Crypto startup Payy has launched a new Ethereum layer-2 designed to make ERC-20 transfers private by default. The network can be added as a custom chain in MetaMask and other EVM-compatible wallets, and Payy says token transfers on the chain are automatically routed through privacy pools with no smart contract changes required.
Payy identifies two primary user groups for the L2: institutions and fintechs that need to move real financial flows onchain while keeping transaction details confidential, and everyday crypto users who want privacy without managing multiple wallets. The company says it has signed undisclosed launch partners from the stablecoin issuer space and plans to disclose those partners in the coming weeks.
The layer-2 works with any EVM wallet and is primarily aimed at enabling private stablecoin transfers while supporting all ERC-20 tokens. Payy’s CEO Sid Gandhi says the product is intended to help traditional finance firms feel comfortable moving capital onchain, noting many banks and enterprises are reluctant to transact if financial data is publicly exposed.
On Payy’s network, private ERC-20 pools automatically route users’ transactions when they use wallets like MetaMask. This approach lets users send funds from their usual wallet addresses without publicly revealing counterparties. When users interact with DeFi dapps or smart contracts, funds are withdrawn from the private pools to a fresh address to perform onchain contract operations, preserving privacy during contract interaction.
Before launching the L2, Payy offered a privacy-focused wallet and a crypto banking card that debuted in mid-2025; the team says those products attracted roughly 100,000 users. Payy positions its network as lowering the operational friction of privacy tools — removing the need to juggle multiple wallets or switch between different privacy protocols.
Payy joins other projects working on privacy for Ethereum, including Aztec Network and Railgun. The crypto privacy sector expanded in 2025, with renewed interest in privacy-focused coins such as Zcash and Monero.
Separately, Ethereum developers are advancing wallet privacy under the Kohaku roadmap, which aims to reduce dependence on centralized transaction trackers and add wallet-native features like private sending and receiving. Payy’s L2 aims to offer a complementary option by integrating privacy at the network level for ERC-20 transfers.