Executive Summary

Y Combinator, in partnership with Base and Coinbase Ventures, has announced the launch of a new initiative, "Request for Startups: Fintech 3.0," aimed at fostering the development of on-chain financial services. This collaboration signals a strategic move to build a new financial system leveraging blockchain technology, emphasizing instant, 24/7 global payments and user control over digital assets. The initiative is positioned as a response to increasing regulatory clarity, growing consumer adoption, and the maturation of low-cost blockchain infrastructure.

The Event in Detail

On September 23, 2025, Y Combinator, Base, and Coinbase Ventures unveiled their joint "Fintech 3.0" program. This initiative invites founders to develop financial systems on blockchain rails, marking what the collaborators describe as the "era of Fintech 3.0." This new phase of financial technology is characterized by building financial infrastructure with code, enabling continuous global transactions, and enhancing user control through digital wallets. The program is supported by advancements in regulatory frameworks, specifically citing the passage of the GENIUS Act in the U.S., which provides a clear crypto regulatory framework, and the SEC's announced "innovation exemptions" expected by December 2025. These developments are anticipated to instill confidence in founders building on-chain companies.

Financial Mechanics and Strategic Imperatives

The Fintech 3.0 initiative deconstructs the financial evolution into three primary focus areas: stablecoins, tokenization and trading, and applications with AI agents.

Stablecoins are identified as the initial success story for Fintech 3.0, facilitating global 24/7 transactions for less than one cent and in under one second. The market has seen trillions of dollars settled in stablecoins, with an reported $30 billion market cap growth and approximately $30 trillion in stablecoin settlements last year, representing a 300% year-over-year increase. Base itself reports over $4 billion in stablecoin value across its platform, supporting various local currency stablecoins like EURC, CADC, and IDRX. This highlights the established utility and significant scale of stablecoin operations.

Asset tokenization is a core component, focusing on transforming illiquid real-world assets into digital tokens on a blockchain, thereby making them tradable and globally accessible. This includes programmable equity tokens and broad access to previously inaccessible markets. JPMorgan has demonstrated institutional adoption by launching USD-backed deposit tokens on Base via its Kinexys platform, showcasing the potential for instant settlement of tokenized assets. This strategy aims to democratize financial markets by reducing high capital requirements and regulatory barriers that traditionally limit access to asset classes such as private equity and real estate.

Finally, the development of on-chain applications and AI agents with wallets represents a new frontier. These technologies are expected to simplify user experiences and actively participate in the expanding global digital economy. Google has contributed to this domain by releasing an open-source payments protocol enabling AI applications to transfer money, including via stablecoins, indicating a future of automated, AI-driven commerce.

Market Implications and Broader Context

This initiative by Y Combinator, Base, and Coinbase Ventures is poised to significantly accelerate the development and adoption of blockchain-based financial services. The strategic alignment with existing low-cost blockchain infrastructure, globally adopted stablecoins, user-friendly wallets, and a growing consumer base of an estimated 560 million crypto users globally suggests a robust foundation for growth. The emphasis on Layer-2 (L2) scaling solutions ensures high throughput with sub-second, sub-cent transaction processing, addressing critical scalability challenges.

From a strategic perspective, this collaborative effort by prominent venture capital firms and a major blockchain platform aims to solidify the Web3 ecosystem's role in mainstream finance. By actively funding and supporting builders, the initiative seeks to attract new talent and capital into the sector, potentially shaping future regulatory frameworks around on-chain finance. The focus on transparent, auditable, and accessible financial tools aligns with the broader movement towards a more efficient and inclusive global financial system.

Regulatory Landscape and Future Outlook

The timing of the Fintech 3.0 launch is critical, coinciding with significant advancements in regulatory clarity within the United States. The passage of the GENIUS Act provides a federal framework for stablecoins, and the SEC's planned "innovation exemptions" aim to ease the regulatory burden on crypto firms. This shifting regulatory landscape is crucial for fostering innovation and encouraging the mainstream adoption of blockchain technologies. The initiative's success could serve as a model for corporate adoption of Web3 solutions, potentially driving further institutional interest and investment in the on-chain economy. The collaboration underscores a collective vision for a future where digital assets and blockchain technology form a pillar of the next-generation financial system, removing intermediaries and enhancing transparency.