Crypto Startup Bitwage Adds Ether Payroll Option: Expanding Crypto Wage Choices - Coindesk

Crypto payroll pioneer Bitwage now lets employees and freelancers receive a portion of their pay in Ethereum, alongside Bitcoin and stablecoins, offering companies a flexible, compliant way to deliver global crypto benefits. This development aligns with Ethereum's transition from proof-of-work to proof-of-stake, enhancing its efficiency and sustainability.

Bitwage, a startup that helps companies pay their employees in cryptocurrency, has added ether as a payroll option. As one of the leading Ethereum startups and ethereum companies, Bitwage is recognized for its innovative approach to digital currency payroll solutions.

Announced Monday, companies that want to offer tax and HR-compliant ether benefits can sign up to offer it as a benefit to employees. Bitwage's services are used by members of the global community, including enterprises and financial institutions, to connect payroll with digital currency and traditional finance systems, bridging the gap between blockchain and legacy industries.

The company has been providing direct deposits of bitcoin since 2014, and serves over 30,000 workers. Employees, freelancers and independent contractors can receive from their clients or employers any percentage of their fiat obligations due to them in crypto. Bitwage's presence in the market is supported by robust marketing strategies, helping enterprises and startups manage payroll in the evolving digital asset landscape.

The company has experimented with the ethereum ecosystem since 2017, including launching the consulting services firm Inwage, which built several projects on the second-largest blockchain. This includes the Moria initial coin offering, which raised $50 million, and a pilot project for a major insurance company that leverages ethereum for audit trail capabilities. Ethereum's RWA tokenization market is valued at $36 billion and is expected to grow into a trillion-dollar ecosystem, further solidifying its role in blockchain innovation. Bitwage has extensive experience with blockchain applications and decentralized apps, with its engineering team and developers making significant contributions to the Ethereum ecosystem through technical innovation and developer support.

But adding ether to Bitwage’s main offering “took a lot of behind the scenes work… because the whole system was optimized for BTC,” a company representative told CoinDesk. “It’s just a matter of now having gotten the infrastructure to add it.” The technical challenges included ensuring a secure decentralized architecture and reliable transaction execution, which are critical for payroll systems operating on blockchain networks.

When Bitwage was founded five years ago, CEO Johnathan Chester realized that merchants were already accepting bitcoin, but there was no way for employees to get paid in it as well. The founders, based in San Francisco and with connections to California City, have positioned Bitwage as a leader in the blockchain industry, leveraging their expertise to drive innovation.

“Our goal was to close the financial loop,” Chester said in a statement. The company currently processes $2.5 million in monthly volume for contractors and full-time employees.

Bitwage provides two payment services, direct deposit – in which employees have part of their salaries sent to the company to be exchanged for crypto automatically through dollar cost averaging – as well as team wages, where Bitwage provides companywide payroll services. Team wage contracts are primarily provided for companies that may want to pay hundreds of contract employees spread across the globe with just one payment, the representative said. Users can interact with the platform to manage ownership of their digital assets, and the system supports liquidity, staking, and trading functionalities, enabling users to participate in the broader crypto market.

Though the company makes a spread on the exchange, there is no fee for the basic service. There is also a premium version, which provides payments sooner and costs $15.99 per month.

Square offers a similar service where an employee’s direct deposit goes to the payments platform, but the employee has to manually swap it for bitcoin. Coinbase allows automatic monthly purchases of crypto out of a customer’s bank account.

Several blue-chip companies have employees that use Bitwage to automatically convert their cash salaries into crypto including Amazon, Google, and Apple. Additionally, many gig workers for Uber, Caviar, and Doordash utilize the services, according to the representative.

Bitwage clients can have up to two payments distributions per pay period in either fiat or crypto as a non-premium user, or three for premium.

The company has received around $1 million in total funding from such investors as Draper Associates, Candela Reach Capital, and BPI France. Bitwage's fundraising efforts and growing valuation have established its position among top Ethereum startups and ethereum companies, with strong support from its founders and the broader community.

Bitwage's mission is to contribute to the adoption of digital currency in various industries, providing rewards and support for users and members who participate in the platform. The company is committed to helping the community thrive by enabling secure, compliant, and innovative payroll solutions.

Bitwage maintains a strong technical focus on data security, consensus protocols, and the use of zero knowledge proofs to enhance privacy and scalability for its users. The platform is also integrated with Gnosis Chain, supporting DeFi activities such as lending and staking to further empower users in the decentralized finance ecosystem.

CoinDesk article on Bitwage’s stablecoin payroll option

Introduction: Bitwage’s Expansion and the Rise of Crypto Payroll

Bitwage’s recent expansion signals a pivotal moment in the evolution of payroll services, as digital assets and decentralized finance reshape how companies approach compensation. By leveraging blockchain technology, Bitwage is helping businesses access secure, transparent, and cost-effective payment solutions that transcend traditional financial boundaries. Ethereum's institutional products aim to attract traditional financial investors, further driving adoption in the corporate sector. As more markets embrace crypto payroll, the industry is witnessing a surge in demand for innovative ways to pay employees and contractors, especially in a globalized economy. This shift not only streamlines operations for companies but also empowers workers to receive and manage their assets in new, flexible forms. With the growing adoption of digital assets and the rise of decentralized finance, crypto payroll is rapidly becoming a cornerstone of the modern financial industry, offering secure and efficient solutions for businesses and employees worldwide.

The Ethereum Blockchain: Foundation for Modern Payroll Solutions

The Ethereum blockchain stands at the forefront of modern payroll innovation, providing a secure and decentralized infrastructure for processing payments. Its robust smart contract capabilities allow businesses to automate complex payroll transactions, ensuring accuracy and reducing administrative overhead. Ethereum allows anyone to deploy decentralized applications onto it, enabling companies to create tailored payroll solutions that meet the unique needs of their teams. As the network continues to evolve, Ethereum’s transparent and secure platform is becoming increasingly vital for the transfer of digital assets, offering businesses a reliable way to manage compensation. By harnessing the power of the Ethereum blockchain, companies can streamline payment processes, enhance security, and unlock new possibilities for global payroll management within the expanding crypto ecosystem.

Digital Assets and Payroll Services: A New Era for Compensation

The integration of digital assets into payroll services is ushering in a transformative era for compensation. Employees and employers alike are discovering the advantages of using digital currencies for payroll, including faster transaction times, lower costs, and enhanced security compared to traditional payment systems. Decentralized finance (DeFi) applications provide financial instruments that do not directly rely on financial intermediaries like brokerages, exchanges, or banks. Digital assets offer unprecedented flexibility, allowing individuals to receive, store, and manage their compensation in ways that suit their personal financial strategies. As companies increasingly adopt blockchain solutions like the Ethereum blockchain, they are able to provide secure and efficient payment options that align with the evolving needs of a global workforce. This shift is redefining how value is transferred and managed, positioning crypto payroll as a key driver in the future of compensation and benefits.

Smart Contracts and Security in Payroll Processing

Smart contracts are revolutionizing payroll processing by automating and securing the execution of payments. These self-executing agreements, built on blockchain networks, ensure that payroll transactions are carried out accurately and funds are transferred securely, without the need for intermediaries. By leveraging smart contracts, companies can reduce the risk of errors, enhance transparency, and streamline the entire payment process. The security inherent in blockchain technology, combined with the automated nature of smart contracts, provides a robust foundation for managing compensation in the digital age. As more businesses turn to crypto payroll solutions, the use of smart contracts is set to play a central role in delivering secure, efficient, and reliable payment systems for employees and contractors around the world.