{"id":46418,"date":"2026-03-09T05:33:21","date_gmt":"2026-03-09T05:33:21","guid":{"rendered":"https:\/\/diyhaven858.wasmer.app\/index.php\/inside-the-quest-at-colossus-to-replace-visa-and-mastercard-with-kyc-less-crypto-cards\/"},"modified":"2026-03-09T05:33:21","modified_gmt":"2026-03-09T05:33:21","slug":"inside-the-quest-at-colossus-to-replace-visa-and-mastercard-with-kyc-less-crypto-cards","status":"publish","type":"post","link":"https:\/\/diyhaven858.wasmer.app\/index.php\/inside-the-quest-at-colossus-to-replace-visa-and-mastercard-with-kyc-less-crypto-cards\/","title":{"rendered":"Inside the Quest at Colossus to Replace Visa and Mastercard With KYC-Less Crypto Cards"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div xmlns:default=\"http:\/\/www.w3.org\/2000\/svg\" data-testid=\"article-body\">\n<div class=\"bodyItems-wrapper\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>Joseph Delong\u2019s desk looks less like a developer\u2019s workstation these days and more like an electronics repair shop, littered with technology that crypto was pioneered to replace.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>That\u2019s because the veteran Ethereum developer and former SushiSwap CTO has accumulated what he describes as a \u201cbox of goodies\u201d while building a stablecoin credit card network called Colossus\u2014from point-of-sale test terminals to card readers and manufacturer sample books.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>\u201cTrying to get my hands on the hardware, it\u2019s like this arcane knowledge that nobody could get access to,\u201d Delong told <\/span><i><span>Decrypt<\/span><\/i><span> from his home office in San Antonio, Texas.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>Consisting of four employees, the company expects its Ethereum layer-2 scaling network to debut in March, and it&#8217;s designed in a way that replaces traditional bank settlement with a sovereign credit card rail that treats users\u2019 account addresses as their sole identity.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>Colossus has raised $500,000 in pre-seed funding, according to documents shared with <\/span><i><span>Decrypt<\/span><\/i><span>. Those investments valued the startup at $10 million, Delong said.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>In theory, Colossus will enable users to \u201cburn their cards from their home,\u201d but Delong acknowledged that building a service enabling anyone to pay for things with crypto while circumventing incumbents like Mastercard and Visa has been no easy task. And those efforts may present unforeseen hurdles.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>Part of that has to do with disrupting longstanding relationships between businesses involved in the settlement process behind incumbent credit card networks, which weren\u2019t built on the cypherpunk principles that Delong is committed to imbuing Colossus with.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->SEC Moves to Settle Justin Sun Case With $10M Penalty for BitTorrent Owner<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>\u201cMany of these entities don\u2019t see this as a problem because they\u2019ve established this relatively high-quality trust relationship over time,\u201d he said. \u201cThey\u2019re able to settle in between all these different banks on either promises or a little bit of collateral.\u201d<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>In a traditional swipe, what\u2019s known as an issuing bank serves as the primary gatekeeper, approving transactions after verifying balances and identities in line with know-your-customer (KYC) and anti-money laundering (AML) requirements.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>Issuers fit into a chain of middlemen, which includes member associations like Mastercard and Visa that set their networks\u2019 rules, processors that handle the technical messaging, and acquirers that manage relationships with merchants, such as Worldpay and Fiserv.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>Colossus is designed to collapse this entire stack by vertically integrating the issuer, processor, and settlement network. Instead of needing a bank to approve the movement of deposits, the firm\u2019s layer-2 network uses cryptographic signatures to instantly trigger stablecoin transfers. In theory, that means a reduction in overall fees.<\/span><!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<p>   <button class=\"secondary-btn fin-size-large readmore-button    rounded   yf-r7dg9i\" data-ylk=\"elm:readmore;itc:1;sec:content-canvas;slk:Story%20Continues\" data-yga=\"{&quot;yLinkElement&quot;:&quot;readmore&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Story Continues&quot;}\" aria-label=\"Story Continues\" title=\"Story Continues\"> <span>Story Continues<\/span> <\/button> <\/p>\n<div class=\"read-more-wrapper\" style=\"display: none\" data-testid=\"read-more\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>The arrangement preserves the role that acquirers fulfill for merchants, serving as the critical distribution mechanism for point-of-sale terminals already sitting in millions of stores. They effectively act as a bridge for Colossus, liquidating on-chain stablecoin transfers into the traditional wire transfers that businesses rely on to pay expenses.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>\u201cI don\u2019t know who convinced all these crypto people that merchants want stablecoins,\u201d Delong said. \u201cThey generally want something that they can pay their suppliers with.\u201d<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>Although merchants may not find much use in holding stablecoins now, the firm is using them in a relatively novel way\u2014collecting as little information about its customers as possible.\u00a0<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>When it comes to the company\u2019s interpretation of a regulatory framework for stablecoins signed in federal law last year, Colossus has determined that the GENIUS Act does not require it to adhere to compliance protocols designed to prevent financial crimes by obtaining personal information like issuers do, nor attain money transmitter licenses across states.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>Delong said its network\u2019s sequencer, which orders and batches transactions before sending them to the Ethereum network, may have certain design features to comply with sanctions issued by the U.S. Treasury Department&#8217;s Office of Foreign Assets Control (OFAC).<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>That would essentially filter transactions through a centralized door, without baking banking rules into the underlying code of Colossus\u2019 network.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Federal Contractor\u2019s Son Arrested, Charged With Stealing $46 Million From US Crypto Stockpile<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>Several startups have tried to establish KYC-less, crypto-linked cards before. But those relying on networks from payment incumbents have historically struggled to gain long-term traction, including UnCash, which announced its shutdown abruptly last month.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>In a since-deleted announcement, UnCash pointed the finger at Mastercard. An abrupt termination by its card issuers amounted to a \u201cclean, corporate guillotine,\u201d the firm said.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>UnCash noted that 90% of its cards ran on Mastercard\u2019s network. The firm was reportedly among those leveraging a common \u201cloophole,\u201d issuing thousands of cards for purported employees under a single business identity, per <\/span><i><span>Fintech Business Weekly<\/span><\/i><span>.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>Most crypto-linked cards are established through partnerships with Mastercard or Visa. While Delong is trying to cut that duopoly out of the loop alongside issuers, he still respects firms like Coinbase and Gemini are taking \u201ca relatively easy road\u201d to build momentum quickly.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>\u201cWhat we\u2019re doing is a little bit more quixotic initially, but it has long-term benefits,\u201d he said. \u201cThe idea that you have to KYC or AML for a credit card is a little silly, I think.\u201d<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Iran Regime&#8217;s Crypto Activity Topped $3 Billion as Illicit Transactions Surged in 2025: Report<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>Even so, such products are becoming increasingly popular. Crypto-linked cards facilitated $1.5 billion in stablecoin volume last August, doubling from a year prior, according to a <\/span><span>report<\/span><span> published by crypto analytics firm Artemis earlier this year.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>The report found that firms in Latin America, EMEA, and Southeast Asia were pronounced in using crypto-linked cards as a way to \u201ctarget populations facing acute financial frictions,\u201d including inflationary local currencies and capital controls.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>In the U.S., some lawmakers vocalized concerns that the GENIUS Act did not sufficiently address illicit finance concerns before its passage. Delong described Colossus as a company that could make crypto feel a bit more like cash, while also enabling people to fully live on-chain.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>Delong\u2019s motivation for building Colossus is also somewhat personal. He cast off bank accounts as a place to store value years ago, but still liquidates stablecoins regularly to cover bills.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><span>\u201cI really want to make an impact,\u201d he said. \u201cI think this is the last rail that will give us full liberty.\u201d<\/span><!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p><br \/>\n<br \/><a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Joseph Delong\u2019s desk looks less like a developer\u2019s workstation these days and more like an electronics repair shop, littered with technology that crypto was pioneered to replace. That\u2019s because the veteran Ethereum developer and former SushiSwap CTO has accumulated what he describes as a \u201cbox of goodies\u201d while building a stablecoin credit card network called [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":46419,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[10],"tags":[4918,107,4919,2698],"class_list":["post-46418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","tag-colossus","tag-credit-card","tag-joseph-delong","tag-mastercard"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/diyhaven858.wasmer.app\/wp-content\/uploads\/2026\/03\/04afddc3518919a5805669deafdcd21d.png","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts\/46418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/comments?post=46418"}],"version-history":[{"count":0,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts\/46418\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/media\/46419"}],"wp:attachment":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/media?parent=46418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/categories?post=46418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/tags?post=46418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}