Paxos Labs Adds Yield to Toku’s $1B Stablecoin Payroll

Paxos Labs has embedded its Amplify yield engine into Toku’s global stablecoin payroll platform, enabling employees in more than 100 countries to earn yield on USDC, USDT and USDG the moment their pay arrives. The integration covers Toku’s payroll flows, which process more than $1 billion in annual token payroll volume.

The deal connects Paxos Labs Amplify to Toku’s employer-of-record and payroll services, with Paxos providing the yield infrastructure so payroll providers do not need to build or operate it. Toku is the first payroll platform to go live on Amplify. The yield feature runs inside the same self-custodial wallet employees already use through Toku, avoiding extra accounts, transfers or lockup periods.

Employees who opt in begin earning yield as soon as a paycheck lands in their Toku wallet. The feature supports USDC, USDT and USDG. Workers can withdraw their principal and any earned yield at any time. Participation is optional and does not change how salaries are calculated or paid.

Toku wallets are self-custodial and powered by Privy. Employees retain their private keys, and Paxos, Toku or any third party cannot move stablecoins without the employee’s authorization.

The integration is designed to work with existing employer payroll systems. Companies using ADP, Workday, UKG or Gusto can enable the feature through Toku’s API without adding vendors or changing payroll workflows. Paxos and Toku contrasted the setup with platforms that add yield by taking custody of paychecks and moving funds into third-party wallets subject to platform withdrawal rules.

Paxos Labs and Toku said they plan to expand self-custodial yield access into markets where custodial products face regulatory barriers, allowing workers in those jurisdictions to earn on dollar-denominated holdings without surrendering control.

Stablecoin payroll has expanded rapidly. In 2025 more than $33 trillion in stablecoin volume was processed, and stablecoins account for more than 90% of digital asset compensation payouts. For employees in countries where local currencies lose purchasing power, receiving pay in dollar-pegged stablecoins has become a way to preserve savings.

Bhau Kotecha, co-founder of Paxos Labs, said, “Amplify closes that gap for Toku’s entire workforce. Every paycheck is now a productive paycheck, and it happens without asking anyone to give up control of their own funds.” Ken O’Friel, Toku’s CEO, noted that customers had asked for both the speed of stablecoin payroll and the ability to put paychecks to work and that the partnership delivers those features inside the same self-custodial wallet.

Paxos Labs and Toku described the integration as a way to make payroll balances productive immediately while preserving self-custody and portability for workers paid in digital dollars.