Digital Assets
Blockchain-verified reconciliation, defensible token fair value, and staking income treatment that stands up to auditors who are still learning this asset class themselves.
Why this is my specialty
Cryptocurrency fund NAV isn't just "look up the price and multiply." Under ASC 820, every token position needs a defensible fair value determination — and digital assets break most of the assumptions that fair value hierarchy was built around. Thinly-traded tokens don't have a clean Level 1 quote. Locked or vesting tokens need a discount for lack of marketability (DLOM) that can actually survive audit scrutiny. Staking rewards raise real revenue-recognition questions about when income is earned versus merely accrued.
I've built my practice around exactly this frontier: blockchain-verified reconciliation processes, on-chain verification workflows (including Solana and other major chains), and fair value models specifically for tokens, wrapped assets, LP positions, and staked balances. This isn't a service I bolted on — it's the area I actively research and where I do some of my most technical work.
What I handle
The technical detail that matters
A liquid, exchange-traded token might genuinely be Level 1. A token from a private raise, a locked allocation, or a thinly-traded pair usually isn't — and treating it that way invites auditor pushback. I document the leveling rationale for every position, not just the headline number.
A token that unlocks in 18 months is not worth the same as its liquid counterpart today. I build option-pricing-based or empirical DLOM models tailored to the unlock schedule, volatility, and liquidity of each token — not a flat, unsupported haircut.
Is a staking reward income when it's earned, when it vests, or when it's claimed and liquid? The answer affects both your P&L and your investors' tax reporting. I set a consistent, defensible policy and apply it every period.
Multi-sig wallets, custodial exchanges, staking providers, and DeFi positions all need to reconcile to a single ledger truth. I build blockchain-verified reconciliation workflows so what's on-chain matches what's on your books — every month, not just at audit.
Regulatory & reporting context
Accurate token valuation is the foundation, but it feeds into several other reporting obligations that digital asset managers can't treat as an afterthought.
LPs in a digital asset fund expect the same clarity as any other fund investor: a monthly or quarterly statement showing NAV per unit, performance drivers, and a summary of the fund's token positions by custodian and chain.
Every token acquisition, staking reward, and disposition needs cost basis tracking precise enough to support K-1 preparation and, where relevant, any fund-level tax filings.
Which exchanges, custodians, and staking providers hold fund assets, under what legal arrangement, and with what insurance or indemnification — documentation auditors and increasingly LPs want to see directly.
Changing your DLOM approach or staking income policy between periods without disclosure undermines comparability. I document methodology changes explicitly whenever facts and circumstances require an update.
Working with what you already have
You don't need to switch custodians or exchanges to get audit-ready books. The reconciliation and valuation process is built around your existing infrastructure.
Bring your custodian setup, chains, and unlock schedules to a consultation — I'll walk through exactly how the valuation and reconciliation process would work.
Schedule a ConsultationGo deeper: how DLOM, staking, and locked tokens are valued, browse all fund accounting services, or see how digital-asset valuation is scoped.