Crypto project Payy, known for its privacy-focused wallet and crypto banking card, has launched a privacy-enabled Ethereum Layer 2.
In a Wednesday announcement on X, Payy said users can now add the network to their MetaMask accounts, with all ERC-20 transfers automatically made private—“no smart contract changes required.”
Payy highlighted two primary user groups for the network: institutions and fintech firms aiming to move funds on-chain without risk of analysis or exploitation, and crypto-native users seeking privacy tools without managing multiple wallets.
“Some of the largest stablecoin players are day-one launch partners on Payy Network. We’ll be announcing them in the coming weeks,” the company said.
The network is compatible with any Ethereum Virtual Machine (EVM) wallet, and according to Payy’s website, the Layer 2 is designed primarily to make stablecoins private, while also supporting all ERC-20 tokens.
Following the launch, Payy CEO Sid Gandhi shared additional details on X, emphasizing the company’s focus on helping traditional finance institutions move capital on-chain with greater confidence.
“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,” Gandhi said.
Payy’s Layer 2 implements privacy through private ERC-20 pools. Transactions are automatically routed through these pools when users interact via wallets like MetaMask, allowing funds to move without revealing their origin or destination. When engaging with decentralized finance apps or smart contracts, funds are withdrawn from the private pools to a new address to maintain privacy.
Before this, Payy primarily offered its own privacy-focused wallet and a crypto banking card, launched in mid-2025, which the project says has attracted 100,000 users.
Other Ethereum Layer 2s and protocols, such as Aztec Network and Railgun, already provide similar privacy services, while privacy-focused tokens like Zcash and Monero saw a surge in popularity in 2025 amid a broader crypto privacy boom.
Payy aims to differentiate itself by lowering the barriers to privacy, removing the need to manage multiple wallets or switch between protocols. However, it is not alone in the space—Ethereum developers are also advancing wallet privacy through the Kohaku roadmap, which aims to reduce reliance on centralized transaction trackers while enabling features like private sending and receiving.
