Y Combinator introduced plans to fund Web3 startups by way of a brand new “Fintech 3.0” initiative created in collaboration with Base and Coinbase Ventures on Sept. 23.
The accelerator targets firms constructing monetary programs on blockchain infrastructure, citing regulatory readability and infrastructure maturity as key components enabling this sector’s development.
The announcement, launched concurrently by Y Combinator and Base on Sept. 23, positions blockchain expertise as the muse for a brand new monetary period the place funds settle immediately worldwide for underneath one cent.
Y Combinator frames this because the third evolution of economic expertise, following the preliminary digitization within the Nineties and the emergence of API-based providers over the previous decade.
In response to the announcement, three components have aligned to make on-chain finance viable now. The GENIUS Act established federal laws for stablecoins, resulting in a $30 billion market cap development and curiosity from Amazon and Walmart in launching their very own stablecoins.
Moreover, Layer-2 (L2) blockchain infrastructure has achieved sub-second, sub-cent transaction processing, with Base reporting practically $15 billion in platform belongings.
The third issue cited was rising market demand, with an estimated 560 million crypto customers globally and $30 trillion in stablecoin settlements final 12 months, representing a 300% year-over-year enhance.
Strategic focus areas
Y Combinator recognized three precedence funding sectors. Stablecoins signify the first alternative, with dollar-pegged digital currencies proving the mannequin for fast international funds.
The accelerator seeks firms constructing native forex stablecoins and crypto-native commerce platforms. Base reported over $4 billion in stablecoin worth throughout its platform, together with EURC, CADC, IDRX, and extra native variants.
The second focus space is tokenization and buying and selling purposes. The initiative targets startups that apply blockchain rails to conventional belongings, enabling programmable fairness tokens and international entry to beforehand illiquid markets.
JPMorgan lately launched USD-backed deposit tokens on Base by way of its Kinexys platform, demonstrating institutional adoption of tokenized belongings for fast settlement.
Purposes and AI brokers comprise the third sector, with Y Combinator backing firms constructing on-chain social platforms and autonomous buying and selling programs.
Base’s Clanker AI agent generated over $13 million in income throughout its first 5 months by launching tokens by way of textual content instructions, whereas different brokers execute trades and create prediction markets.
Y Combinator positions the regulatory setting because the essential enabler for this funding focus.
The accelerator argued that earlier regulatory uncertainty prevented generational firm constructing in crypto, making present federal frameworks important for founder confidence in pursuing on-chain monetary providers.
