Y Combinator, Startup Incubator Behind Airbnb, Coinbase, and Stripe, Looks to Invest in Stablecoin Finance

YC also said that the numbers behind stablecoin finance reflect "the opportunity seems much more immense still."

AccessTimeIconFeb 19, 2024 at 8:52 a.m. UTC
Updated Mar 8, 2024 at 9:44 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now
  • Silicon Valley incubator Y Combinator has included stablecoin finance in its new request for startups (RFS) list.
  • The list is a YC tradition going back to 2009, offering up ideas the incubator wants to see made real.
  • Sen. Lummis Addresses Algorithmic Stablecoin Ban in New Bill
    19:02
    Sen. Lummis Addresses Algorithmic Stablecoin Ban in New Bill
  • Eisenberg's $110M Fraud Trial Opens; FSI Calls for Consistency in Stablecoin Regulation
    02:06
    Eisenberg's $110M Fraud Trial Opens; FSI Calls for Consistency in Stablecoin Regulation
  • El Salvador Bags Major Bitcoin Gains; Hong Kong's Stablecoin Push
    02:11
    El Salvador Bags Major Bitcoin Gains; Hong Kong's Stablecoin Push
  • Existing Stablecoin Models Are Not 'Totally Fair,' Usual CEO Says
    00:52
    Existing Stablecoin Models Are Not 'Totally Fair,' Usual CEO Says
  • Y Combinator (YC), the Silicon Valley incubator, has listed stablecoin finance as a category in its new and updated list of areas it would like to deploy funds in, according to its request for startups (RFS) list released last week.

    The RFS is a YC tradition, the blog said, one that goes back to 2009 offering up ideas the incubator wants to see made real. It helps startups understand which areas YC would like to invest in.

    “We would like to fund great teams building B2B and consumer products on top of stablecoins, tools and platforms that enable stablecoin finance and more stablecoin protocols themselves,” wrote Brad Flora, a Group Partner at YC.

    Citing PayPal’s (PYPL) move to issue its own stablecoin and how major banks have started offering custody services, Flora said their “utility is so straightforward it seems inevitable traditional finance will follow suit.”

    YC compared the future of stablecoins to digital music, explaining how digital music emerged from outlawed file-sharing models.

    YC said that although $136 billion worth of stablecoins have been issued to date, the opportunity in the sector is “much more immense still.” Despite the massive value of the tokens issued, only about seven million people have transacted with stablecoins, and there are only a handful of major stablecoin issuers.

    Edited by Parikshit Mishra.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Amitoj Singh

    Amitoj Singh is a CoinDesk reporter.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.