Silicon Valley accelerator Y Combinator: Stablecoins have unique advantages and are still a blue ocean

The well-known startup accelerator Y Combinator YC has outlined its expectations and vision for stablecoin startups in its latest startup request, stating that the market is still full of opportunities and aligns with major trends. They look forward to seeing more stablecoin projects emerge and become mainstream in the future.

What do YC's startups request?

Although Y Combinator does not limit the themes of startup applications for accelerator guidance, each year they share projects and ideas discussed among partners in hopes of seeing more entrepreneurs move in these directions.

This year's themes include space industry, climate technology, open-source products, new types of ERP, innovation in healthcare systems, software integration tools, and cancer-ending technology, all of which Y Combinator partners believe are markets with potential and demand in the future.

YC's Focus on Stablecoins

Y Combinator also mentions stablecoins in this list, stating that the stablecoin sector is definitely a future trend, with very few current competitors.

Advantages of Stablecoins Leading to New Trends

YC believes that the advantages of stablecoins come from their ability to be used at any time of day, for transactions between any two wallets, completing transactions within seconds, with fees being only a fraction of traditional finance. Stablecoins can be used for cross-border payments, reducing transaction costs and fraud, and helping users protect their deposits from the impact of malicious currency inflation.

Traditional finance will eventually catch up with stablecoin innovation. For example, PayPal recently issued its own stablecoin PYUSD, and major banks have begun providing custody services and promoting them extensively.

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The development of the stablecoin industry seems somewhat similar to the transition of digital music from the early 2000s' online piracy ecosystem to the new industry norm led by players like Apple, making it easy for everyone to purchase and listen to music.

Low Competition in the Stablecoin Market

Although stablecoins worth approximately $136 billion have been issued to date, Y Combinator assesses that the market opportunity is still very significant. With US banks holding $17 trillion in customer deposits, there is still significant room for growth in stablecoins. On the other hand, the major stablecoin issuers can be counted on one hand, indicating that market competition is still not very intense, representing a blue ocean market.

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The user base for stablecoins is still relatively small. Currently, only about 7 million people use stablecoins for transactions, while over 500 million people live in countries with inflation rates exceeding 30%.

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Great Opportunities in Stablecoin Projects

Given the above, Y Combinator believes that stablecoins are a clear future trend, with huge market opportunities and still a blue ocean market. They look forward to seeing more entrepreneurs invest in this field, whether it's related tools, B2B payment solutions, stablecoin issuers, or solutions for handling compliance issues.