Crypto undertaking Payy, which operates a privacy-focused pockets alongside a crypto banking card, has simply launched a privacy-enabled Ethereum layer 2.
In an announcement by way of X on Wednesday, Payy stated customers can now combine the community into their MetaMask accounts, and that each one ERC-20 transfers made on it are mechanically made non-public with “no sensible contract adjustments required.”
Payy stated the 2 core kinds of customers on its community can be establishments and fintech corporations trying to convey “flows onchain with out concern of research and exploitation,” and crypto natives trying to make use of privateness instruments with out “juggling a number of wallets.”
“Among the largest stablecoin gamers are day 1 launch companions on Payy Community. We’ll be asserting them within the coming weeks,” Payy stated.
The community is appropriate with any Ethereum Digital Machine (EVM) pockets, and the undertaking’s web site signifies that the layer-2 is primarily geared towards “making stablecoins non-public,” regardless of additionally supporting all ERC-20 tokens.
Following the announcement, Payy CEO Sid Gandhi additionally shared extra particulars on X, noting that Payy is working to assist massive conventional finance establishments really feel extra snug shifting capital onchain.
“Practically each financial institution, fintech, and enterprise is telling us the identical factor: They can not transfer actual capital flows onchain if their monetary information is uncovered to the world,” he stated.
By way of Payy’s privateness, the layer 2 hosts non-public ERC-20 swimming pools that customers’ transactions are mechanically routed via when utilizing wallets like MetaMask. This allows customers to maneuver funds from their regular wallets with out the skin world seeing the place the funds are going.
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When interacting with decentralized finance apps and sensible contracts, funds are withdrawn from the non-public swimming pools to a brand new deal with.
Earlier than this, Payy primarily supplied its personal privacy-focused pockets alongside a crypto banking card, which launched in mid-2025. The undertaking claims to have racked up 100,000 customers of its pockets providers.
There are already different L2s and protocols providing privateness providers on Ethereum, comparable to Aztec Community and Railgun, which use comparable strategies to hide switch exercise.
In the meantime, there are a bunch of privacy-focused tokens comparable to Zcash (ZEC) and Monero (XMR) that exploded in recognition in 2025 amid a crypto privateness sector growth final yr.
In response to Payy, it goals to supply some extent of distinction by lowering the hurdles to sustaining privateness, comparable to managing a number of wallets or switching between a number of protocols.
Nonetheless, Payy is just not the one one engaged on this. Cointelegraph reported in October that Ethereum builders have been engaged on upgrading pockets privateness as a part of the Kohaku roadmap.
The purpose of Kohaku is to cut back reliance on centralized events that observe transactions, whereas additionally together with options comparable to non-public sending and receiving.
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