Paris-based stablecoin card issuer Kulipa has abruptly ceased operations, rendering its U cards unusable for an estimated 20 wallet providers and crypto companies, including Solflare and Ready. The shutdown comes barely four months after the company closed a $6.2 million seed round co-led by Flourish Ventures and 1kx, with participation from White Star Capital and Fabric Ventures.
The sudden halt was first flagged by Solflare, which informed its community that the card-issuing partner had stopped operations due to solvency issues—a detail Kulipa itself has not publicly addressed. The collapse highlights the fragile economics of crypto card programs, where high compliance and operational costs can rapidly consume venture funding.
Because Kulipa operated on a self-custody model, user funds were never held by the company. Funds were only debited at the moment of a card transaction and converted in real time. As a result, no user deposits are trapped or lost. However, the shutdown leaves partner wallets without a physical spending channel, damaging their user experience and prompting a scramble for alternative card issuers.
The incident raises broader questions about the viability of self-custody card models and the unit economics of stablecoin payment services. With the stablecoin regulatory landscape still evolving, Kulipa’s rapid collapse may temper enthusiasm for similar ventures, even as stablecoin adoption continues to grow.
