Crypto-based salary payments experienced a dramatic surge in 2024, tripling in volume compared to the prior year, according to a report by Pantera Capital. The report, which surveyed 1,600 participants from 77 countries, found that 9.6% of professionals received compensation in stablecoins—digital assets pegged to fiat currencies such as the U.S. dollar. Among these, USDC emerged as the dominant stablecoin in payroll transactions, capturing 63% of the market, followed by USDT with 28.6%. Together, the two stablecoins accounted for over 90% of crypto salaries, highlighting their growing acceptance as a reliable form of digital compensation [1].

The rise of USDC in payroll is attributed to its perceived stability, institutional adoption, and regulatory progress. The U.S. GENIUS Act, passed in July 2024, provided a legal framework for stablecoin issuers, reinforcing the legitimacy of stablecoins within the financial system. Circle, the issuer of USDC, has further positioned itself as a key player in the sector by applying for a federal trust bank charter and partnering with ICE, parent company of the New York Stock Exchange, to explore the use of USDC in derivatives markets [1].

Payroll platforms like Bitwage have also facilitated the shift by enabling global workers to receive stablecoin-based compensation. This trend has reshaped payroll practices, particularly in the fintech sector, where major companies are adopting stablecoins to improve compliance, liquidity, and efficiency. The broader adoption is not limited to the crypto industry but is part of a wider financial transformation. In 2024, stablecoin transfer volume reached $27.6 trillion, surpassing the combined transaction volumes of major credit card networks like Visa [2].

Experts suggest that the shift from volatile cryptocurrencies like Bitcoin and Ethereum to stablecoins like USDC is likely to continue. The stability and predictability of USDC make it an attractive option for payroll, especially in an environment where market fluctuations can impact employee compensation. According to Dan Morehead, CEO of Pantera Capital, “USDC and USDT collectively account for over 90% of crypto salaries, cementing their status as the go-to choices for payroll stability and liquidity.” [1]

The growth in crypto salaries is also reshaping compensation structures in the blockchain industry. A significant 88% of token-based incentives now follow a four-year vesting schedule, up from 64% in the prior year, signaling a move toward long-term alignment between employers and employees. Additionally, practical skills appear to carry more weight in the industry than advanced academic credentials. On average, professionals with bachelor’s degrees earned higher compensation than those with master’s or doctoral degrees [1].

Mainstream financial institutions are increasingly recognizing the potential of stablecoins. JPMorgan Chase’s CEO, Jamie Dimon, has publicly endorsed their role in enhancing financial efficiency, indicating a broader acceptance of stablecoins within traditional finance [3]. This support could further accelerate the adoption of stablecoins for payroll and other financial functions.

As the use of stablecoins in payroll continues to expand, so too does the attention from regulators. In 2024, the U.S. president directed regulators to investigate potential discrimination against crypto firms, highlighting the growing political and regulatory significance of the sector [4]. While regulatory clarity remains a key challenge, the continued institutional adoption and acceptance from younger professionals—75% of whom in a survey preferred stablecoin salaries—suggest that the future of payroll is becoming increasingly digital [1][4].

Source: [1] CoinMarketCap. Title: Crypto salaries triple in 2024 as stablecoins dominate payrolls: Report. URL: https://coinmarketcap.com/community/articles/6893d0374efbf54e608dc793/

[2] Daily. Title: Global race for digital money dominance: Who will set rules for this new era. URL: https://www.dailysabah.com/opinion/op-ed/global-race-for-digital-money-dominance-who-will-set-rules-for-this-new-era

[3] AOL.com. Title: Jamie Dimon just gave a thumbs up to stablecoins—but … URL: https://www.aol.com/finance/jamie-dimon-just-gave-thumbs-172158916.html

[4] CoinCentral. Title: Trump Takes Aim at Banks That Dumped Crypto Companies. URL: https://coincentral.com/trump-takes-aim-at-banks-that-dumped-crypto-companies/