​.

What what makes SoDA practical for finance teams?

‍Richard Pasquin: One of SoDA’s strengths is its integration with subledger platforms. These tools aggregate wallet activity, automate tracking, and push clean data into general ledger systems. This reduces manual effort and increases accuracy, which is critical for large organizations handling diverse digital assets. The practical benefits aren’t just about saving time but ensuring that reporting processes are reliable and repeatable.

SoDA’s compatibility with existing systems also makes adoption seamless for many organizations. By providing structured data outputs that fit neatly into workflows already in place, it reduces friction and enhances operational efficiency. For finance teams navigating the challenges of multi-token ecosystems, this alignment with technology and process is a game-changer​.

What Are the Key Features of SoDA? how do Wallet/Asset Pairs contribute to transparency?

‍Sam Leichman: Wallet/Asset Pairs are the foundation of SoDA. By tagging each wallet and token with its specific purpose—like operational reserves or restricted grants—organizations can remove ambiguity and provide a clearer picture of liquidity and usability. For instance, CFOs can easily determine how much of their assets are readily available for transactions versus locked in long-term programs.

This approach doesn’t just clarify the numbers; it also helps tell a story about how an organization uses its assets. By linking wallet activity directly to financial statements, SoDA makes it easier for stakeholders to understand the strategic decisions behind asset allocations. This kind of visibility is critical for gaining trust from investors and auditors alike​.

What challenges should accountants prepare for in the future?

David Byrd: The big ones are tokenized real-world assets and programmable tokens. SoDA isn’t just looking at today’s challenges but is iterating for tomorrow’s edge cases. It evolves to accommodate these innovations, ensuring businesses stay ahead of the curve. For instance, as programmable tokens introduce more granular control over asset behavior, SoDA’s structure will help translate that complexity into clear financial statements.

What sets SoDA apart is its adaptability. The framework’s ability to incorporate emerging asset classes without overhauling its core principles ensures its relevance in a fast-changing landscape. For accountants, this means having a tool that grows with their needs rather than becoming obsolete as blockchain technology evolves​.

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To access the full discussion and learn more about SoDA, watch the webinar replay here.

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