TLDR
- Payy’s L2 auto-routes ERC-20 transfers through private pools without smart contract changes
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Users can access privacy features through MetaMask and EVM wallets
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Institutions and fintechs are target users for privacy-preserving capital movement
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The network supports stablecoin transfers and has signed unnamed launch partners
Payy has introduced a new Ethereum Layer-2 network that allows private token transfers without changing existing wallet infrastructure. The network enables users to conduct ERC-20 transfers via privacy pools by default when connected through Ethereum Virtual Machine (EVM)-compatible wallets like MetaMask.
The company confirmed that the privacy routing occurs automatically, meaning users do not need to switch wallets or interact with separate smart contracts. Payy stated that no special configurations are required to access these features, making it easier for both institutions and individual users to send funds privately.
The project aims to reduce public visibility of transaction counterparties, a growing concern among financial entities exploring blockchain use cases. Payy emphasized that its solution does not compromise Ethereum compatibility and maintains functionality across existing token standards.
Institutional Use and Stablecoin Focus
Payy’s new L2 is designed for financial institutions and fintech firms that want to move capital onchain while maintaining transaction privacy. The company said it is working with stablecoin issuers as launch partners, though specific names have not yet been disclosed.
CEO Sid Gandhi explained that traditional finance firms often avoid blockchain due to the exposure of financial data.
“They cannot move real capital flows onchain if their financial data is exposed to the world,” he said in a post on X.
The network allows ERC-20 transfers to be routed through private pools and then withdrawn to new wallet addresses when interacting with decentralized applications. This approach protects sender and receiver identities without altering standard Ethereum wallet workflows.
Enhanced Wallet Compatibility and Privacy Routing
The Payy network supports all EVM wallets and does not require the use of custom tokens or specialized infrastructure. Once connected, users can transact privately without navigating between different protocols or interfaces.
The core technical feature is automatic routing of transfers through private ERC-20 pools. These privacy pools obscure transaction details from public blockchain viewers while preserving compatibility with smart contracts and dApps.
Payy aims to address the complexity often linked to using privacy solutions, such as managing multiple wallets or operating bridges between protocols. Its L2 solution is positioned as an accessible option for mainstream and enterprise adoption.
Growing Focus on Onchain Privacy
The privacy-focused launch comes amid broader moves in the Ethereum ecosystem toward enhanced transaction privacy. Developers are already working on wallet privacy upgrades under the Kohaku roadmap, which includes features like private sending and receiving.
Projects such as Aztec Network and Railgun also offer Ethereum-based privacy solutions. However, Payy’s offering differs by removing the need for separate wallets or token formats. The network supports seamless integration with existing systems and allows users to retain their preferred tools.
Since mid-2025, Payy has operated a crypto wallet and payment card. The company says it has reached around 100,000 users. With its L2 launch, Payy seeks to become a key privacy infrastructure provider for onchain stablecoin and token transfers.
