New York’s Crypto Cash Transfer Program: 160 Recipients to Get $12,000 Each Through Stablecoin Payments

Innovative Financial Assistance Program Leverages Cryptocurrency for Direct Aid in Low-Income Communities

In a groundbreaking approach to financial assistance, 160 New York City residents are now participating in a five-month cash transfer program that will provide each recipient with $12,000 in cryptocurrency. The program, which began in September and will continue through February, utilizes USDC—a stablecoin pegged to the U.S. dollar—to distribute funds directly to participants from two of the city’s lowest-income neighborhoods.

This innovative pilot represents an intersection of traditional guaranteed income concepts with modern financial technology, creating a unique opportunity to assess how cryptocurrency might serve as an effective tool for economic support in underserved communities. By combining regular monthly payments with a substantial one-time sum, the program aims to provide both stability and opportunity for recipients while gathering valuable data on the efficacy of crypto-based financial assistance.

The Financial Structure: Monthly Payments and a Strategic Lump Sum

Unlike typical guaranteed income programs that rely solely on regular installments, this pilot features a hybrid approach to disbursement. Each participant receives $800 monthly in USDC delivered directly to their crypto wallets. What distinguishes this program, however, is the additional one-time payment of $8,000 that was distributed to all participants in November. By the conclusion of the five-month initiative in February, each recipient will have received a total of $12,000 in cryptocurrency.

“A lot of the research in our international work and in the US has shown that a lump sum could allow people to invest or do things that might have higher costs, like a security deposit or sign up for an education or training program,” explained Emma Kelsey, who leads the New York cash transfer project, in comments to Business Insider. “But, also, it’s something that we’ve heard from participants is a preference.”

This approach draws inspiration from another program called In Her Hands in Georgia, also operated by GiveDirectly, which tested the effectiveness of larger upfront payments versus strictly recurring transfers. “We did a lot of community research and heard from them that this lump sum approach could be more valuable for them versus a standard recurring payment model,” Kelsey noted, highlighting how community feedback directly influenced the program’s structure.

Targeting Communities in Need: South Bronx and East Harlem

The selection of participants from the South Bronx and East Harlem was deliberate and strategic. These neighborhoods represent some of New York City’s most economically challenged areas, with household incomes significantly below city averages. The concentrated need in these communities made them ideal candidates for testing the potential benefits of cryptocurrency-based financial assistance.

“We chose New York, in particular the South Bronx and East Harlem, because there are incredibly low-income areas,” Kelsey explained. “There has also been support from politicians in the area around crypto, making it accessible. It seems like a really natural fit where the need was high, but also the ecosystem around crypto had more support than in some other areas.”

This decision reflects a growing awareness among policymakers and nonprofit organizations that targeted financial assistance can have meaningful impacts on communities facing persistent economic challenges. By focusing on specific neighborhoods rather than implementing a city-wide approach, the program can better assess outcomes in areas where traditional financial systems have often fallen short.

The Cryptocurrency Distinction: Using USDC as the Payment Rail

What truly sets this pilot apart from most guaranteed income initiatives is its reliance on cryptocurrency rather than conventional banking channels. All transfers to participants utilize USDC, a stablecoin that maintains a consistent value equivalent to the U.S. dollar while benefiting from the efficiency and accessibility of blockchain technology.

This distinctive feature allows researchers to examine whether receiving funds through crypto wallets influences spending behavior, financial planning, or overall utility compared to traditional bank transfers. “We are really interested to see if people use it differently,” Kelsey remarked. “Do they perceive it differently? Is it more or less useful to them?”

The choice of cryptocurrency also addresses practical concerns regarding financial inclusion. Many residents in the targeted neighborhoods face significant barriers when dealing with traditional banking institutions, including minimum balance requirements, transaction fees, and limited physical branch locations. Cryptocurrency wallets potentially offer a more accessible alternative that circumvents these obstacles. “We thought it would be a good opportunity to see if this type of payment modality would be viewed favorably,” Kelsey added, suggesting that digital currencies might provide solutions to long-standing issues of financial access in underserved communities.

The Funding Journey: From Coinbase to Direct Community Support

While the program is currently administered by GiveDirectly, the funding originated from Coinbase, one of the world’s largest cryptocurrency exchanges. However, the relationship between the exchange and the program is not direct. The funds were donated to the nonprofit organization after Coinbase discontinued its own philanthropy program two years ago.

This transition from corporate philanthropy to nonprofit implementation represents an interesting model for how private sector resources can be channeled into community-based initiatives through established nonprofit partners. By leveraging GiveDirectly’s expertise in cash transfer programs and community engagement, the original funding from Coinbase can potentially achieve greater impact than it might have through direct corporate giving.

The program also demonstrates how cryptocurrency companies are seeking to demonstrate practical, beneficial applications of blockchain technology beyond speculation and investment. By funding initiatives that use digital currencies for tangible social good, companies like Coinbase can illustrate the humanitarian and social potential of the technology they’re developing.

Measuring Success: The Research Value of Crypto-Based Cash Transfers

As the program continues through February, researchers will be closely monitoring outcomes to determine whether this innovative approach to guaranteed income delivers on its promises. The pilot serves multiple research purposes: evaluating the effectiveness of combining lump sum and regular payments, assessing the viability of cryptocurrency as a distribution mechanism for financial assistance, and understanding how recipients in historically underbanked communities respond to receiving aid through digital wallets.

“The goal is simple on paper. Move real money to real people using crypto rails and track what happens,” summarizes the fundamental research question driving this initiative. The findings could have far-reaching implications for how future guaranteed income programs are structured and delivered, potentially opening new pathways for efficient, accessible financial support to communities in need.

Unlike universal basic income concepts that would provide payments to all residents regardless of economic status, this targeted approach focuses resources specifically on households near or below the poverty line. This targeting strategy allows for a more concentrated impact and clearer assessment of outcomes among those facing the greatest financial challenges.

As this pioneering program approaches its conclusion in February, its results may well influence the future direction of both guaranteed income initiatives and practical applications of cryptocurrency in addressing economic inequality. By bridging traditional concepts of direct financial assistance with cutting-edge digital currency technology, New York’s crypto cash transfer program represents an important experiment in reimagining how financial support can be delivered in the 21st century.