A Compound v2 receipt token whose exchange rate against the supplied asset increases as lending interest accrues.
Unlike a rebasing token, a cToken's count stays fixed while its redemption value rises. The interest is still income; the question is when. The common position recognizes it at redemption, when it becomes accessible, and treats the cToken as a deposit receipt rather than a separate asset.
Unsettled. Because the interest is not accessible until redemption, the common position recognizes it at redemption. We document the position and apply it consistently.
Source: No IRS guidance as of September 2026; IRS Notice 2014-21 (property treatment)
Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.
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