Y Combinator announced plans to fund Web3 startups through a new “Fintech 3.0” initiative created in collaboration with Base and Coinbase Ventures on Sept. 23.
The accelerator targets companies building financial systems on blockchain infrastructure, citing regulatory clarity and infrastructure maturity as key factors enabling this sector’s growth.
The announcement, released simultaneously by Y Combinator and Base on Sept. 23, positions blockchain technology as the foundation for a new financial era where payments settle instantly worldwide for under one cent.
Y Combinator frames this as the third evolution of financial technology, following the initial digitization in the 1990s and the emergence of API-based services over the past decade.
According to the announcement, three factors have aligned to make on-chain finance viable now. The GENIUS Act established federal regulations for stablecoins, leading to a $30 billion market cap growth and interest from Amazon and Walmart in launching their own stablecoins.
Additionally, Layer-2 (L2) blockchain infrastructure has achieved sub-second, sub-cent transaction processing, with Base reporting nearly $15 billion in platform assets.
The third factor cited was growing market demand, with an estimated 560 million crypto users globally and $30 trillion in stablecoin settlements last year, representing a 300% year-over-year increase.
Strategic focus areas
Y Combinator identified three priority funding sectors. Stablecoins represent the primary opportunity, with dollar-pegged digital currencies proving the model for instant global payments.
The accelerator seeks companies building local currency stablecoins and crypto-native commerce platforms. Base reported over $4 billion in stablecoin value across its platform, including EURC, CADC, IDRX, and additional local variants.
The second focus area is tokenization and trading applications. The initiative targets startups that apply blockchain rails to traditional assets, enabling programmable equity tokens and global access to previously illiquid markets.
JPMorgan recently launched USD-backed deposit tokens on Base through its Kinexys platform, demonstrating institutional adoption of tokenized assets for instant settlement.
Applications and AI agents comprise the third sector, with Y Combinator backing companies building on-chain social platforms and autonomous trading systems.
Base’s Clanker AI agent generated over $13 million in revenue during its first five months by launching tokens through text commands, while other agents execute trades and create prediction markets.
Y Combinator positions the regulatory environment as the crucial enabler for this funding focus.
The accelerator argued that previous regulatory uncertainty prevented generational company building in crypto, making current federal frameworks essential for founder confidence in pursuing on-chain financial services.
