> For the complete documentation index, see [llms.txt](https://docs.laso.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.laso.finance/the-company/how-and-why-it-started.md).

# How and Why It Started

The history of Laso Finance's beginnings.

*A personal story from Hunter Monk, founder.*

In 2021, there were very few crypto card options. [Crypto.com](https://crypto.com/us) had some traction. [Coinbase Card](https://www.coinbase.com/card), [MetaMask Card](https://metamask.io/card) and others didn't exist.

Instead, we would send crypto assets to our exchange, wire or ACH to our bank account, and pay off our credit cards. It wasn't an improvement on the banking system, or even equal to it. It was fiat banking with extra steps.

That meant the process was:

1. Higher friction
2. Slower
3. Lost privacy 

In addition, at that time, banks would [freeze accounts that received funds from exchanges](https://www.linkedin.com/posts/a16z_what-is-debanking-and-why-is-it-happening-activity-7274562040612937728-yU3c), making the entire process dangerous.

I set out to fix that. Enter Laso Finance's predecessor, Two Squared.

<figure><img src="https://4199652940-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F594XROWggjchM2lduPt1%2Fuploads%2FwvzPzVwOkoI4x3EWZkvC%2FIMG_0272.HEIC?alt=media&amp;token=19c741e6-efa8-4b7c-af8a-16c7859e9cd2" alt=""><figcaption></figcaption></figure>

It was the non-custodial, no ID upload required, and built on [Lightning](https://lightning.network/). It launched at [Bitcoin Miami 2021](https://2021.b.tc/).

By launch, I mean that I set up a table in the lobby of the hotel where the conference was hosted. I created a *beautiful* iPad sign to attract new users.

<figure><img src="https://4199652940-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F594XROWggjchM2lduPt1%2Fuploads%2FENo1BzaxXZ5iREalaJsL%2FIMG_1571.HEIC?alt=media&amp;token=493bd8f0-d7e3-463f-8edc-b978fce9ae1b" alt=""><figcaption></figcaption></figure>

Surprisingly, attendees walking by were not entranced by the engaging, trustworthy signage. It's hard to convey how little traction it got.

However, the few attendees I did talk to *were interested* in the frictionless, privacy preserving signup process.

The feedback was clear. Unfortunately, instead of doubling down on that, I let the pain of the failed "launch" win, and I just went back to work at Meta in the Virtual Reality Labs.

Later in 2021, during my spare time at Meta, I started building small crypto projects. The market was strong. Exciting.

<figure><img src="https://4199652940-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F594XROWggjchM2lduPt1%2Fuploads%2FbqYJJnsNgWemwqzpPHa5%2FHLyIUCDWgAAMyRu.jpeg?alt=media&amp;token=7ed164c6-4d87-4aa1-8197-5bf1d738c52a" alt=""><figcaption></figcaption></figure>

Market strength continued. My excitement built.&#x20;

At the end of 2021, I left Meta to focus on crypto full-time. A truly impeccable example of market timing.

<figure><img src="https://4199652940-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F594XROWggjchM2lduPt1%2Fuploads%2FCF6i6JZw7TN7YmiwY18t%2FHLyIYbmWkAAeFPW.jpeg?alt=media&amp;token=0e30e4c0-8472-4251-9029-0587bc8058bb" alt=""><figcaption></figcaption></figure>

Brutal.

I did some contract work. Built some projects that went nowhere. Living was slim.

At the end of 2022, a [long-time friend](https://www.linkedin.com/in/ericolszewski/) said, "Hey, you need to try the card thing again". He was an ETH zealot, ran the Austin Ethereum Meetup, and he was right.

Laso eventually launched to the public in March of 2023. There was a single card option, no withdrawals, and Apple Pay + Google Pay codes had to be delivered by asking for them on Telegram.

Nonetheless, growth was rapid.

<figure><img src="https://4199652940-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F594XROWggjchM2lduPt1%2Fuploads%2Fx8yD1kyhlDEL0KVz4CCh%2FHLyIdTlW4AA3zBS.png?alt=media&amp;token=f6234001-e274-449d-b9e0-14e289256321" alt=""><figcaption></figcaption></figure>

There were quite a few bumps along the way, but today, Laso Finance serves thousands of users across the world through [prepaid cards](https://www.laso.finance/), [gift cards](https://www.laso.finance/gift-cards), and [bank transfers to debit cards](https://www.laso.finance/push-to-card).

## But, Why?

This snippet from our [ICO Announcement X Article](https://x.com/LasoFinance/status/2069118136859656377) says it best:

> In a time of growing oversight and monitoring, we **need** privacy at the point of spend.&#x20;
>
> Today, we earn and store assets onchain. Ideally, we spend them at businesses that accept crypto. That group of businesses is growing, but still [very small](https://capitaloneshopping.com/research/retailers-that-accept-cryptocurrency).&#x20;
>
> Instead, we send assets to a bank-like entity (an exchange) and use a card they've issued. Or worse, sell those assets to USD, transfer to our bank account, and pay off a credit card.
>
> It's not a better system. It's fiat banking with extra steps.
>
> More importantly, we've lost a crucial part of the purpose for cryptocurrencies. The **right to privacy**.&#x20;
>
> Private spending is essential to the success of our industry.

The knee-jerk reaction for some is that privacy is only necessary for criminals, but that is not the case. Without privacy, your doxxed funds onchain are subject to the same risk of seizure or robbery as they are in a bank account.

You can say that you ["lost your keys in a boating accident"](https://www.reddit.com/r/Bitcoin/comments/qj74ug/the_boating_accident_how_does_this_help_in_any/), but once those funds move, the jig is up.

Instead, Laso allows you to maintain that privacy onchain, the same that you get in the normal banking system.

Imagine if everyone you know could see how much you were paying on your credit cards? Or could see when you stopped paying your bill. It's inconceivable, but it's how the crypto ecosystem works without Laso.

It's not just a theoretical, far away concern. Privacy through Laso has an immediate, important impact for our users. That shows through usage and through a committed, helpful community.&#x20;

When one of our most prolific supporters was asked in the public group discussion why he helps so often, he replied:

<figure><img src="https://4199652940-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F594XROWggjchM2lduPt1%2Fuploads%2FbJ8jYTorESuJUwOVZ9z7%2FHLyIsKpXgAAmRlH.png?alt=media&amp;token=9e2fba56-65c9-4257-8aa1-a8cbe6e60a44" alt=""><figcaption></figcaption></figure>

Privacy is needed, and we can deliver it.

At a higher level, it's akin to [the importance of decentralization](https://medium.com/@VitalikButerin/the-meaning-of-decentralization-a0c92b76a274).&#x20;

The crypto industry could in a sense, operate without decentralization, but it introduces fragility. Prosecution of miners would significantly degrade the network. More importantly, that fragility introduces risk that prevents additional financial and labor resources from pouring into the ecosystem.

Luckily, decentralization is largely solved, which has allowed the surge in value for the industry. Privacy is the next unlock.

Private onchain-powered spending on fiat rails is a worthy goal for the future. Join us to build it.

{% hint style="info" %}
For the "why?" on agentic commerce, read [Agentic Entrepreneurship](/roadmap/agentic-entrepreneurship.md).
{% endhint %}