💸 Toku: Stablecoin Payroll – Overview & FAQ

Last updated: October 13, 2025

Toku’s Stablecoin Payroll allows employees to receive part of their salary in stablecoins while keeping employer payroll processes, tax compliance, and reporting intact.

There are two ways to use Stablecoin Payroll:

1. API Integration – For customers who run their own payroll stack (Workday, UKG, or other).
2. EOR/HRIS – For customers who use Toku as an Employer of Record and leverage Toku HRIS. This article explains how both paths work, treasury/custody considerations, compliance requirements, and answers to the most common questions.

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🎯 What is Stablecoin Payroll?

Stablecoin Payroll is an optional benefit that lets employees elect to receive a portion of their net pay in stablecoins such as USDC, without disrupting existing payroll processes.

• API Customers: Stablecoin Payroll integrates directly with your payroll system. All activity is managed inside the Stablecoin Payroll product.
• EOR Customers: Stablecoin Payroll is embedded inside Toku HRIS/TGA, alongside elections, onboarding, and reporting.

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🚀 Why Teams Use Stablecoin Payroll

• Seamless Setup: API-first integration with Workday, UKG, Gusto, or other vendors. EOR customers manage directly in Toku HRIS/TGA.
• Compliance First: Enforces minimum wage requirements automatically and provides country-specific tax resources.
• Global Scalability: Works across borders, minimizing FX fees and wire delays.
• Employee Flexibility: Lets employees choose a stablecoin allocation that fits their preferences.

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⚙️ How It Works

Option 1: API Integration

For customers running their own HR/payroll stack:

1. Toku integrates with payroll providers (e.g., Workday, UKG) via API or CSV.
2. Payroll data (gross, deductions, net) is synced, and stablecoin allocations are posted as net deductions.
3. Compliance Buffer: Elections are capped to ensure take-home fiat remains above local minimum wage.
4. Company receives transaction proposals from Toku and can initiate payments through its chosen custody solution. Important to note: The company retains custody of funds, Toku does not remit payments.
5. Toku confirms settlement with blockchain transaction hashes for reporting.

Option 2: EOR/HRIS

For customers using Toku as Employer of Record:

1. Employees log into Toku HRIS and elect a flat stablecoin amount from their net pay.
2. Payroll sync runs automatically inside Toku HRIS.
3. Elections are approved and executed as part of the normal payroll remittance process.
4. Compliance Buffer: Elections are capped to ensure take-home fiat remains above local minimum wage.
5. Employees see stablecoin deductions reflected on payslips and in annual reporting.

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🔐 API Product: Security, Custody & Compliance

• Custody: For API Stablecoin Clients, the employers always retain custody of funds. Toku never touches client money.
• Custody Options: Employers choose their preferred custody and treasury setup. Toku integrates with it for execution and reporting.
• Data Protection: GDPR compliant, SOC 2 certified.

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🌍 International Payroll & FX Conversion

• Employees elect in their local currency. At payout, amounts are converted into USDC using real-time market rates.
• Multiple payroll vendor runs can be combined into a single deduction file.
• Country-specific compliance guides (legal, accounting) are available on request.

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🧑‍💼 Employer Benefits

• Attract and retain crypto-native talent.
• Automate on-chain payroll, deductions, and reporting.
• Minimize FX costs and reduce cross-border banking friction.
• Maintain treasury control while leveraging Toku for workflow automation and reporting.

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🙋 Employee Experience

• Stable Value Across Borders: Employees can hold part of their pay in a stablecoin (like USDC), protecting value in places where local currencies are volatile or inflation is high.
• Faster Access to Funds: Stablecoins settle within hours, often much quicker than cross-border wires, giving employees access to their pay without banking delays.
• Global Utility: USDC can be used globally to send remittances, convert into local currency, or transact directly with merchants and exchanges.
• Financial Flexibility: Employees choose how much of their net pay to allocate, allowing them to balance local fiat for daily expenses with stablecoins for savings or transfers. This deduction amount can be changed or removed at anytime.

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📦 Included with Stablecoin Payroll

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Note for EU Customers

Due to local regulations (such as the EU Transfer of Funds Regulation), you may be required to provide additional information when selecting self-custody for your stablecoin deduction. If you see this requirement during onboarding, please reach out to our support team at [email protected] and we’ll provide the necessary details.

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💬 Frequently Asked Questions

Q: Which path should I use?

A: If you already manage payroll internally with Workday, UKG, or another system, use the API Integration path. If Toku is your Employer of Record, stablecoin payroll is built into Toku HRIS/TGA.

Q: Who executes the payments?

A:

• API Customers: Employers execute payments through their treasury process. Toku proposes the transactions, but treasury teams approve and initiate them.
• EOR/HRIS Customers: Stablecoin disbursements are executed automatically as part of the regular payroll cycle managed by Toku. Q: Which custody partners are supported?

A: Employers can use their preferred custody provider. Toku integrates with whichever solution their treasury team chooses.

Q: How are payments confirmed?

A: Payments are confirmed by blockchain transaction hashes returned from the custody solution, which sync back into Toku for reporting and audit.

Q: How does integration work with providers like Workday or UKG?

A: Integration follows a staged setup and testing process before going live, with some differences between providers:

• Setup & Testing
  • Integrations begin in preview or sandbox environments so configurations can be validated without real funds.
  • About 90% of the setup is standardized, with the remaining 10% requiring adjustments based on each customer’s HRIS configuration.
  • For pilots or production, the integration must run in the live environment to ensure actual payments and deductions are tracked correctly.
• Workday
  • Toku performs an initial pull of employee information into the platform.
  • Payroll deductions for stablecoin elections are managed during the live payroll run once the connection is configured.
• UKG
  • Toku supports a two-way sync, meaning payroll and deduction data can both be pulled from UKG and pushed back into it.
  • This ensures elections and payroll changes flow in both directions. Q: What happens when employees are terminated?

A: Toku does not remove terminated employees from the system. Instead, they are marked as inactive:

• This ensures reporting and compliance records remain intact.
• Inactive employees keep access to their accounts for payslips and historical reporting.
• No new elections or changes can be made once the employee is inactive. Q: Are there tax differences when paying in stablecoins?

A: No. Taxes are calculated first; stablecoin allocations are taken from the remaining net pay. Payslips reflect the deduction as if it were a cash payment.

Q: What conversion rate is used?

A: Market rates are pulled on payroll day. Conversions and distributions are executed quickly (typically within ~1 hour) to ensure the closest possible rate.

Q: When are elections locked?

A: Elections are locked after the 10th of the month. Changes made after this point apply to the next cycle.

Q: Do EOR employees need a separate login?

A: No. Elections are made within Toku HRIS / TGA product.

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📩 Next Steps

Visit our Help Center for more information on this product.

• Enable Stablecoin Payroll as an EOR Client: Toku: Enable Stablecoin Payroll
• EOR Employee Communications: Toku: Stablecoin Payroll Set Up
• API Stablecoin Set Up: Contact [email protected] CONFIDENTIALITY NOTICE: resource and any attachments are only for the use of the intended recipient and may contain information that is privileged, confidential or exempt from disclosure under applicable law. If you are not the intended recipient, any disclosure, distribution or other use of this resource or attachments is prohibited. If you have received this resource in error, please delete and notify the sender immediately. Thank you.