Y Combinator to add stablecoin payout for startups in 2026

Y Combinator will allow startups to receive funding in stablecoins starting with the spring 2026 batch, according to a statement from a YC partner.

The stablecoin payout option will be available to all YC-funded startups, not just crypto-related firms, and will support USDC.

YC cited the potential benefits of stablecoins, including lower transaction costs and faster settlement times, especially for cross-border payments.

The move follows recent regulatory developments in the US, including the passage of the GENIUS Act.

YC highlighted existing use cases among its portfolio companies, which use stablecoins to facilitate transactions in regions with limited banking infrastructure.

The firm clarified that this option does not alter funding amounts or terms, providing an additional method for founders to receive capital.

Y Combinator has invested in nearly 100 crypto-related startups since 2012.

🔗 Source: The Block

🧠 Food for thought

Implications, context, and why it matters.

The GENIUS Act created a clearer regulatory backdrop for YC’s stablecoin move

Y Combinator’s decision came after Congress passed the GENIUS Act last year, which set a U.S. regulatory framework for payment stablecoin issuers 1.
The law removes ambiguity by saying payment stablecoins are not securities or commodities, which cuts a source of doubt for institutional users such as Y Combinator 1.
The act also requires permitted payment stablecoin issuers to hold reserves that fully back outstanding payment stablecoins on at least a one-to-one basis. Issuers must also publish monthly reports on reserve composition, average maturity, and custody location that are certified by the issuer’s CEO and CFO 2.
Clearer rules plus regular disclosures can lower friction for established organizations that want to use stablecoins in day-to-day finance.

YC’s embrace of stablecoins could signal a ‘money market moment’ risk that banks worry about

By making USDC a standard way to fund companies across several blockchain networks, Y Combinator speeds up a shift toward a wallet-based treasury model. Startups can avoid the hassle of running many international bank accounts 3.
Commercial banks have raised concerns about deposit flight if startup cash moves from bank accounts into stablecoin products that pay rewards or yield through affiliated firms or crypto exchanges 4.
One analyst estimated that some people could move 5% to 10% of their funds from bank accounts into wallets, which could trigger a “money market moment” that pressures bank revenue 3.
Given Y Combinator’s large portfolio, the move could create network effects that push thousands of companies toward programmable money (digital money that can be moved or managed automatically by software). It could also open the door to AI agents making real-time payments 5.