Y Combinator offers $500k seed checks in stablecoins
Y Combinator announced that startups accepted into its Spring 2026 batch can receive their seed funding in stablecoins. The prestigious Silicon Valley accelerator will allow founders to choose whether they want their typical $500,000 investment delivered via traditional bank transfer or as USDC stablecoins. This marks the first time a top-tier accelerator has integrated blockchain payments directly into its standard investment process at scale. Nemil Dalal, Y Combinator’s crypto partner, stated that stablecoin transfers are often more effective, specifically for founders working in emerging markets.
Founders can choose to receive the tokens on various blockchains including Ethereum, Solana, and Base according to their preferences. Y Combinator’s standard deal typically provides $500,000 for 7% equity in the startup at the seed stage. The organisation stated it may expand to other stablecoin options in the future beyond USDC as the ecosystem develops. This option is available to all accepted startups regardless of whether they are crypto-focused or building in traditional sectors.
Stablecoin payments eliminate friction
The move reflects Y Combinator’s belief in an impending fintech renaissance and growing acceptance of digital currencies in traditional financial ecosystems. Stablecoin payments eliminate several pain points that international founders face when receiving venture capital from Silicon Valley investors. A YC founder in Southeast Asia or Latin America historically faced friction when receiving their seed check via traditional wire transfer. The process involves converting USD to local currency multiple times with spreads at each step, dealing with banking relationships that do not exist yet because the company is brand new. With stablecoins, the transfer becomes a transaction that settles within minutes on blockchain networks without intermediaries or foreign exchange losses.
For founders in emerging markets, this represents genuine savings of approximately two to three percent of the check amount plus significant speed improvements. Some of the fastest-growing YC startups in recent years like Aspora and DolarApp use stablecoins to power faster, cheaper financial services across India and Latin America. Y Combinator emphasised that sending money should be cheap, fast, and global using currencies people already trust without traditional banking friction. The timing aligns with passage of the GENIUS Act and growing adoption by financial institutions, creating regulatory clarity around crypto infrastructure.
From crypto niche to mainstream venture infrastructure
Y Combinator stated it expects many startups to use crypto in some way, from payments to banking to capital raising, whether they are crypto-focused or not. This announcement represents institutional venture capital moving payment infrastructure on-chain and signals that blockchain has graduated from experimental technology to operational backbone. The decision validates blockchain infrastructure not through rhetorical commitment but through actual capital deployment at scale by one of Silicon Valley’s most influential institutions. Y Combinator invests in approximately 500 companies per year across two batches, meaning roughly $250 million in annual venture capital could move to on-chain settlement.
The choice of Base, Solana, and Ethereum networks points to widely used, dollar-pegged assets with deep liquidity and strong compliance tooling. This shift could materially lower friction for founders operating across borders, where slow settlement and high fees remain persistent pain points in traditional finance. Y Combinator alumni include founders of Airbnb, DoorDash, Stripe, and Coinbase, making its endorsement of stablecoin infrastructure particularly significant for the startup ecosystem.
