Ethereum Layer-2 Payments Rail Aims to Bypass Visa and Mastercard

Startup Colossus is developing an Ethereum layer-2 payments system designed to circumvent traditional payment networks like Visa and Mastercard by utilizing wallet addresses as cardholder identities. According to NS3.AI, the four-person team plans to integrate issuing, processing, and settlement processes while avoiding conventional KYC and money transmitter licensing, based on their interpretation of the GENIUS Act. Colossus has secured $500,000 in pre-seed funding, valuing the company at $10 million. This initiative follows the closure of UnCash, a provider of KYC-less card services.