Y Combinator’s New Crypto Batch Focuses on Stablecoins and Payments | News
Summary
YC has backed 80 crypto and Web3 startups, including Coinbase, Protocol Labs, and CoinTracker. Stablecoins have a combined market cap of over $232 billion.San Francisco-based venture capital firm and startup accelerator Y Combinator (YC) has added a fresh batch of crypto and Web3 startups to the first incubator of 2025.With favorable regulatory changes coming to crypto and a year of incredible growthat least in the U.S.the startup accelerator is now throwing its weight behind stablecoin and digital payments startups.Stablecoins are emerging as a dominant force in the crypto economy, with their role as a payment method becoming more pronounced.According to crypto exchange CEX , in 2024, stablecoin transfer volumes exceeded $27.6 trillion, surpassing the combined volumes of Visa and Mastercard by 7.68%. A 59% increase in stablecoin supply and bullish market conditions drove this growth.The trend is set to continue in 2025 as the U.S. moves toward a more crypto-friendly landscape under President Donald Trump.Notably, Trumps executive order banning the creation and issuance of U.S. dollar central bank digital currencies (CBDCs) has given stablecoins room to expand.Y Combinator (YC) is doubling down on this momentum, backing three stablecoin startups this year. According to Y Combinator President and CEO Garry Tan, the firm has created more than $800 million in market value over these two decades.Of the 80 crypto and Web3 firms it has backed over the years, some have become the most recognizable brands and trusted technologies in the space.Notably, it fostered the early growth of Coinbase in 2012. This company is responsible for creating the decentralized storage network, the InterPlanetary File System (IPFS).It also created a separate blockchain-based storage network and crypto called Filecoin (FIL), which currently has a market cap of $1.7 billion.