Cornerstone Global Management, a provider of payroll solutions with cryptocurrencies , announced on Monday the acquisition of Paydrop, which offers an array of financial services to small businesses.
The acquisition aims to scale Cornerstone's services over the coming quarters. It was a cash and stock swap deal, and Paydrop's senior leadership team is going to join the new parent, Cornerstone.
“Knowing the services and teams behind both Hedge and Paydrop, recommending the two work closer together seemed natural,” said Charlie Lee, the Founder of Litecoin and a Founding Advisor to Cornerstone.
“Cornerstone acquiring Paydrop is a smart move for both parties and will open up even more opportunities once Paydrop is connected to Hedge's pay conversion engine.”
Popularity in Crypto for Payroll
Cornerstone is known for its Hedge platform, which is a payment conversion platform transforming payroll into Bitcoin, Litecoin, Ethereum or stablecoins. These services are becoming popular as many companies are starting to pay their employees in cryptocurrencies.
After this acquisition , Cornerstone is focused on providing its payroll conversion services to any independent contractor and non-traditional employees within the United States.
In addition, the company highlighted that the merger will make Hedge a full-service platform and even allow its clients to make blended crypto and fiat transactions.
“Acquiring Paydrop just seemed like a no brainer for both parties and will open up even more opportunities once Paydrop is connected to Hedge's pay conversion engine,” Hedge’s founder, David Schwartz said.
Steven McClurg, the former CEO of Paydrop and now a Cornerstone Board Member and advisor, said: “The combination of Hedge's conversion of W-2 and other income along with Paydrop's 1099 payment capability will bring greater support to anyone who wants to be paid in Bitcoin, Litecoin, crypto or stablecoins.”
