Crypto employer of record: the complete guide
Hiring someone abroad usually means setting up a local company or using an employer of record. When the person also wants to be paid in stablecoins, the question becomes how to do that without breaking local payroll and wage rules. This guide explains how a crypto employer of record handles it, where the legal limits are, and how to tell a compliant setup from one that isn't.
Definition
A crypto employer of record (crypto EOR) is an employer-of-record service that arranges local employment and payroll for employees in countries where you have no legal entity, and lets those employees receive some or all of their net pay in stablecoins such as USDC or USDT. The salary, tax withholding, social contributions and filings stay in the local currency. Only the form of the payout changes, and how it's set up depends on the country.
On this page:
- Definition
- How it works
- The legal framework
- How it works by country
- Crypto EOR vs alternatives
- Signs of a compliant setup
- Providers
- FAQ
- Cite this guide
- Methodology and disclosure
How a crypto EOR works, step by step
The employment relationship is set up exactly like any other EOR hire. The stablecoin part comes at the very end, after tax.
Set up the country
Before the offer, the EOR confirms how stablecoin pay is set up in that country and how much of net pay it can cover, because central bank, foreign exchange and reporting rules differ.
Sign a local employment contract
The EOR issues a contract that follows local employment law, with the salary set in local currency. You direct the person's day-to-day work.
The employee elects a pay mix
The employee chooses to receive some or all of their net pay in a stablecoin, or none. The choice is theirs.
Run payroll in local currency
Each pay cycle, gross pay, income tax withholding and social contributions are calculated in local currency and paid to the local authorities in local currency.
Fund the payroll
You pay the EOR the salary, employer costs and its fee. Depending on the provider, you can fund in fiat or from a stablecoin treasury.
Convert and pay out
The net pay the employee elected is converted, at a rate and time the agreement should spell out, and sent to their wallet on a supported network, and the rest goes to their bank account.
Keep local-currency records
Payslips, tax filings and year-end statements stay in local currency, with the conversion recorded for each payout.
How to pay wages in stablecoins compliantly
Yes, you can pay employees in stablecoins. Three rules shape how a compliant crypto EOR sets it up, and they start from how the law treats crypto.
Crypto and stablecoins are not money
Crypto and stablecoins aren't money. In the US, the IRS treats digital assets as property, not currency, for tax purposes (IRS, Digital assets). In the UK, HMRC "does not consider cryptoassets to be currency or money" (HMRC CRYPTO10100), and the Property (Digital Assets etc) Act 2025 confirms that digital things can be personal property in England and Wales and Northern Ireland. So the salary is set in money, and the stablecoin is the form in which the employee chooses to receive it.
Keep the salary in local currency
The ILO Protection of Wages Convention says wages payable in money "shall be paid only in legal tender" (ILO C095, Article 3) in the countries that ratified it, and many countries add central bank, foreign exchange and reporting rules. So the contract, payslip, withholding and filings stay in local currency, and the employee opts in to receive their net pay, or a share of it, in a stablecoin. How that payout is set up is confirmed country by country.
Tax crypto pay as ordinary wages
The IRS says the medium in which pay is made is generally immaterial for employment tax purposes, so the fair market value of virtual currency paid as wages is subject to income tax withholding, FICA and FUTA and is reported on Form W-2 (IRS Notice 2014-21, A-11). In the UK, HMRC generally treats exchange tokens as readily convertible assets, so PAYE applies (CRYPTO42100).
Let the employee choose
The stablecoin payout is the employee's election, not a condition of the job, and they can take part of their pay in local currency. Wage-payment rules protect how employees receive their pay, so keeping the choice with them is part of doing it properly.
How it works country by country
Yes, you can pay your team in stablecoins with Toku. Here's how it works in the countries this guide cites, and how to get the details for anywhere else.
How it works in the US
Yes, you can pay your team in the US in stablecoins with Toku. The salary is set in US dollars and runs through payroll as usual: federal income tax withholding, FICA and FUTA are calculated on the dollar value and paid in dollars, and the employee opts in to receive their net pay, or part of it, in USDC. The IRS says the fair market value of virtual currency paid as wages is subject to withholding and reported on Form W-2 (IRS Notice 2014-21, A-11). State wage-payment rules apply separately and are confirmed state by state, and the USDC payout is the employee's choice.
How the US treats crypto and stablecoins
The IRS says: "For U.S. tax purposes, digital assets are considered property, not currency." It lists stablecoins among them (IRS, Digital assets, page last reviewed or updated September 2, 2026). It has treated virtual currency as property since Notice 2014-21 in 2014, so paying someone in USDC is paying them in property worth its US-dollar value on the day.
Payment stablecoins also have their own federal statute. The GENIUS Act (Public Law 119-27, signed July 18, 2025) defines a payment stablecoin as a digital asset "that is, or is designed to be, used as a means of payment or settlement", whose issuer must redeem it for a fixed amount of monetary value and represents that it will keep a stable value. Its section 17 amends federal securities and commodities law so that a payment stablecoin issued by a permitted issuer is not a security or a commodity, and under section 20 the Act takes effect 18 months after enactment or 120 days after final regulations, whichever comes first.
Toku's US stablecoin payroll compliance guide covers the federal and state rules in more depth.
Toku handles the stablecoin payout, compliance and reporting (Toku, Stablecoin payroll). It describes itself as a "pioneering token payroll provider": founded in 2020, it started with token payroll in its first year and says it was built stablecoin-first rather than adding crypto payouts on top of fiat rails (Toku, About). Talk to us to learn how it works for your team.
How it works in the UK
Yes, you can pay your team in the UK in stablecoins with Toku. Salaries are set in pounds sterling and run through PAYE, and the employee opts in to receive their net pay, or part of it, in USDC. Where pay is delivered in tokens, HMRC "considers that exchange tokens generally will be readily convertible assets", so PAYE income tax and Class 1 National Insurance generally apply to them too (HMRC CRYPTO42100).
How the UK treats crypto and stablecoins
HMRC "does not consider cryptoassets to be currency or money" and taxes them by how they're used (HMRC Cryptoassets Manual, CRYPTO10100, updated November 28, 2025).
The Property (Digital Assets etc) Act 2025, which became law on December 2, 2025 and applies in England and Wales and Northern Ireland, confirms that a thing, "including a thing that is digital or electronic in nature", is not prevented from being the object of personal property rights merely because it is neither a thing in possession nor a thing in action. The Act doesn't name crypto; it covers things that are digital or electronic in nature.
Toku also has guides to stablecoin payroll in the UK and hiring through an employer of record in the UK.
Toku handles the stablecoin payout, compliance and reporting (Toku, Stablecoin payroll). It describes itself as a "pioneering token payroll provider": founded in 2020, it started with token payroll in its first year and says it was built stablecoin-first rather than adding crypto payouts on top of fiat rails (Toku, About). Talk to us to learn how it works for your team.
Any other country
Toku supports compliant payroll and payouts in 100+ countries, and wherever it offers stablecoin pay the structure is the same: the salary is set and taxes are withheld in local currency, and the employee opts in to receive their net pay, or part of it, in USDC or USDT. Contractors invoice in local currency or US dollars and are paid in USDC or USDT to their wallet, with the local tax and reporting steps. Central bank, foreign exchange and reporting rules differ, so Toku confirms how it works for each country and worker. Talk to us about where your team is.
Toku publishes country guides too, such as whether you can pay in crypto and stablecoins in India, and a list of which countries let you pay entirely in crypto and stablecoins.
Toku handles the stablecoin payout, compliance and reporting (Toku, Stablecoin payroll). It describes itself as a "pioneering token payroll provider": founded in 2020, it started with token payroll in its first year and says it was built stablecoin-first rather than adding crypto payouts on top of fiat rails (Toku, About). Talk to us to learn how it works for your team.
Crypto EOR or something else?
Your own local company
With your own entity you employ people directly and can design stablecoin pay yourself, but you take on registration, local payroll, tax filings and employment law in each country. It's worth it where you'll have many employees. An EOR is faster and cheaper for a few hires per country.
A contractor payment tool
Tools that pay contractors in USDC are simpler and cheaper, but they don't employ anyone. If the person works like an employee, set hours, ongoing role, your tools and direction, treating them as a contractor creates tax and employment risk however you pay them. If they really are contractors, here's how to pay contractors in crypto.
A crypto payout layer on top of payroll
Some services convert part of net pay to crypto after your existing payroll provider has run wages and tax. That works where you already have a local entity and payroll. It doesn't help you hire in a country where you have neither. Compare these tools in our best crypto payroll providers guide.
A PEO (US only)
A professional employer organization co-employs staff with your US company for payroll and benefits. It requires a US entity and doesn't cover hires abroad.
Signs of a compliant crypto EOR
- The employment contract states the salary in local currency.
- Tax and social contributions are withheld and paid in local currency, not in crypto.
- The employee opts in to stablecoin pay and can opt out.
- The provider tells you, country by country, how stablecoin pay is set up and how much of net pay it can cover.
- Payslips show the local-currency amounts, with the conversion recorded.
- Conversion, network and withdrawal costs are written into the agreement.
Which EOR providers offer stablecoin pay
From each provider's own site, checked November 8, 2026. For full reviews and a ranking, see the best crypto EOR providers.
| Provider | Employees paid in stablecoins | EOR countries | Assets | EOR list price |
|---|---|---|---|---|
| TokuPublisher | Fully or partly, configured by country | 100+ | USDC, USDT | $599, stablecoin payroll included |
| Deel | A portion of net salary, US and the Eurozone at launch (25 countries, per Deel) | 130+ | Dollar- or euro-backed stablecoin | $599 + $10 per participating employee |
| Rise | Yes, per Rise; owned EOR entities in the US, UK and Canada | US, UK, Canada (EOR page says 90+) | USDC, USDT, 60+ cryptocurrencies | $399 |
| Borderless AI | A portion of pay, if the employer offers it | 170+ | Not stated | $579 |
| Remote | US employees only, via Coinbase | 90+ | Coinbase converts US-dollar pay | $599 (annual contract) |
| Multiplier | Not supported for EOR employees | 150+ | Contractors only: BTC, ETH, USDC, USDT | From $459 (billed annually) |
Payout tools such as Franklin, Request Finance, Bitwage and BitPay Send pay in crypto but aren't employers of record. Sources: Toku, Deel, Rise, Borderless AI, Remote, Multiplier.
From the publisher
Toku runs a crypto employer of record in 100+ countries. Employees can be paid fully or partly in USDC or USDT, with the rest in local currency, configured by country, and stablecoin payroll is included in every pricing tier.
Frequently asked questions
What is a crypto employer of record?
A crypto employer of record is an EOR service that hires and pays employees for you in countries where you have no legal entity, and lets them receive some or all of their net pay in stablecoins such as USDC or USDT, while the salary, tax and filings stay in local currency.
Which entity signs the employment contract?
With any EOR, a local entity, either the provider's own or a partner's, contracts with the employee and runs local payroll, while you direct the person's work. Paying in stablecoins doesn't change that. Ask each provider which entity will sign the contract in your country.
Can employees be paid 100% in crypto?
Their net pay can be, with providers that allow it: Toku says pay can be fully or partly in stablecoins, while others limit it to a share of net pay, and how much can go out in stablecoins is confirmed for each country. The salary is still set in local currency and tax is withheld and paid in local currency, so the employee receives their net pay in stablecoins, not their gross salary.
Which stablecoins do crypto EORs pay in?
USDC and USDT are the most common. Of the providers in this guide, Toku pays USDC and USDT, Rise says it adds 60+ other cryptocurrencies, and Deel pays a dollar- or euro-backed stablecoin.
Who pays the tax on a stablecoin salary?
The same people who pay it on a normal salary. The EOR's local payroll withholds income tax and social contributions and pays them, along with employer contributions, in local currency. In the US, an employee paid in virtual currency is taxed on its fair market value as wages (IRS Notice 2014-21), and later gains or losses when they sell it are a separate tax matter for them.
Is a crypto EOR more expensive than a normal EOR?
Not necessarily. Toku includes stablecoin payroll in its $599 EOR price, Rise lists $399 with no separate stablecoin fee, and Deel adds $10 per participating employee per month to its $599 EOR. Check conversion, network and withdrawal costs in the agreement.
Can a crypto EOR also handle token grants?
Some can. Toku administers token grants from setup through vesting, withholding, distribution and reporting next to its EOR, and Deel tracks, taxes and reports token grants. The other EORs in this guide don't state a token grant service. Compare the best token grant administration platforms.
Cite this guide
Crypto Employer of Record (Toku). "Crypto employer of record: the complete guide." Updated November 10, 2026. https://cryptoemployerofrecord.com/