Let’s admit it: accounting usually isn’t the first thing that comes to mind when imagining digital transformation, much less something as radical as crypto payroll. Yet, behind every headline about Bitcoin bonuses or employees getting paid in stablecoins is a tangled web of regulatory, technical, and very human drama. Inspired by Megan Nab’s detour from Hurricane Sandy payroll emergencies to co-founding Franklin, this post peels back the curtain on the real (and not-so-glamorous) evolution of payroll in the Web3 era. Spoiler: there are fewer suits, more smart contracts, and quite a few surprises in store.
How Paper Pushing Led to Crypto Payroll: An Origin Story
The story of Crypto Payroll’s rise isn’t just about technology—it’s about people, frustration, and the stubborn realities of legacy systems. Megan Nab’s journey from Wall Street’s back office to the forefront of Blockchain Technology is a vivid example. Her early days were defined by the kind of manual, repetitive work that many still associate with traditional accounting. Think stacks of paperwork, endless spreadsheets, and the daily grind of confirming wires with banks. It was a world where payroll trends meant little more than making sure everyone got paid on time, no matter what obstacles appeared.
But sometimes, those obstacles are more dramatic than a slow printer or a missing signature. When Hurricane Sandy hit New York, the city ground to a halt. Yet, payroll still had to run. As Megan recalls:
"When Hurricane Sandy hit New York, we like, me and another person in the department had to actually go in. Like I walked from my apartment in Queens downtown to run payroll for the company." – Megan Nab
That trek through a disaster zone wasn’t just about dedication; it was a wake-up call. If a company’s entire payroll process could grind to a halt because two people couldn’t make it to the office, something was fundamentally broken. This experience highlighted the fragility and inefficiency of legacy payroll systems—systems that still dominate much of the financial world.
After five years in traditional accounting, Megan’s curiosity led her back to school for an MBA. There, she stumbled upon Ethereum and the broader world of Blockchain Technology. This wasn’t just a technical curiosity—it was an “aha” moment. The transparency and automation promised by blockchain stood in stark contrast to the opaque, manual processes she’d endured. Around the same time, Megan unearthed a massive accounting fraud at her company, further exposing the risks and limitations of paper-based systems.
For many, leaving a stable job on Wall Street might seem reckless. But for Megan, rage-quitting wasn’t just an act of rebellion—it was a necessary escape from systems that no longer made sense. The move from skeptic to innovator wasn’t instant. Traditional skills like compliance and attention to detail proved valuable, but not everything transferred seamlessly. Crypto Payroll required a new mindset, one that embraced flexibility and constant learning.
Early days at ConsenSys, a pioneering blockchain company, were filled with skepticism. “Crypto accounting” sounded almost like an oxymoron. Yet, as research shows, Crypto Payroll Solutions are gaining traction worldwide. They offer advantages legacy systems can’t match: navigating global compliance, reducing currency volatility, and enabling flexible compensation structures. These are more than payroll trends—they’re a fundamental shift in how companies think about paying people.
Megan’s journey—from walking through disaster zones to building disaster-proof payroll tools—captures the grit and technical curiosity at the heart of Franklin’s founding story. Her experience reveals why the future of payroll is being shaped not just by technology, but by those who refuse to accept the status quo.
Hybrid Payroll: Juggling Fiat and Crypto Without Dropping the Ball
Hybrid Payroll systems are quickly becoming the new normal for businesses navigating the intersection of traditional finance and digital assets. The reality is, most companies can’t simply pick one currency and be done with it. Bills, taxes, and rent are still overwhelmingly paid in fiat currencies like USD, while employees and contractors—especially those working remotely or globally—are increasingly interested in receiving part of their compensation in crypto. This creates a unique “odd couple” scenario: companies must balance both cash and crypto, often within the same payroll cycle.
But why not just pay everyone in crypto and call it a day? The answer lies in a mix of practicality and compliance. U.S. labor laws, for example, have deep roots in history—think back to the days of coal miners in Appalachia being paid in company scrip. These tokens could only be used at company stores, trapping workers in a closed economic loop. To prevent similar exploitation, modern regulations require that employees be paid in legal tender or its stable equivalent. That means, even today, you can’t legally pay U.S. employees only in crypto tokens.
This is where Stablecoins come in as the unsung heroes of Hybrid Payroll. Unlike volatile cryptocurrencies such as Bitcoin or Ethereum, stablecoins are pegged to the value of a fiat currency, typically the U.S. dollar. This minimizes currency volatility and ensures that employees receive predictable, reliable compensation. As Megan Nab, a leader in the crypto payroll space, puts it:
“Most companies and most of our customers today still just use stable coins.”
Research shows that stablecoins have become the practical crypto solution for most payrolls, especially for companies looking to maintain global compliance and avoid the headaches of wild price swings. While some organizations do experiment with paying out bonuses in wrapped Bitcoin or ETH—often as a perk or incentive—base salaries almost always revert to stablecoins or fiat. This approach keeps both employees and regulators happy.
Companies like Franklin have been at the forefront of prototyping systems that merge crypto inflows with fiat outflows. Their model supports a variety of currencies, but the demand for stablecoin payouts far outweighs requests for native tokens. The technical challenge is significant: payroll systems must convert, track, and report multiple currencies, all while ensuring compliance with evolving regulations. Still, the payoff is worth it. Hybrid Payroll allows businesses to tap into a global talent pool, streamline cross-border payments, and adapt to the changing landscape of work.
Fun fact: Even with all the innovation in blockchain technology and crypto payroll solutions, U.S. law still requires that employees receive at least the fiat equivalent of their wages. So, while the future of payroll is undoubtedly digital, the present is all about finding the right balance—juggling fiat and crypto without dropping the ball.
Payroll Automation: From Grunt Work to Smart Contracts
Payroll has long been a tedious, manual process. In traditional finance, it meant pushing papers, confirming wires by phone, and relying on a patchwork of intermediaries. But with the rise of Payroll Automation powered by Blockchain Technology, that landscape is rapidly changing. Smart contracts are at the heart of this shift, transforming payroll from a labor-intensive chore into a streamlined, programmable workflow.
Smart Contracts vs. Manual Payroll: No More Paper Pushing
Smart contracts automate the core logic of payroll—calculating, distributing, and recording payments—without human intervention. Instead of HR teams double-checking spreadsheets or finance departments waiting for wire confirmations, payments execute automatically when conditions are met. This reduces errors and frees up valuable time. As research shows, AI Automation in payroll is a major trend, boosting accuracy and minimizing human error.
ERC20 Tokens: The Unsung Heroes of Payroll Automation
Why do most crypto payroll systems, like Franklin, rely on ERC20 tokens? The answer is technical and practical. ERC20 tokens, which include stablecoins and wrapped assets, are designed to work seamlessly with smart contracts on EVM (Ethereum Virtual Machine) chains. As Franklin’s team explains, “it’s the path of least resistance, but also a really beautiful technical solution.” This interoperability means payroll platforms can automate complex payment logic, something that’s nearly impossible in the legacy financial world.
Peer-to-Peer, Self-Custodial Payroll: A New Model
One of the most innovative aspects of crypto payroll is the move toward self-custodial, peer-to-peer transactions. In this model, companies never actually take custody of employee funds. Instead, payroll is executed directly from employer to employee on-chain. As Megan Nab from Franklin puts it:
So one of the innovations at Franklin is actually it's like a self-custodial payroll platform. So we're actually never taking custody of our customers funds. It's literally just a peer-to-peer transaction that happens on chain, which is cool.
This approach reduces risk for both companies and employees, and it’s simply not possible with traditional payroll providers.
Cutting Out the Middlemen: Real-World Impact
Legacy payroll systems are riddled with intermediaries—banks, payday lenders, check cashers—all taking a cut. In fact, payday lenders and check cashers cost Americans $15 billion annually. By leveraging Decentralized Finance and blockchain-based automation, crypto payroll platforms eliminate many of these middlemen. The result? Dramatically lower fees and faster payments for workers.
Automation Isn’t Perfection: Regulatory and Technical Tangents
Of course, automation doesn’t mean perfection. There are still regulatory hurdles and technical quirks to navigate, especially as crypto payroll systems scale globally. Compliance, tax implications, and evolving regulations can introduce friction. But the core advantage remains: automation removes much of the grunt work, allowing payroll teams to focus on higher-value tasks.
As Payroll Automation continues to evolve, the combination of smart contracts, ERC20 tokens, and self-custodial platforms is reshaping how companies think about compensation, compliance, and global payments.
Compliance Chaos: Payroll’s Tangle of Laws, Taxes, and Old-Timey Legal Oddities
When it comes to crypto payroll, regulations aren’t just a box to check—they’re the main character in a drama that stretches from the coal mines of Appalachia to the digital wallets of today’s remote workers. The story of payroll compliance in the United States, for example, is rooted in a history of labor abuses. In the early 20th century, many workers were paid in company scrip—tokens redeemable only at company stores. This system, immortalized in tales like The Grapes of Wrath, trapped employees in cycles of debt and dependency. It’s a reminder that even as technology evolves, the core issues of worker protection and fair compensation remain.
Today, these historical lessons shape modern payroll laws. In the U.S., employees cannot legally be paid solely in crypto tokens; they must receive a fiat-equivalent wage. This requirement is a direct response to past abuses, ensuring workers have access to real, spendable money. But as crypto payroll solutions gain traction globally, the challenge of Global Compliance becomes even more complex. Every country brings its own patchwork of labor laws, tax codes, and regulatory quirks to the table. For crypto payroll providers, navigating this maze isn’t an afterthought—it’s the starting line.
The Tax Implications of crypto payroll are another layer of complexity. While tax codes are technically “open source,” in practice, they’re scattered, inconsistent, and—frustratingly—often unavailable in any centralized, accessible format. Building a payroll tax calculator from scratch can feel like a 21st-century scavenger hunt. Many companies, like Franklin, have found that the only way forward is to develop their own tools for tax calculation and compliance. This isn’t just a technical challenge—it’s a strategic necessity, especially since the U.S. payroll tax information market is dominated by just two companies that control the proprietary databases everyone else must license.
“At least in the United States, all of our social services boil down to a paycheck.” – Megan Nab
This quote underscores why Cryptocurrency Regulation and payroll compliance matter so much. Payroll is the gateway to everything from health insurance to child support. If crypto payroll is to become mainstream, it must meet the same standards of accuracy, transparency, and legal rigor as traditional systems. Research shows that while blockchain and smart contracts can automate much of the payroll process—reducing costs and eliminating intermediaries—these innovations must be carefully managed to align with evolving global regulations.
The rise of stablecoins and ERC20 tokens, especially in smart contract-based payroll platforms, offers a “path of least resistance” for compliance and technical integration. Yet, the monopoly over tax data and the fragmented nature of global regulations mean that crypto payroll providers must remain agile, innovative, and deeply informed about the ever-shifting landscape of compliance and tax law.
The Remote Work Revolution Meets Blockchain Payroll
The global shift to remote work has permanently changed how companies think about hiring, payroll, and employee well-being. When the pandemic hit, remote work infrastructure quickly became the backbone of business continuity. Suddenly, teams weren’t just spread across cities—they were distributed across continents. This shift made remote payroll not just a convenience, but a necessity.
Before this revolution, expanding internationally meant a tangle of local bank accounts, compliance headaches, and endless paperwork. Companies had to set up infrastructure in every country where they wanted to hire, often juggling regulations and banking relationships in seven—or more—jurisdictions. Now, with cloud-based systems and blockchain payroll, the process is dramatically simpler.
Cloud-based payroll systems are increasingly preferred for their remote access, real-time accounting, and enhanced data security. These systems allow teams to manage payroll from anywhere, ensuring compliance and accessibility regardless of where employees are located. Research shows that cloud-based solutions not only streamline operations but also support employee well-being by providing timely, transparent payments and reducing administrative stress.
Blockchain payroll takes this a step further. On-chain processes reduce friction for global teams by enabling cross-border payments with fewer intermediaries. Instead of dealing with a patchwork of local banks, companies can operate on a single blockchain network. This means fewer transaction fees, faster settlement times, and less exposure to currency volatility. As one industry leader put it,
'Running an international business...it is much more in vogue to hire globally now than it ever was before.' - Megan Nab
The not-so-obvious upside? No more opening local bank accounts in every country. Employers can pay talent anywhere in the world, often in stablecoins or cryptocurrencies, without the need for complex banking arrangements. This is especially valuable for startups and crypto-first companies, many of which have been remote from day one. For example, Franklin’s parent company, Serotonin, launched during the pandemic as a fully remote operation and continues to thrive without a physical office.
This new model empowers global hiring in a way that’s more than just a marketing buzzword. By leveraging remote work infrastructure and blockchain payroll, companies can tap into talent pools worldwide, offering flexible compensation and supporting employee well-being through prompt, reliable payments. The tech world has even coined new phrases—think “WFH” (work from home) meets “WFPaidinETH” (work from paid in Ethereum)—to capture how expectations around payroll have shifted.
Ultimately, simplicity wins. Managing payroll through one blockchain network is far less complicated than coordinating with fifteen different banking partners. Cloud-based systems and real-time databases now drive payroll compliance and accessibility, making it easier for distributed teams to focus on what matters: building, innovating, and supporting their people—wherever they are.
Wild Cards: The War on Intermediaries & The Earned Wage Access Rabbit Hole
For decades, financial intermediaries like payday lenders and check cashers have quietly siphoned billions from working Americans. According to recent figures, these middlemen cost Americans a staggering $15 billion per year. That’s not just a statistic—it’s a real drag on employee well-being and financial health. But as crypto payroll solutions enter the mainstream, the landscape is shifting fast.
Dismantling the $15B Payday Lending Industry with Direct Crypto Payroll
The traditional payroll process is riddled with delays and hidden fees, often forcing employees to turn to payday lenders for quick cash. These lenders, acting as financial intermediaries, profit from high fees and interest rates. Crypto payroll platforms, especially those using stablecoins, are designed to cut out these middlemen entirely. By enabling direct, peer-to-peer payments on blockchain networks, employees can receive their earnings instantly—no more waiting for the infamous T+3 (transaction plus three days) settlement. As one podcast host put it:
'Eliminate the T plus three, please.'
This shift doesn’t just save time; it slashes transaction costs and puts more money back in employees’ pockets.
Earned Wage Access: Perk or Trojan Horse?
Some companies have responded to slow payroll cycles by offering “earned wage access” programs. On the surface, these programs sound like a win—employees can claim a portion of their paycheck before payday. But research shows many of these services are little more than modern payday loans in disguise, with complex loan agreements and hidden fees. They may improve cash flow in the short term, but they risk trapping workers in cycles of debt.
Crypto payroll offers a fundamentally different approach. Instead of masking predatory lending practices, it simply pays employees faster. No loans, no intermediaries—just direct, on-chain payments.
Stablecoins: Speed, Transparency, and Fewer Hidden Costs
Stablecoins are often discussed in terms of volatility, but their real power lies in speed and transparency. With stablecoins, businesses can move money across borders or between accounts almost instantly, at a fraction of the cost of traditional methods. This not only benefits employers but also enhances employee well-being by reducing financial stress and uncertainty.
What If You Could Claim Your Paycheck Every Day?
Imagine a world where employees could access their earnings daily, instantly. The pros? Greater financial flexibility, less reliance on credit, and the ability to hang onto cash longer before paying expenses. The cons? It could require new budgeting habits and might tempt some to overspend. Still, the overall impact on employee well-being could be profound, especially for those living paycheck to paycheck.
Unexpected Benefits: More Control, Less Stress
With crypto payroll, employees gain more control over their finances. They can choose when to access their pay, avoid predatory lenders, and benefit from lower transaction costs. As research indicates, reducing the need for financial intermediaries not only streamlines payments but also supports a healthier, more empowered workforce.
The Regulatory Crossroads: Stablecoins, the Genius Act, and What’s Next
Cryptocurrency Regulation is at a pivotal moment, especially as stablecoins move from niche technology to mainstream financial tools. In the United States, crypto has become a rare bipartisan topic, drawing attention from both sides of the political aisle. As Megan Nab put it,
'Crypto is the only kind of bipartisan issue going through Congress right now.'This unique political interest has set the stage for significant changes, particularly with the introduction of the Genius Act.
The Genius Act is widely seen as a net positive for the crypto and stablecoin industry. For years, the market has relied on stablecoin issuers to act in good faith, with industry-driven standards and peer pressure pushing for some level of transparency. However, trust alone is no longer enough. The Genius Act aims to formalize the rules, setting clear standards for disclosures and audit requirements. This shift is not just about compliance—it’s about building confidence for investors, businesses, and regulators alike.
Stablecoins, by design, offer price stability and fast settlement, making them attractive for global payroll solutions. Yet, without robust regulation, concerns about reserve backing and issuer solvency have lingered. The Genius Act addresses these concerns head-on, requiring issuers to provide regular, transparent disclosures and undergo independent audits. This move is expected to legitimize stablecoins further, potentially unlocking new use cases and encouraging broader adoption in payroll, cross-border payments, and beyond.
Another key development is the growing intersection between traditional finance (trad-fi) and blockchain technology. As regulatory frameworks like the Genius Act take shape, banks and other established financial institutions are exploring partnerships with blockchain firms. These collaborations could pave the way for new financial products, improved payment rails, and more efficient compliance processes. For global payroll teams, this means greater access to hybrid payroll systems—where employees can receive salaries in both fiat and cryptocurrencies like stablecoins.
Of course, there are questions about whether increased regulation will stifle innovation or help the industry mature. Some worry that too many constraints could dampen the entrepreneurial spirit that has defined crypto from the start. Others argue that clear rules are necessary for mainstream adoption and long-term growth. As research shows, evolving Cryptocurrency Regulation is already impacting how crypto payroll operates, with compliance, transparency, and security becoming top priorities for organizations worldwide.
For global payroll teams, the evolving regulatory landscape is something to watch closely. New laws may affect how payroll is processed, reported, and taxed—especially as stablecoins become more integrated into compensation strategies. Staying ahead of these changes is crucial for maintaining global compliance and leveraging the benefits of blockchain-based payroll solutions.
In conclusion, the Genius Act and similar regulatory efforts mark a turning point for stablecoins and the broader crypto payroll ecosystem. By setting clear standards and encouraging collaboration between banks and blockchain innovators, these regulations could help crypto finally grow up—without losing the spirit that made it revolutionary in the first place.
TL;DR: Crypto payroll is more than a buzzword—it’s a pragmatic evolution born from clunky legacy systems, compliance headaches, and the global shift to remote work. With blockchain, stablecoins, and AI automation transforming how and why people get paid, both employees and employers need to rethink what ‘payday’ really means.
