US-based payroll and human resources provider Gusto has begun piloting stablecoin-based payments for international contractors through a partnership with crypto infrastructure firm Zerohash, aiming to shorten cross-border payroll settlement times from days to minutes.
“As the workforce becomes increasingly global and digital, traditional payment systems can no longer meet the speed and accessibility modern businesses require,” says Edward Woodford, Founder and CEO, Zerohash, in a statement announcing the beta rollout. The company frames the move as a response to structural limits in legacy payment rails.
The pilot reflects growing pressure on payroll and HR platforms to adapt to a labor market that is both more international and more fragmented. According to industry data cited by Gusto, roughly one-third of US small businesses now outsource at least one role, and the company’s own research shows that 11% employed international contractors in 2025. That shift has exposed weaknesses in traditional cross-border payroll systems, which often rely on correspondent banking networks that take three to seven days to settle payments and generate administrative complexity for employers and cash-flow uncertainty for workers.
Stablecoins — digital tokens typically pegged to fiat currencies such as the US dollar — are emerging as an alternative settlement layer within fintech and payments. By operating on blockchain networks, they allow near real-time transfers and onchain traceability, while still referencing familiar currencies. Tether’s USDT and Circle’s USDC dominate the market, accounting for the majority of stablecoin liquidity and transaction volume. Gusto’s integration with Zerohash uses regulated stablecoin infrastructure to enable eligible contractors outside the United States to receive US dollar-denominated payments through either custodial or self-custodied digital wallets.
The initiative also comes amid intensified competition among stablecoin issuers and service providers following regulatory developments such as the US GENIUS Act, which opened clearer pathways for stablecoins to reach broader commercial use. That competition has driven aggressive customer incentives and yield offerings across exchanges and platforms, as issuers seek to establish long-term positions in payments and financial infrastructure.
While the Gusto-Zerohash pilot focuses on settlement speed and operational efficiency rather than yield, it enters a market shaped by short-term incentives and longer-term questions about sustainability. Ron Tarter, CEO, stablecoin issuer MNEE, warns that the wave of elevated returns offered through exchanges and partner programs should not be viewed as a permanent baseline. In his assessment, issuers are sacrificing margins to gain market share, a strategy similar to early fintech challengers that relied on free services and promotions before moving toward more sustainable models once scale was achieved.
Under existing regulations, stablecoin issuers are generally restricted from paying interest directly to users, but partnerships with exchanges have enabled indirect yield offerings. Some platforms advertise returns ranging from about 4% to more than 8%, levels that exceed those available in US Treasury markets. Tarter argues that such returns are possible only through more complex and risk-bearing financial structures, and are likely to compress once market leaders consolidate their positions. For payroll providers like Gusto, however, the appeal of stablecoins lies less in yield and more in faster settlement, transparency, and programmability.
The move toward onchain payroll also mirrors broader trends in HR technology, particularly in emerging markets where compliance complexity and operational scale create demand for integrated digital systems. In Mexico, and much of Latin America, payroll is shaped by union agreements, industry-specific tax regimes, and frequent regulatory changes, making errors costly both financially and reputationally. Worky, a Mexico-based HR and payroll platform, has built its product around these constraints, targeting midmarket and operationally intensive companies that often manage large frontline workforces.
Worky’s leadership points to structural gaps similar to those Gusto is addressing globally. After the 2021 outsourcing reform in Mexico, many companies were forced to internalize payroll operations, increasing labor costs by as much as 30% and assuming direct compliance responsibility. Worky responded by offering cloud-based payroll systems, real-time attendance tracking, and a zero-fine guarantee tied to social security audits, positioning compliance as a core value proposition rather than an add-on.
Labor reforms, including proposals to reduce the standard workweek to 40 hours, are accelerating digital adoption by increasing the complexity of workforce planning and overtime management. Platforms that integrate HR, attendance, compensation, and payroll data allow companies to scale without expanding HR headcount and to reduce early turnover, which remains high in operational roles across the region. Worky reports that companies using integrated systems can cut 90-day turnover by 30% and extend average employee tenure.
These regional dynamics underscore why global payroll providers are experimenting with new infrastructure. As workforces span borders and employment models diversify, payroll is increasingly viewed as a strategic function tied to liquidity management, compliance, and retention rather than a back-office process. Stablecoins offer one potential layer to address the payment side of that equation, particularly for contractors and contingent workers who are often underserved by traditional banking systems.
For Gusto, which serves more than 400,000 small business employers, the Zerohash pilot represents an incremental but notable expansion of its global payroll capabilities. The company has positioned the beta as a response to customer demand rather than a wholesale shift away from existing rails. Whether stablecoins become a standard option in payroll will depend on regulatory clarity, user adoption, and the ability of providers to integrate digital payments into broader HR and compliance workflows.
As competition among stablecoin issuers intensifies and HR platforms continue to digitize, the intersection of payroll, crypto infrastructure, and labor regulation is likely to draw increased attention from businesses seeking faster, more predictable ways to pay a global workforce.
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