Toku, PDAX Roll Out Stablecoin Payroll for Filipino Workers in Web3 First

Under the alliance, companies utilizing Toku's token-native payroll infrastructure can issue payment in stablecoins like USDC, USDG, or RLUSD. Payments will be credited to PDAX wallets or external addresses, which then convert the stablecoin into Philippine Pesos (PHP) and disburse funds to any local bank account or e-wallet, such as GC Cash or GrabPay, via PH inter-bank rails (Instapay / PesoNet).

The logic, according to Toku CEO Ken O’Friel, is that many crypto-native companies already hold stablecoins on their balance sheets; now they can use those assets to pay contributors in the Philippines, making “stablecoin payroll local and seamless.” For his part, PDAX CEO Nichel Gaba said the move will allow for “better, faster financial access” for Filipino professionals working with global companies.

This partnership is timely, considering the evolving digital-asset regulatory environment of the Philippines and its large remittance economy. In 2024, the country received $38.34 billion in remittances, showing potential for innovation around payments.

From an operational point of view, the integrated solution has quite a few advantages: real time on-chain settlement means that Toku routes funds directly to PDAX wallets or to external addresses, enabling immediate settlement and complete transparency; at the same time, local cash out via PDAX converts stablecoins into PHP and onward transfers funds to any bank or mobile wallet in the country. Employers can send either stablecoins for conversion or deposit in PHP and convert to stablecoins for onward routing.

For employers, this presents three clear benefits: lower cross-border wire fees or the elimination of them-along with faster settlement and access to crypto native talent in the Philippines. For the employee or contractor, it provides flexibility: to get paid in stablecoins, with a path to local currency and wallet/bank access.

This model also sits at the juncture between payroll and token-economy and regulatory compliance and raises a number of practical and regulatory questions. While the Philippines has expressly allowed cryptocurrencies as virtual assets, though not as legal tender, under the oversight of the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission of the Philippines, services like Virtual Asset Service Providers must be registered and comply with standard customer-verification and compliance checks, along with other operational risk frameworks.

One measure of this still-laying regulatory foundation: the BSP has imposed a moratorium on new VASP licenses while studying systemic risk, and the SEC unveiled rules on Crypto Asset Service Providers, CASP, requiring domestic capital thresholds, minimum of PHP 100 million for example, and local register-based operations. In the stablecoin space in particular, the country has experimented with peso backed token projects including PHPC, a peso pegged stablecoin pilot which just exited its sandbox mid 2025.

That regulatory backdrop gives the Toku–PDAX model an interesting test case. On one hand, it leverages a regulated domestic exchange, PDAX, to convert stablecoins into PHP and comply with local bank rails. On the other hand, it collects enterprise payments in global stablecoins and relies on local conversion, raising questions around employer tax treatment, employee local-tax withholding, currency translation, reserve-backing disclosures of the stablecoins used, and the cross-border compliance considerations that come with wallet flows moving between jurisdictions.

Considering the following elements will help make an informed risk-management decision: Which stablecoin the company and employees choose should not only be transparent regarding reserve backing but also about the credibility of the issuer. Local employees receiving crypto-based compensation need to have clarity on the tax treatment under BIR rules. The local exchange/cash-out partner must be licensed or supervised to reduce counterparty risk and regulatory exposure.

The economics are attractive for Filipino workers participating in this system. Traditional cross border payroll for global companies paying contractors-involves FX conversion, inbound wire-fees, settlement delays, and dependence on local banking hours. In contrast, stablecoin-enabled payroll frameworks reduce latency, simplify settlement, and may lower fees-particularly pertinent when paying freelancers or distributed talent from abroad. With a strong mobile-wallet penetration in the Philippines, such as GCash, GrabPay, among others, and vibrant freelancer ecosystems, the uptake potential is great. As a matter of fact, analysts say the Philippines probably ranks among the most crypto active emerging markets thanks to digital payment adoption and remittance-heavy flows.

Still, with the benefits come challenges. Volatility remains a risk-not of the stablecoin itself, which is pegged, but of conversion risk, regulatory shifts and counterparty execution. Reporting and documentation for local compliance tax, payroll, FX translation may require adaptation of standard payroll systems. Companies will need to integrate crypto payroll flows into their global payroll practices, ensure employee onboarding covers crypto education, and local workers understand how conversion, custody, and access work.

The Toku-PDAX partnership could mean a next step in token native infrastructure moving deeper into mainstream enterprise operations. Already, payroll is emerging as a use case beyond treasury management or token incentives; it's becoming a real execution layer for firms paying talent anywhere in the world. As companies increasingly hold stablecoins on their balance-sheets as treasury assets, using those same assets for wage payments represents a logical extension of corporate crypto strategy.

For the Philippines, it is precisely in line with its ambition to enhance its digital payment ecosystem, remittance flows, and financial inclusion agenda. By enabling a wider range of payment instruments for remote contractors and gig economy workers, digital assets may serve as one of the rails in the emerging payment stack. But regulators in Manila will be keeping a close eye on how those flows ultimately interact with domestic banking infrastructure, FX settlement, consumer protection, and tax regimes.

The Toku-PDAX collaboration affords global employers and Filipino professionals a functional, regulated pathway into stablecoin-based payroll. It addresses frictions in cross border payments by leveraging onshore on ramp/off ramp infrastructure via a regulated exchange.