Y Combinator to Offer Startups Option to Receive Funding in Stablecoins

Y Combinator has moved to let founders opt to receive seed capital in stablecoins, marking a formal expansion of its payment options ahead of the Spring 2026 cohort. The accelerator will make USDC available on multiple networks, a step intended to speed settlement and cut transfer costs compared with conventional international bank rails. YC frames the decision as a response to shifting regulatory conditions and increasing real-world stablecoin usage among its portfolio companies in regions with limited banking access. The choice does not alter YC’s investment size or contractual terms; it merely changes the delivery vehicle for the capital. For founders who work across borders or in markets with expensive remittance corridors, instant settlement and near-zero unit costs could reduce operational friction and lower cash management overhead. YC’s embrace of tokenized payouts also signals a broader bet that blockchain rails will gradually take on more treasury and payments functions for startups, even those not building crypto products. The move follows a trend of ecosystem players experimenting with onchain settlement for payroll, developer bounties, and cross-border supplier payments. While the option simplifies some flows, it introduces new operational questions around custody, compliance, tax reporting, and volatility management for firms that choose onchain receipts. Startups will need procedures for converting stablecoin holdings into local currency, securing private keys, and adhering to any jurisdictional rules on crypto payments. The decision could accelerate stablecoin utility cases in Latin America, South Asia, and other regions where YC companies already deploy digital-dollar rails. Over time, if other accelerators and VCs follow suit, the capital formation and payout landscape for early-stage companies may increasingly incorporate programmable money as a standard tool. The near-term impact is practical and narrow—alternative payout rails available to YC-backed founders—but the strategic implication is larger: a signal from a top accelerator that tokenized settlement is ready for mainstream operational use.