How a High-Growth Fintech Infrastructure Company Stabilized Financial Operations Through CFO Advisory and Technical Accounting Support

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How a High-Growth Fintech Infrastructure Company Stabilized Financial Operations Through CFO Advisory and Technical Accounting Support

Overview

A fast-scaling digital asset and fintech infrastructure company approached Ridgeway Financial Services seeking clarity, structure, and compliance in an environment where traditional accounting processes were failing to keep up with operational complexity. The client operated multiple subsidiaries, processed large volumes of blockchain-based transactions, issued and redeemed stablecoins, and maintained more than fifty bank and crypto wallets across global entities.

The organization faced rapid growth, fragmented financial data, complex intercompany movements, and evolving regulatory expectations. RidgewayFS provided comprehensive CFO Advisory, technical accounting, and digital-asset financial controls support to stabilize the company’s financial reporting and prepare it for investor scrutiny, audits, and regulatory review.

The Challenges

The client’s core challenges fell into four categories:

1. Complex Digital-Asset Operations

The company managed:

  • corporate wallets
  • user wallets
  • custody platforms (Fireblocks, DFNS)
  • developer prefunding accounts
  • stablecoin issuance, redemption, and reserve workflows

Matching on-chain and off-chain activity was becoming a major operational constraint.

2. Multi-Entity Structure With High Transaction Volume

The business operated through multiple subsidiaries, each with its own set of bank accounts, wallets, and intercompany activity.
Unreconciled intercompany balances, user liabilities, and developer funding movements created significant financial reporting risk.

3. Lack of Clear Accounting Policies for Digital Assets

Accounting treatment for stablecoins, digital asset reserves, custodial funds, SAFE instruments, fair value adjustments, and revenue recognition required specialized guidance.

The organization needed a framework aligned with US GAAP, ASC 820, ASC 606, and digital-asset industry practices.

4. Audit & Regulatory Readiness

The business was preparing for:

  • external audits
  • institutional due-diligence reviews
  • regulatory registration pathways

They required:

  • clear documentation
  • walkthroughs
  • internal control narratives
  • reserve analyses
  • supporting schedules
  • a consistent, defensible financial model

Our Approach: CFO Advisory + Technical Accounting + Digital Asset Expertise

RidgewayFS deployed a structured, multi-phase solution.

Phase 1: Financial Diagnostic and Systems Mapping

We began by mapping every:

  • bank account
  • Fireblocks wallet
  • DFNS wallet
  • stablecoin reserve pool
  • on-chain user custody balance
  • FBO and restricted accounts

Using the client’s data plus a robust digital asset audit methodology

we built a unified financial architecture that clearly separated:

  • corporate assets
  • user custodial assets
  • stablecoin reserves
  • developer prefunding liabilities
  • intercompany flows

This eliminated ambiguity and set the foundation for reliable reporting.

Phase 2: Intercompany Structure, Consolidation Logic, and Eliminations

The client’s raw trial balances included:

  • stablecoin reserve assets
  • stablecoin issuance liabilities
  • intercompany due-to / due-from accounts
  • off-balance-sheet custodial assets

Using the reference TB data provided by the client

we built:

  • complete intercompany matrices
  • elimination entries
  • reserve matching schedules
  • custodial vs corporate asset segregation
  • reconciliation procedures between entities

This ensured consolidated financial statements were GAAP-aligned and free from double-counting.

Phase 3: Stablecoin Reserve Accounting and Liability Matching

One of the most important problems: ensuring every unit of the client’s stablecoin issuance was fully supported by corresponding reserve assets.

We developed:

  • a reserve-to-liability matching model
  • automated reconciliation logic
  • classification rules for stablecoins held by the company vs users
  • SAB 122 and custodial asset disclosure assessments

Based on the TB structure and account mapping

we categorized all accounts from 11020 through 11310 as reserve-backing assets and tied them to the total issuance liability.

This became a core part of the client’s audit readiness pack.

Phase 4: Technical Accounting & Policies

We drafted formal accounting policies covering:

  • digital asset classification
  • fair value measurement
  • intangible vs fair value elections under ASU 2023-08
  • complex SAFE instruments and valuation
  • revenue recognition for settlement fees, FX, spread income, and platform fees
  • developer prefunding and user liability models
  • custodial asset disclosures and off-balance-sheet treatment

We also prepared memos and templates for internal controls, including:

  • wallet ownership proofs
  • reconciliation procedures
  • valuation sources
  • related-party identification
  • fraud-risk assessment in blockchain environments

These became part of the client’s long-term financial governance.

Phase 5: Audit Preparation & Documentation Package

RidgewayFS supported the client’s upcoming audit by preparing:

  • complete planning documentation (similar to 2100–2400 sequences)
  • internal control walkthroughs
  • risk assessment narratives
  • reserve roll-forwards
  • wallet lists and ownership procedures
  • valuation support
  • revenue testing frameworks
  • fair value analysis of SAFE liabilities
  • consolidation workpapers
  • elimination journals
  • updated chart of accounts for digital-asset operations

We used methods consistent with the blockchain audit guide

ensuring alignment with GAAS and PCAOB expectations.

Outcomes

1. Clean, Defensible Financial Statements

The company achieved a clear and accurate representation of:

  • corporate assets
  • user custodial assets
  • stablecoin reserves
  • operational liabilities
  • intercompany balances

This significantly reduced audit risk.

2. Strengthened Internal Controls

We established:

  • wallet reconciliation controls
  • reserve verification controls
  • role-based access structures
  • financial reporting workflows
  • segregation of user vs corporate asset logic

These controls materially improved operational reliability.

3. Full Audit Readiness

The audit file was ready for external review, including:

  • control documentation
  • supporting schedules
  • reconciliations
  • reserve analyses
  • valuation methodologies
  • technical accounting memos

The organization could now move through external audit and investor due diligence with confidence.

4. Leadership Visibility and Investor Confidence

The CFO, board, and investors gained:

  • transparent insight into digital-asset activity
  • a dependable month-end close process
  • clarity around risk exposures
  • financial reporting aligned with GAAP

This improved strategic decision making and credibility in fundraising conversations.

Why This Case Matters

Digital asset and fintech infrastructure companies face financial challenges that traditional accounting firms are not equipped to handle. Ridgeway Financial Services combines CPA-level GAAP expertise with digital-asset fluency to bridge that gap.

This engagement demonstrates how specialized CFO Advisory can stabilize a rapidly scaling fintech business and prepare it for institutional capital, regulatory scrutiny, and operational maturity.

Services Provided

  • CFO Advisory
  • Technical Accounting
  • Digital Asset & Stablecoin Accounting
  • Multi-Entity Consolidation
  • Intercompany Accounting
  • Audit Preparation
  • Internal Controls & Process Design
  • ASC 820, ASC 606, and Financial Policy Development

Interested in Similar Support?

If your fintech, crypto, or digital commerce company needs specialized CFO, accounting, or audit-readiness support, Ridgeway Financial Services can help.

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