Legendary Silicon Valley tech incubator, Y Combinator, published a “Request for Startups” and among the different categories in the list is the call to build companies focused on stablecoins.
“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,” read the statement.
According to Y Combinator, stablecoins represent a pivotal moment for the digital economy–similar to the music industry. The company equates them to when the music industry transitioned from file sharing, to music players like Apple’s iPod, and then to music streaming with Spotify.
Collectively, stablecoins hold a $140 billion market cap, with $49 billion in 24 hour trading volume. Tether leads the pack, commanding 69% of the entire market, followed from afar by USDC which handles 20%.
“Immense Opportunity”
The company claims the opportunity for stablecoins seems “much more immense” than the current $140 billion market cap. Y Combinator alleges only 7 million people have transacted with these types of digital assets, meanwhile, half a billion people suffer under 30%+ inflation.
Tack on top that the stablecoin market cap accounts for a mere 8% of the total $2 trillion total crypto industry, and there is undoubtedly room for growth.
Y Combinator is one of the top technology-focused incubators in the world. It invests $500,000 in every startup of their two 3-month programs, along with a mentorship program to help companies grow–or prepare for their next round of funding. In return, the firm receives 7% equity.
Stablecoins are digital currencies pegged 1:1 with a fiat currency. They are usually linked to the U.S. Dollar, although a number of other national currencies have a digital equivalent.
For many in the crypto industry, stablecoins are considered the backbone of the ecosystem, with movements in volume and market cap a sign of interest–or apathy–from investors.
Last week, the stablecoins wars began to heat up, when representatives from USDC’s Circle and Coinbase asked U.S. Congress to help rein in the top stablecoin, USDT.
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