diff --git a/src/components/expenses/AssetSelector.tsx b/src/components/expenses/AssetSelector.tsx
new file mode 100644
index 0000000..403d5e0
--- /dev/null
+++ b/src/components/expenses/AssetSelector.tsx
@@ -0,0 +1,112 @@
+"use client";
+
+import { Select } from "@/components/ui/input";
+import { AssetBadge } from "@/components/asset-badge";
+import { SETTLEMENT_ASSETS, STABLE_ASSET } from "@/lib/constants";
+import { convertToFiat, useCurrencyRates } from "@/hooks/useCurrencyRates";
+import type { SupportedFiatCurrency } from "@/lib/currency";
+
+export interface AssetSelectorProps {
+  /** Currently selected asset code (one of the configured settlement assets). */
+  value: string;
+  onChange: (assetCode: string) => void;
+  onBlur?: () => void;
+  id?: string;
+  /** Transition labels for the available options (e.g. "native", "stable"). */
+  name?: (code: string) => string;
+  ariaInvalid?: boolean;
+  ariaDescribedby?: string;
+  /**
+   * When provided, the selector renders a live fiat-equivalent of this crypto
+   * amount (in `fiatCurrency`) that updates as the user types/edits the
+   * amount — the "real-time conversion" half of issue #401.
+   */
+  cryptoAmount?: string;
+  fiatCurrency?: SupportedFiatCurrency;
+}
+
+/**
+ * Controlled multi-asset selector (issue #401).
+ *
+ * A neobrutalist `<select>` of the configured settlement assets (XLM native,
+ * the stable asset, and any custom trustline tokens) plus a live fiat
+ * equivalent preview. It is fully controlled — the parent owns `value` and
+ * `onChange` — so it composes with React Hook Form, local `useState`, or a
+ * draft store. Precision/rounding for the Stellar grid is delegated to the
+ * existing `src/lib/money` / `src/lib/currency` helpers so the dozens of
+ * decimal places (7 = 1 stroop) are never truncated here.
+ */
+export function AssetSelector({
+  value,
+  onChange,
+  onBlur,
+  id,
+  name: nameOf,
+  ariaInvalid,
+  ariaDescribedby,
+  cryptoAmount,
+  fiatCurrency = "USD",
+}: AssetSelectorProps) {
+  const selected =
+    SETTLEMENT_ASSETS.find((a) => a.code === value) ?? SETTLEMENT_ASSETS[0];
+
+  const equivalent = useLiveEquivalent(cryptoAmount, selected.code, fiatCurrency);
+
+  return (
+    <div className="space-y-1.5">
+      <Select
+        id={id}
+        value={value}
+        onChange={(e) => onChange(e.target.value)}
+        onBlur={onBlur}
+        aria-invalid={ariaInvalid}
+        aria-describedby={ariaDescribedby}
+      >
+        {SETTLEMENT_ASSETS.map((a) => (
+          <option key={a.code} value={a.code}>
+            {a.code}
+            {nameOf
+              ? ` (${nameOf(a.code)})`
+              : a.code === "XLM"
+              ? " (native)"
+              : a.code === STABLE_ASSET.code
+              ? " (stable)"
+              : ""}
+          </option>
+        ))}
+      </Select>
+
+      <div className="flex items-center justify-between gap-2 pt-0.5">
+        <AssetBadge code={selected.code} className="shrink-0" />
+        <span
+          className="truncate text-xs font-medium text-ink/60"
+          aria-live="polite"
+          data-testid="asset-equivalent"
+        >
+          {equivalent}
+        </span>
+      </div>
+    </div>
+  );
+}
+
+/** Fiat-equivalent of `cryptoAmount` in the selected asset, or a prompt. */
+function useLiveEquivalent(
+  cryptoAmount: string | undefined,
+  assetCode: string,
+  fiatCurrency: SupportedFiatCurrency
+): string {
+  const { rates } = useCurrencyRates(fiatCurrency);
+
+  if (!cryptoAmount) return "Enter an amount for a fiat preview.";
+
+  const numeric = Number(cryptoAmount);
+  if (!Number.isFinite(numeric) || numeric < 0)
+    return "Fiat preview unavailable.";
+
+  // Only the price-tracked assets (XLM / the stable asset) get a live quote.
+  const fiat = convertToFiat(cryptoAmount, assetCode, rates);
+  if (fiat === null) return "Fiat preview unavailable for this asset.";
+
+  return `≈ ${fiat} ${fiatCurrency}`;
+}
\ No newline at end of file
diff --git a/src/components/expenses/__tests__/asset-selector.test.ts b/src/components/expenses/__tests__/asset-selector.test.ts
new file mode 100644
index 0000000..2da0004
--- /dev/null
+++ b/src/components/expenses/__tests__/asset-selector.test.ts
@@ -0,0 +1,32 @@
+import { describe, expect, it } from "vitest";
+import { convertToFiat } from "@/hooks/useCurrencyRates";
+import type { CryptoToFiatRates } from "@/hooks/useCurrencyRates";
+
+const rates: CryptoToFiatRates = { xlm: 0.12, usdc: 1.0, live: true };
+
+describe("convertToFiat (AssetSelector conversion)", () => {
+  it("converts XLM and USDC to a two-decimal fiat string", () => {
+    expect(convertToFiat("100", "XLM", rates)).toBe("12.00");
+    expect(convertToFiat("100", "USDC", rates)).toBe("100.00");
+  });
+
+  it("accepts numeric input and trims to two decimals", () => {
+    expect(convertToFiat("10.555", "XLM", rates)).toBe("1.27");
+    expect(convertToFiat(120.5, "USDC", rates)).toBe("120.50");
+  });
+
+  it("returns null for untracked (custom trustline) assets", () => {
+    expect(convertToFiat("50", "RANDOM", rates)).toBeNull();
+  });
+
+  it("rejects invalid, missing or negative amounts", () => {
+    expect(convertToFiat("", "XLM", rates)).toBeNull();
+    expect(convertToFiat("abc", "XLM", rates)).toBeNull();
+    expect(convertToFiat("-5", "XLM", rates)).toBeNull();
+  });
+
+  it("returns null when the rate is zero/unavailable", () => {
+    const dead: CryptoToFiatRates = { xlm: 0, usdc: 0, live: false };
+    expect(convertToFiat("10", "XLM", dead)).toBeNull();
+  });
+});
\ No newline at end of file
diff --git a/src/components/expenses/add-expense-dialog.tsx b/src/components/expenses/add-expense-dialog.tsx
index e6536ab..b1f8554 100644
--- a/src/components/expenses/add-expense-dialog.tsx
+++ b/src/components/expenses/add-expense-dialog.tsx
@@ -12,7 +12,8 @@ import { cn } from "@/lib/utils";
 import { useCreateExpense } from "@/lib/queries";
 import { api } from "@/lib/api";
 import { handleApiError } from "@/lib/errorHandler";
-import { SETTLEMENT_ASSETS, STABLE_ASSET } from "@/lib/constants";
+import { SETTLEMENT_ASSETS } from "@/lib/constants";
+import { AssetSelector } from "@/components/expenses/AssetSelector";
 import type { GroupMember, SplitType, ExpenseShareInput } from "@/lib/types";
 import {
   AMOUNT_DECIMAL_PLACES,