Payy, a cryptocurrency project known for its privacy-centric wallet and banking card, has officially launched a layer-2 network on the Ethereum blockchain. This innovative network aims to facilitate private ERC-20 transfers, significantly enhancing user privacy in the crypto space.
In a recent announcement made via X, Payy confirmed that users can easily integrate this new network as a custom chain within their MetaMask wallets. Transfers conducted on the Payy network are automatically routed through privacy pools, ensuring that users do not need to alter their smart contracts for enhanced confidentiality.
Payy targets two primary user groups: institutional and fintech firms looking to conduct financial transactions on-chain while minimizing public transaction traceability, and crypto enthusiasts desiring the convenience of privacy tools without managing multiple wallets. The project has also revealed that it has partnered with undisclosed stablecoin issuers, with plans to unveil these partners in the upcoming weeks.
The layer-2 network is compatible with any Ethereum Virtual Machine (EVM) wallet, primarily focusing on facilitating private stablecoin transfers while also accommodating all ERC-20 tokens. Following the launch, Payy”s CEO, Sid Gandhi, elaborated on the network”s purpose, emphasizing its potential to ease concerns for traditional financial institutions regarding on-chain capital movement.
Gandhi noted, “Nearly every bank, fintech, and enterprise is telling us the same thing: They cannot move real capital flows on-chain if their financial data is exposed to the world.” This illustrates the demand for enhanced privacy solutions in the blockchain realm.
The Payy network”s design allows user transactions to be routed through private ERC-20 pools, effectively shielding the transaction counterparties from public view on the Payy network. When engaging with decentralized finance (DeFi) applications or smart contracts, funds are withdrawn from these private pools to a new address, further bolstering privacy.
Previously, Payy focused on providing its privacy wallet and banking card, which debuted in mid-2025, amassing around 100,000 users since its inception. While other layer-2 solutions and protocols, such as Aztec Network and Railgun, also offer privacy features on Ethereum, Payy aims to distinguish itself by simplifying the user experience associated with privacy tools.
Moreover, the Ethereum development community is actively working on enhancing wallet privacy through the Kohaku roadmap, which aims to reduce dependence on centralized entities that monitor transactions. The Kohaku initiative is set to introduce features such as private sending and receiving of funds.
As the demand for privacy in cryptocurrency transactions grows, Payy”s entry into the market as the first privacy-enabled layer-2 solution on Ethereum could reshape how users engage with digital assets, ultimately fostering greater adoption of on-chain financial activities.
