Startup Colossus Aims to Challenge Visa and Mastercard With KYC-Less Crypto Card Network

Crypto startup Colossus is developing a new payment network designed to compete with traditional card giants like Visa and Mastercard. Built on an Ethereum layer-2 network, the platform aims to enable users to spend stablecoins through crypto-linked cards without relying on traditional banking settlement systems.

Unlike conventional payment networks, Colossus plans to reduce intermediaries by combining the roles of issuer, processor, and settlement system into a single blockchain-based infrastructure. Transactions would be verified through cryptographic signatures and on-chain stablecoin transfers, potentially lowering payment fees and enabling faster settlements.

The project also explores a controversial model that may operate without traditional KYC identity checks, using wallet addresses as the main user identifier. While the concept aims to create a more open crypto payment system, it could face regulatory and compliance challenges as governments continue tightening rules around financial transactions

Clever Robot News Desk 10^th March 2025