Payy has officially launched a new privacy-enabled Ethereum Layer-2 network designed to make ERC-20 token transfers private by default. The network automatically routes transactions through private pools, requiring no changes to existing smart contracts or user wallet infrastructure.
The core innovation lies in its seamless integration with popular Ethereum Virtual Machine (EVM) wallets like MetaMask. Users can connect their existing wallets and conduct transactions that are automatically and invisibly routed through Payy's private ERC-20 pools. This process obscures transaction details, such as counterparty identities and amounts, from public blockchain viewers. When users later interact with decentralized applications (dApps), funds are withdrawn to a newly generated address, further protecting privacy.
Payy is specifically targeting financial institutions and fintech companies as primary users. CEO Sid Gandhi stated that traditional finance has been hesitant to move "real capital flows onchain" due to fears of financial data exposure. The network aims to facilitate private, on-chain capital movement, with a particular focus on stablecoin transfers. Payy has signed unnamed "largest stablecoin players" as launch partners, with details to be announced in the coming weeks.
The launch taps into a growing demand for privacy tools within the Ethereum ecosystem. It arrives alongside other developments like the Ethereum Foundation's Kohaku roadmap for wallet-level privacy. Payy differentiates itself by offering this functionality without forcing users to adopt new wallets, manage fragmented liquidity, or handle complex bridging protocols. The project, which already operates a privacy-focused wallet and Visa-powered crypto card with roughly 100,000 users, will bootstrap its new L2 with this existing user base.
