Crypto challenge 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 every one ERC-20 transfers made on it are routinely made non-public with “no good contract adjustments required.”
Payy stated the 2 core varieties of customers on its community could be establishments and fintech companies trying to carry “flows onchain with out concern of research and exploitation,” and crypto natives wanting 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 challenge’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 comfy transferring capital onchain.
“Almost each financial institution, fintech, and enterprise is telling us the identical factor: They can’t transfer actual capital flows onchain if their monetary knowledge is uncovered to the world,” he stated.
When it comes to Payy’s privateness, the layer 2 hosts non-public ERC-20 swimming pools that customers’ transactions are routinely routed by way of when utilizing wallets like MetaMask. This allows customers to maneuver funds from their regular wallets with out the surface world seeing the place the funds are going.
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When interacting with decentralized finance apps and good contracts, funds are withdrawn from the non-public swimming pools to a brand new deal with.
Earlier than this, Payy primarily offered its personal privacy-focused pockets alongside a crypto banking card, which launched in mid-2025. The challenge claims to have racked up 100,000 customers of its pockets companies.
There are already different L2s and protocols providing privateness companies on Ethereum, comparable to Aztec Community and Railgun, which use related 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 reputation in 2025 amid a crypto privateness sector growth final 12 months.
In accordance with Payy, it goals to offer a degree 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 will not be the one one engaged on this. Cointelegraph reported in October that Ethereum builders had 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 monitor transactions, whereas additionally together with options comparable to non-public sending and receiving.
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