Y Combinator will let founders in its next batch receive their seed checks in stablecoins, bringing one of startup land’s most influential deals onto public blockchains. A YC crypto partner told The Block the option will roll out first on Base, Solana, and Ethereum, signaling that on-chain rails are graduating from crypto-native niches to mainstream venture tooling.
The move applies to YC’s signature offer, the $500,000 investment for 7% equity, and gives startups the choice to take funds via stable digital dollars rather than traditional bank wires. While optional, the shift could materially lower friction for founders operating across borders, where slow settlement and high fees remain persistent pain points.
Why Stablecoin Seed Payouts Matter for Global Founders
For founders outside major financial hubs, receiving venture money can be a marathon of compliance checks, intermediary banks, and FX conversions. Stablecoin transfers settle in minutes and clear on nights and weekends, a trivial detail in rich markets that can be a lifeline in places where dollar access is constrained.
The World Bank has long estimated average cross-border transfer fees around 6%, with slower corridors costing more. By contrast, on-chain stablecoin transactions can be near-instant and low cost, especially on high-throughput networks. Coin Metrics data show stablecoins now settle trillions of dollars annually on public ledgers, underscoring their utility beyond speculation.
YC’s framing also acknowledges a reality many global founders already live: payroll, vendor payments, or customer receipts may flow through digital dollars such as USDC or similar instruments due to banking gaps and local currency volatility.
How the Stablecoin Seed Payout Option Will Work
YC says startups will be able to opt in to receive their funds via stablecoins on Base, Solana, or Ethereum. The organization did not specify a particular token publicly, but the choice of networks points to widely used, dollar-pegged assets with deep liquidity and strong compliance tooling.
Base, an Ethereum layer-2 incubated by Coinbase, offers low fees and straightforward on-ramps. Solana provides high throughput and fast finality, attractive for frequent transfers. Ethereum mainnet, while costlier, remains the most battle-tested settlement layer. Together, the trio covers speed, cost, and security preferences for different treasury needs.
On the operational side, founders can convert stablecoins to local fiat through regulated exchanges, keep some reserves on-chain for payments, or diversify across banking partners. For CFOs, the mechanics mirror existing treasury workflows, with the added need to define custody, key management, and conversion policies.
A Signal for Venture Capital and Crypto Markets
The stablecoin option dovetails with YC’s recent efforts to catalyze more blockchain startups, including collaborations with Base and Coinbase Ventures. It also arrives as U.S. policymakers inch toward clearer digital asset rules, with proposed stablecoin frameworks advancing in Congress and regulators outlining pathways for tokenized settlement under existing law.
Crypto-native funds have quietly been wiring investments in stablecoins for years. The difference now is that the most visible accelerator is normalizing the practice for the broader venture market. If adoption is strong, expect other incubators and seed firms to follow, particularly for international deals where wire rails remain brittle.
Benefits and the Fine Print for Startup Founders
The advantages are pragmatic: faster access to capital, lower transaction costs, and fewer intermediary failures. Founders in emerging markets can reduce FX slippage, maintain dollar exposure, and pay global vendors with fewer hoops.
But there are caveats. Startups will need clear controls for custody and compliance, including sanctions screening and audit trails. Accounting teams must reconcile on-chain activity with traditional ledgers, and tax treatment should be reviewed jurisdiction by jurisdiction. Network fees and occasional congestion still exist, though they are far less punitive on modern L2s and Solana.
What to Watch Next as YC Rolls Out On-Chain Payouts
The key metric is uptake: how many founders, especially outside crypto, choose stablecoin settlement over fiat wires. Also watch whether YC extends on-chain options to follow-on instruments, like pro rata rights or later tranches, and whether portfolio companies standardize vendor and payroll flows in digital dollars.
Regardless of the split, YC’s move is a milestone. It reframes stablecoins from a niche fintech tool into standard venture plumbing, aligning how startups raise with how many of them already operate. For global founders, it could make the first week after a term sheet less about waiting on a bank and more about getting to work.
