In a surprising twist on compensation trends, a recent report from Pantera reveals that the number of salaries paid in cryptocurrency soared to new heights in 2024, tripling from previous years. This surge marks a significant shift in how companies are choosing to remunerate their employees, especially in the face of an increasingly digital economy. The report highlights Circle’s USDC as the frontrunner, capturing a striking 63% of these crypto-based salaries, outpacing even the ubiquitous Tether (USDt).
The Rise of Crypto Compensation
The growing adoption of cryptocurrency for payroll purposes reflects broader trends within the digital asset landscape. USDC’s dominance in this arena is particularly noteworthy given USDt’s stronghold in trading volumes. According to Pantera’s data, USDC’s appeal may be attributable to its perceived stability and regulatory compliance, which offer reassurance to both employers and employees navigating the volatile crypto markets. This trend aligns with broader market movements, such as KakaoBank’s plans to actively participate in the stablecoin market, highlighting the increasing institutional interest in stablecoins.
“Companies are increasingly recognizing the benefits of paying salaries in stablecoins, like USDC, which provide a hedge against inflation while ensuring liquidity,” explains Jaime Peters, a cryptocurrency analyst based in New York. “The fact that USDC is backed by U.S. dollars and audited regularly adds an extra layer of trust that’s hard to ignore,” she adds.
Why USDC Is Gaining Ground
Circle’s USDC is not just leading the pack in payroll, but it’s also making waves in the broader fintech landscape. The stablecoin’s structure allows for quick, cost-effective transactions, making it an attractive option for international companies dealing with cross-border payments. This efficiency is crucial in a globalized workforce where talent can be sourced from anywhere in the world. The recent advancements in blockchain technology, such as Alchemy’s latest upgrade speeding up stablecoin transactions, further enhance the appeal of using stablecoins for such purposes.
Yet, while USDC is making significant strides, it’s important to note that USDt still holds a commanding presence in trading circles. Its liquidity and widespread acceptance on major exchanges make it a staple in traders’ toolkits. “USDt’s dominance in trading doesn’t necessarily translate to payroll,” clarifies Peters. “The considerations for trading are different—traders want liquidity and volume, while employers and employees want stability and predictability.”
Historical Context and Future Questions
This pivot towards crypto salaries is not entirely out of the blue. Over the past few years, the integration of blockchain technology into financial systems has accelerated, with more businesses exploring decentralized finance (DeFi) solutions for everyday applications. The events of 2024, where many traditional currencies faced inflationary pressures, have only intensified this trend.
However, questions remain about the sustainability of this growth. As governments worldwide grapple with regulating digital currencies, the future landscape of crypto salaries is anything but certain. Regulatory clarity, or the lack thereof, could either propel or hinder further adoption.
Looking Ahead
As we move further into 2025, the implications of this shift will continue to unfold. Will other stablecoins emerge to challenge USDC’s position in the salary space? How will regulatory developments shape the future of crypto compensation? These are just a few of the burning questions that industry stakeholders are watching closely.
For now, one thing is clear: the use of cryptocurrency for salaries is more than just a passing trend. It’s a reflection of a broader transformation in how we perceive money and value in the digital age. As companies and individuals alike adapt to this new reality, the ripple effects on the global economy could be profound. Keep an eye on this space—it’s bound to get interesting.
Source
This article is based on: Number of salaries paid in crypto tripled in 2024: Report
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
