Wharton Launches Framework to Demystify Stablecoins for Corporate Finance Leaders

A Wharton professor is attempting to solve what he sees as a fundamental communication problem: finance executives and regulators still don't understand what stablecoins actually are, even as the digital assets approach mainstream adoption.

Kevin Werbach, a professor of legal studies and business ethics at Wharton, has released what he's calling the "Stablecoin Toolkit"—an academic framework designed to clarify how these blockchain-based instruments work and where they fit in the global financial system. The effort comes as corporate treasurers increasingly encounter stablecoins in cross-border payments and cash management, often without clear guidance on their legal status or operational risks.

"Stablecoins are often misunderstood," Werbach said in a podcast released February 13, explaining that the confusion stems from conflicting definitions and regulatory uncertainty. His toolkit aims to provide what he describes as "clearer definitions" and a coherent view of how these assets bridge traditional finance and digital markets.

The timing matters for CFOs. Stablecoins—cryptocurrencies designed to maintain a stable value by pegging to fiat currencies like the dollar—have moved from crypto-native speculation to practical treasury applications. Companies exploring real-time settlement or international payments increasingly confront the question of whether stablecoins are currencies, securities, payment instruments, or something else entirely. The answer determines which regulators have jurisdiction, what compliance requirements apply, and whether finance teams can actually use them.

Werbach's framework attempts to cut through this ambiguity by establishing consistent terminology and mapping stablecoins onto existing financial and legal categories. The toolkit addresses what he characterizes as a gap between how stablecoins function technically and how they're understood by traditional finance professionals.

The academic intervention reflects a broader challenge facing corporate finance: the infrastructure for moving money is fragmenting into traditional rails (SWIFT, ACH, wire transfers) and blockchain-based alternatives, but the rulebook hasn't caught up. Finance leaders are left making operational decisions—whether to accept stablecoin payments from customers, whether to hold them as cash equivalents, whether to use them for supplier payments—without clear regulatory guidance.

For controllers and treasurers, the practical question isn't whether stablecoins are interesting technology. It's whether they can be reconciled on a balance sheet, how they're classified for tax purposes, and what happens if the peg breaks. Werbach's toolkit doesn't answer all these questions, but it attempts to create a common language for asking them.

The framework also addresses regulatory frameworks, acknowledging that policymakers worldwide are still determining how to classify and oversee these instruments. That regulatory uncertainty has kept most corporate finance departments at arm's length, even as payment volumes grow.

What remains unclear is whether academic clarity will translate into regulatory action. Finance executives have been waiting for definitive guidance on stablecoin treatment for years, and a Wharton toolkit—however well-constructed—doesn't carry the force of an SEC ruling or a Treasury Department opinion letter.

The broader implication: stablecoins are no longer a crypto curiosity. They're becoming infrastructure, and finance leaders need to understand them whether they plan to use them or not. Werbach's effort suggests that even explaining what they are requires building new conceptual frameworks from scratch.