Payment stablecoins: A new frontier for total rewards and global mobility leaders

What are stablecoins?

Prior to the introduction of the Act, stablecoins referred to a type of digital asset, or digital representation of value, designed to maintain a stable price, typically by being pegged to a government-issued fiat currency, such as the US dollar or government-issued debt instruments, such as US treasuries. Unlike traditional cryptocurrencies (such as bitcoin or ether), which are not backed by an asset reserve and may fluctuate significantly in value, stablecoins are intended to offer the speed and flexibility of digital assets (via peer-to-peer consensus mechanisms rather than a central authority or intermediary) without the valuation volatility.

How does the Act address stablecoin use and protection?

The Act seeks to address the historical challenges of stablecoins, provide certainty, and protect consumers. One key measure that the Act introduced is the term “payment stablecoin,” which is defined as a stablecoin issued by a regulated entity that is specifically intended for use in transaction payments or settlements, rather than for investment or speculative purposes.⁶ Importantly, the Act excludes algorithmic stablecoins and mandates strict requirements on transparency, reserve management, and redemption at par value to ensure consumer protection and market stability, presumably in an effort to safeguard against repeating past failures.⁷

The requirement for payment stablecoin issuers to maintain identifiable reserves (i.e., backing payment stablecoins on at least a one-to-one basis through assets such as US currency or US Treasury bills, notes, or bonds, rather than algorithmically) provides the stability of a fiat currency while offering the speed and flexibility of digital currencies, potentially making them a useful tool to facilitate a range of payment possibilities.

Payment stablecoins as a form of compensation

For global mobility programs and multinational organizations with a globally mobile workforce, payment stablecoins represent a potential opportunity to elevate talent reward strategies. Key benefits could include:

Better employee experiences

• Peer-to-peer payment facilitation and efficiency: Payment stablecoins offer an efficient delivery of compensation to globally mobile employees, providing cost savings and reducing the need for multiple bank accounts. 
• Protection against currency instability: Payment stablecoins offer consistency, particularly in jurisdictions with unpredictable currencies or regulatory environments, due to being backed by reserves such as the US dollar (or the relevant currency the payment stablecoin is pegged to).
• Growing adoption: As mainstream financial institutions, payment processors, and others adopt payment stablecoins, there will likely be increased ability to use them to purchase everyday goods and services.
• Flexibility for frequent travelers: Employees who travel often can receive compensation instantly—in a currency that holds its value—and exchange it on the local market as needed.

Financial inclusion

• Instant access to funds: Paying employees (and other service providers) in payment stablecoins eliminates the delays associated with international banking, providing quicker (often immediate) access to compensation for workers who operate remotely, are nomadic, or have relocated.
• On-demand compensation: Payment stablecoins allow payment to occur once services are completed, rather than following the traditional payroll cycle.
• Accessibility: Payment stablecoins can be sent and received with a smartphone, expanding access for employees without bank accounts and broadening access for global talent.
• Lower transaction fees: Both employers and employees benefit from reduced transaction fees.

Differentiated benefits for your talent

• Flexibility: Allowing employees to elect base pay in payment stablecoins could help companies differentiate their total rewards offering, especially as digital assets are adopted and become accepted, potentially providing a competitive advantage to attract, motivate, and retain talent.
• Diversified compensation: Employees are becoming increasingly attracted to diversified compensation packages, and token administration providers are responding with the development of payment stablecoin functionality within their platforms that integrates with the leading payroll providers.

Compliance

• Transparency: Blockchain-based payments enable transparent and immutable records.
• Auditability: Immutable records make it easier for companies to track compensation and comply with global regulations.

Practical considerations and risks for compensation paid in payment stablecoins

While payment stablecoins offer significant benefits, organizations should carefully evaluate their adoption through several perspectives outlined briefly below.

• Regulatory and legal compliance: Jurisdictional rules vary widely by country. Organizations must verify payment to employees in payment stablecoins is legal in jurisdictions where the services are being provided and/or where the employee is a tax resident. Additionally, organizations will need to consider the country-specific tax (from both an employee and employer perspective), legal, and licensing obligations.
• Employee acceptance and education: Both employers and employees may lack an understanding of payment stablecoins and their associated complexities. Education will be essential for employers and employees prior to introducing payment stablecoins into the compensation process.
• Operational readiness: Payment in payment stablecoins may need to be integrated into existing delivery systems for payroll and recordkeeping that may be reliant on compensation data (e.g., 401(k) and pension administration, recordkeeping systems, and health care systems). Another consideration is that, with a few exceptions, taxing authorities do not currently accept digital assets as payment for employment tax remittances, regardless of the form the compensation takes.

Conclusion

Payment stablecoins have the potential to transform how money moves, and value changes hands on a global scale, offering stability, speed, and accessibility. For global mobility programs, offering payment stablecoins as a form of compensation provides a view of a future state of streamlined payments, reduced costs, and empowered employees as the environment becomes democratized—no matter where they are in the world. As adoption grows, forward-thinking organizations have an opportunity to lead the way in modern, borderless compensation to attract and retain the growing community of talent that is routinely engaging with digital assets.

¹ Board of Governors of the Federal Reserve System (FRB), “A global stablecoin glut: Implications for monetary policy,” speech given by FRB Governor Stephen I. Miran, BCVC Summit 2025, New York City, November 7, 2025. 
² Ibid. 
³ Nick Zurick, Blockchain Compensation Survey 2024, Pantera Capital, April 5, 2025.
⁴ Deloitte, “North American CFOs anticipate significant uptick in corporate cryptocurrency adoption by 2027,” press release, July 31, 2025.
⁵ Congress.gov, S. 394 – GENIUS Act of 2025, 119th Cong. 
⁶ Congress.gov, “Stablecoin Legislation: An Overview of S. 1582, GENIUS Act of 2025,” July 18, 2025.
⁷ Jiageng Liu and Antoinette Schoar, “Anatomy of a run: The Terra Luna crash,” Harvard Law School Forum on Corporate Governance, May 22, 2023.