Stablecoin payroll firm Toku taps Paxos Labs’ Amplify to offer yield on paychecks

Stablecoin payments solution Toku has integrated Paxos Labs’ recently unveiled Amplify DeFi platform, enabling employees to earn yield on their pay “the moment it lands,” according to an announcement on Tuesday. 

The move comes as payroll solutions look to onboard more stablecoin users and use cases. Toku offers an API that payroll companies like ADP, UKG, and Workday can plug into to offer stablecoin optionality, and now processes over $1 billion in annual token payroll volume across more than 100 countries, per the announcement.

While there’s competition among stablecoin payroll providers, like RebelFi, Franklin, and Rise Earn, as well as deals between crypto onboarding tools like Moonpay and traditional payroll firm Deel, built-in yield isn’t standard or always self-custodial. 

“Stablecoin payroll already gives millions of workers access to dollar-denominated savings they couldn’t otherwise reach. What it hasn’t given them, until now, is yield on those savings,” Bhau Kotecha, co-founder of Paxos Labs, said. 

For its part, Toku wallets are powered by Stripe’s non-custodial wallet solution Privy, enabling employees to retain control of their funds. “No one at Paxos Labs, Toku, or any third party can access, freeze, or move stablecoins without the employee’s direct authorization,” the announcement reads.

Employees paid by Toku in USDC, USDT, and USDG can now opt into earning yield on some or all of their paychecks without passing funds to a third-party service. They can also withdraw their principal and any accrued interest without a lockup period or withdrawal queue. 

Paxos Labs is a relatively new onchain development studio attached to the well-established and regulated Paxos blockchain infrastructure platform. The unit launched late last year and recently unveiled Amplify as its core enterprise offering. Amplify features Earn, Borrow, and Mint modules that allow clients to offer yield on digital assets, enable crypto-backed lending, and launch branded stablecoins.

Kotecha previously told The Block that Paxos Labs operates using a revenue-sharing business model, where it earns a portion of the yield generated by clients that integrate Amplify. The unit also recently announced it has raised $12 million in a strategic round led by Blockchain Capital, with participation from Robot Ventures, Arthur Hayes’ family office Maelstrom, and Uniswap.

“Paxos Labs’ mandate is basically to increase Paxos’ footprint onchain,” Paxos Labs Head of DeFi Dougie Deluca told The Block, noting he’s working to “move institutions, fintechs, enterprises onchain.”

While Paxos Labs does not do yield curation directly for clients, it works with other curators and clients to put their assets to work based on their desired risk and yield profiles, Deluca said. 

© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.