In a significant move for the global startup ecosystem, Y Combinator, the renowned Silicon Valley accelerator, has announced it will allow startups to receive their funding in USDC stablecoins. This option will be available to all companies in its cohorts starting with the Spring 2026 batch, regardless of whether they are crypto-native.
The accelerator will offer funding in USDC across major blockchain networks, including Ethereum, Base, and Solana. The decision marks a major endorsement of stablecoin technology from one of the world’s most influential startup investors, signaling a broader shift towards onchain financial infrastructure.
A Faster Cheaper Alternative to Traditional Banking
Y Combinator’s rationale is centered on the efficiency of stablecoins, particularly for international founders. Nemil Dalal, a visiting partner at YC, highlighted the speed and low cost of stablecoin transfers compared to legacy financial systems.
“Stablecoin transfers typically cost <1 cent and settle in <1 second, even across borders,” Dalal explained. “Traditional rails like international wires often cost tens of dollars once you factor in bank and intermediary fees, and can take days to settle. They also require lots of information. Sending money with stablecoins is to money what sending a text message is to information.”
This new payout option does not alter YC’s standard funding amounts or investment terms but provides founders with greater flexibility and efficiency in accessing their capital.
Why This Matters for MENA Startups
For founders across the Middle East and North Africa, YC’s decision presents a practical solution to persistent financial hurdles. Startups in the MENA region frequently grapple with the complexities of cross-border transactions, high intermediary bank fees, and delays in receiving international wire transfers. Accessing US dollar accounts can also be a significant operational challenge.
The ability to receive funding directly in USDC can bypass many of these issues, providing MENA-based startups with near-instant access to capital at a fraction of the cost. This allows founders to focus on building their product rather than navigating cumbersome banking logistics, leveling the playing field for international companies participating in top-tier accelerator programs.
YC’s Broader Onchain Strategy
This move is part of Y Combinator’s increasing focus on the potential of blockchain technology to overhaul financial services. Having backed nearly 100 crypto-related startups since its early investment in Coinbase in 2012, YC sees stablecoins and onchain finance as a core part of the future of startup operations.
Last year, the accelerator partnered with Coinbase to specifically back companies building onchain infrastructure, signaling its belief in a “Fintech 3.0” era. YC anticipates that even non-crypto companies will increasingly use blockchains for everything from raising capital and managing financial operations to eventually accessing public markets.
About Y Combinator
Y Combinator is a startup accelerator that has invested in over 4,000 companies since 2005, including Airbnb, Stripe, Dropbox, and Coinbase. It provides seed funding, mentorship, and a powerful network to early-stage startups through its biannual cohort programs. Its portfolio companies have a combined valuation of over $600 billion.
Source: The Block
