What are stablecoins: how they solve the problem of international payments in Gusto

Stablecoins are cryptocurrencies pegged to stable assets such as fiat currencies or gold. They serve as a bridge between traditional finance and the digital world, enabling companies to make payments quickly and efficiently. Recently, payroll management platform Gusto chose this technology by integrating Zerohash’s infrastructure to facilitate international payments to employees and contractors. This initiative reflects the growing trend of using blockchain to address global workforce challenges.

Stablecoins are the next generation of cryptocurrencies

In practice, stablecoins are digital assets that maintain relatively stable value thanks to reserves. The largest player in the market is USDT from Tether, followed by USDC from Circle. Both stablecoins are backed by corresponding reserves and are recognized by both the crypto community and financial institutions.

These assets perform two critical functions. First, they serve as a payment instrument, allowing funds to be transferred between participants almost instantly. Second, they facilitate cross-border capital movement, bypassing traditional restrictions and delays inherent in classic transfers.

Why small businesses need fast international payments

The labor market is rapidly globalizing. According to Gusto research, about one-third of small US businesses already outsource at least one function, and by 2025, 11% will use international contractors. This trend creates an urgent need for efficient settlement solutions.

Traditional methods of international transfers require three to seven days to complete. Such delays cause serious problems: contractors lose confidence in income stability, companies face administrative difficulties in tracking payments, and financial flows become unpredictable. This system, created several decades ago, no longer meets the demands of the digital economy.

How Zerohash and Gusto are solving the payment delay problem

The collaboration between Zerohash and Gusto is aimed precisely at this issue. The platform integrates a regulated stablecoin infrastructure that allows settlements with contractors outside the US within minutes, not days. According to Edward Woodford, founder and CEO of Zerohash, “As the workforce becomes more global and digital, traditional payment systems are no longer capable of providing the speed and flexibility required by modern business.”

The integration is currently in beta testing. Qualified contractors can receive income in stablecoins denominated in US dollars with minimal delays. The system supports both custodial wallets (managed by a third party) and self-custodial wallets (managed by the user), providing maximum flexibility for workers.

Advantages of stablecoins over traditional methods

Using stablecoins for international payments offers many advantages that distinguish this model from classic financial tools.

Speed: while traditional bank transfers take 3-7 days, stablecoins enable payments within minutes thanks to blockchain technology.

Transparency: all transactions are recorded on a distributed ledger, ensuring full traceability and auditability of payments.

Lower fees: blockchain eliminates the need for intermediary banks, significantly reducing transfer costs.

Regulation: Zerohash works with regulated organizations operating in multiple jurisdictions, ensuring compliance with legislation.

Real-world implementation: how Gusto’s payment system works

Gusto serves over 400,000 small business employers, and now all of them have a new tool for global settlements. Payments are made directly on the blockchain with full support from regulated organizations.

The system structure includes multiple layers of security. First, workers can choose their payout method. Second, all operations go through verified infrastructure providers. Third, the reserves backing the stablecoins are stored in secure accounts at licensed banks, ensuring the safety of funds.

Global distribution partner Aquanow will support institutional access to the system beyond the initial regions. This creates conditions for scaling the solution worldwide.

The future of fintech: stablecoins and the global workforce

The Gusto and Zerohash initiative is part of a broader movement in the fintech industry. Major players, including Mastercard, are actively investing in crypto infrastructure. Recent reports indicate Mastercard’s interest in acquiring Zerohash, highlighting the strategic importance of stablecoins for traditional payment systems.

Stablecoins are not just speculative tools—they are transforming the way capital moves between countries and people. As companies increasingly hire remote and temporary workers, demand for fast, secure, and transparent international payments will only grow. Gusto demonstrates how traditional HR platforms can successfully integrate blockchain technology to offer their clients a competitive edge in the global economy.