Crypto Startup Raises $500K to Launch Layer-2 Stablecoin Card Competing with Visa
Colossus has raised $500,000 in pre-seed funding at a $10 million valuation to support its Ethereum layer-2 stablecoin credit card network, slated to debut in March. The platform collapses issuing, processing and settlement via cryptographic signatures, enabling instant stablecoin transfers and potentially undercutting Visa’s fee structure.
1. Pre-Seed Funding and Valuation
Colossus raised $500,000 in pre-seed funding at a $10 million valuation to develop its layer-2 stablecoin credit card network. The startup’s four-person team plans to use these funds to finalize hardware integration and launch test terminals ahead of its network debut in March.
2. Network Architecture and Settlement
The platform merges the roles of issuer, processor and acquirer by using cryptographic signatures on an Ethereum layer-2 chain to trigger instant stablecoin transfers. This vertical integration eliminates traditional bank settlement processes and reduces intermediary fees by replacing KYC-dependent rails.
3. Disruption Potential for Visa and Mastercard
By enabling users to pay with stablecoins directly from their wallets, Colossus aims to undercut incumbent credit card fee structures. Its card readers and point-of-sale terminals are designed to function without traditional bank approvals, posing a long-term challenge to established networks.