Coinbase and Integral Partner to Ease Digital Asset Accounting

Coinbase and Integral have announced a partnership to bring Coinbase Prime users next-gen accounting solutions through an investment from Coinbase Ventures. The solutions will cover assets held inside and outside of Coinbase, Bankless Times learned from a press release.

Challenges

Digital asset accounting, which involves tracking and managing digital assets like cryptocurrencies, tokens, and other forms of digital property, comes with several unique challenges.

These assets are a relatively new class, and regulations are still evolving. Different jurisdictions may have varying rules, and new regulations can be introduced, making it challenging to stay compliant.

The tax treatment of digital assets can be complex and varies by country. Tracking and reporting gains, losses, and transactions for tax purposes can be challenging.

Many digital assets do not fit well into traditional accounting software and processes. Specialized tools and expertise may be needed.

Some digital assets, like privacy coins, are designed to be anonymous, making it difficult to trace transactions and maintain transparency.

The solutions

Integral's solutions give accountants, controllers, finance executives, and fund administrators means of obtaining an aggregate view of all of their digital assets on and off Coinbase. This alleviates the processes of accounting, bookkeeping, and reporting.

Shan Aggarwal, Vice President and Head of Corporate Development and Ventures at Coinbase, said:

Integral's platform streamlines crypto accounting and treasury management, resolving a major headache for institutions and businesses that interact with crypto assets. We are thrilled to invest and collaborate with Integral in offering these services to Coinbase Prime clients.

Gui Laliberté, CEO of Integral, added:

Blockchain is a breakthrough for enhancing trust in financial systems, but the increased accounting and compliance complexity makes it hard for businesses to adopt blockchain with confidence. This funding and collaboration positions Integral to solve increasingly complex accounting problems for businesses. We're grateful that Coinbase shares our vision to create a better, high-trust financial system.

Integral will use the investment from Coinbase Ventures to give Prime clients asset data coverage. It also plans to build accounts receivable and accounts payable automations among other complementary solutions to support web3 operations.