2 MIN READ
UPDATED APR 20, 2026Last Updated: April 2026
Classification: External / Client-Facing
Contact: [email protected]
Non-Custody Model
Toku operates on a strict non-custody model. This is an architectural decision, not a policy choice. Toku never takes custody or control of client funds. Clients select their custody provider and keep full control of private keys and transaction approval.
Toku's role is to calculate payroll settlement amounts, propose transactions to the custody platform, and confirm settlement after client-approved execution. Toku does not hold funds, private keys, or signing authority at any point.
Transaction Flow
The stablecoin payment process follows a strict approval chain:
- Calculation: Toku calculates the stablecoin settlement amount based on payroll data from the client's HRIS and payroll platforms.
- Proposal: Toku proposes the transaction to the client's custody provider via authenticated API, including recipient wallet address, amount, and internal reference ID.
- Client Approval: The client reviews and approves the transaction through their custody provider's interface, typically using multi-signature or policy-engine approval.
- Execution: The custody provider executes the approved transaction on the blockchain.
- Confirmation: Toku confirms settlement and updates payment records with the transaction hash and timestamp. Toku cannot unilaterally execute any transaction. Client approval is enforced at the custody platform level, outside of Toku's infrastructure.
Supported Stablecoins and Assets
Toku supports commonly used stablecoins including USDC (Circle), PYUSD (PayPal), USDT (Tether), RLUSD (Ripple), and GUSD (Gemini) across multiple blockchain networks. Clients can enable specific stablecoins and networks based on their preference. Toku can accommodate virtually any network and token combination.
Custody Provider Integrations
Toku integrates with institutional-grade custody providers that maintain their own security certifications and compliance programs:
| Provider | Integration Type |
|---|---|
| Fireblocks | API integration with IP whitelisting |
| Coinbase Prime | API integration |
| Safe (Gnosis) | Smart contract-based multi-sig |
| Squads | Solana-native multi-sig |
| Bridge | Settlement integration |
| Anchorage | API integration |
Each integration uses scoped API credentials that can propose transactions but cannot sign or execute them.
Wallet Security
Employee wallet addresses are collected through the Toku platform and stored encrypted (AES-256 at rest). Wallet addresses are used exclusively for routing stablecoin payments. Toku does not have access to employee private keys or the ability to move funds from employee wallets.
Blockchain Transaction Integrity
All completed transactions are recorded with the on-chain transaction hash, providing an immutable, independently verifiable record of every payment. Clients and employees can verify any transaction directly on the relevant blockchain explorer.
Separation of Duties
The non-custody model creates a natural separation of duties. Toku handles calculation and proposal. The client handles approval and execution through their custody provider. No single party can unilaterally move funds. This is enforced at the infrastructure level, not by policy alone.