Description

SoftLedger makes use of Coins in the Crypto module to be able to identify the asset to create transactions against. While any exchange traded asset (e.g Bitcoin, Ethereum, etc.) can be added as a Standard Coin, any asset can be brought in as a Custom Coin. These custom assets can be used in a variety of ways, as each custom asset created will also be created with the four Ledger Accounts that are added for each Coin created:

Common Use Cases

Coin Issuer

Many customers have a crypto asset that is in the early stages and is yet to be traded across exchanges. This coin may have been bought and sold over the counter to early investors or users of the coin, and therefore a new Custom Coin needs to be created so that these transactions can be recorded.

Crypto Exchange

While an exchange is likely offering products of common exchange traded assets, there is a difference between assets that are traded between customers on the platform, and assets bought and sold internally by the exchange itself. To be able to record these transactions separately with a set of ledger accounts for both types of transactions, crypto exchange customers will create a custom coin to mirror an existing coin. For example, an exchange could have a Bitcoin Internal Holdings Coin and a Bitcoin Customer Holdings Coin, like in the image below:

This type of set up would allow for reporting the holdings, transactions, balances, cost basis, etc. separately, so you can map the Ledger Accounts for each Coin to different places in financial reports if desired.

Alternative Solutions

Some customers use the Coins module in very unique ways, like issuing and tracking tokenized shares of an asset (e.g. building, artwork, equipment, etc.). So long as there is a need to apply quantities, rates for those quantities, and specifically identify cost layers to review cost basis and values for an asset, then the custom coin ability in SoftLedger can create the accounting treatment necessary to accomplish this.

For further questions on how best to use the Custom Coins feature in SoftLedger, reach out to support@softledger.com.