Crypto startup Payy has launched an Ethereum layer-2 network built to enable private ERC-20 transfers by default. The network can be added as a custom chain in MetaMask and other EVM wallets, and Payy says ERC-20 transfers on the chain are routed through privacy pools automatically, with “no smart contract changes required.”
Payy positions two core user groups for the network: institutions and fintechs that want to move real financial flows onchain while keeping transaction details private, and crypto users who want privacy tools without managing multiple wallets. The project says it has signed undisclosed launch partners among stablecoin issuers, which it plans to name in the coming weeks.
The layer-2 is compatible with any EVM wallet and — according to Payy’s website — is primarily targeted at enabling private stablecoin transfers, while supporting all ERC-20 tokens. Payy’s CEO, Sid Gandhi, said the product is aimed at helping traditional finance firms feel comfortable moving capital onchain because many banks and enterprises will not move real capital if financial data is publicly exposed.
On Payy’s network, private ERC-20 pools route users’ transactions when they use wallets like MetaMask. This lets users move funds from their usual wallet addresses without publicly exposing counterparties on the network. When interacting with DeFi applications and smart contracts, funds are withdrawn from the private pools to a new address to engage with onchain contracts.
Before launching the layer-2, Payy offered a privacy-focused wallet and a crypto banking card that debuted in mid-2025; the project says it has reached roughly 100,000 users since then. Payy aims to differentiate itself by reducing the operational complexity of using privacy tools — for example, by removing the need to juggle multiple wallets or switch between protocols.
Other projects and protocols also provide privacy on Ethereum, including Aztec Network and Railgun. The crypto privacy sector more broadly grew in 2025, with interest in privacy-focused tokens such as Zcash and Monero rising that year.
Separately, Ethereum developers have been working on wallet privacy improvements under the Kohaku roadmap, which seeks to reduce reliance on centralized transaction trackers and add features like private sending and receiving.
