TLDR

  • Payy’s Layer 2 network automatically directs ERC-20 transfers through private pools without requiring modifications to smart contracts.

  • The privacy features are accessible via MetaMask and other EVM-compatible wallets.

  • Financial institutions and fintech companies are the primary target audience for moving capital with privacy.

  • Stablecoin transfers are supported, and the network has secured undisclosed launch partners.

Payy has launched a new network that facilitates private token transfers without altering existing wallet setups. This network enables users to perform ERC-20 transfers through privacy pools by default when using Ethereum Virtual Machine (EVM)-compatible wallets such as MetaMask.

The company confirms that the privacy routing happens automatically, eliminating the need for users to change wallets or engage with separate smart contracts. Payy indicated that accessing these features requires no special setup, simplifying private fund transfers for institutions and individual users alike.

The initiative seeks to lessen the public exposure of transaction participants, a rising worry for financial organizations investigating blockchain applications. Payy stressed that its solution maintains full Ethereum compatibility and works with current token standards.

Institutional Use and Stablecoin Focus

Payy’s new Layer 2 is tailored for financial institutions and fintech firms looking to move capital onchain while preserving transaction confidentiality. The company mentioned it is collaborating with stablecoin issuers as launch partners, although specific names have not been revealed.

CEO Sid Gandhi noted that traditional finance companies frequently steer clear of blockchain technology because of financial data transparency.

“They cannot move real capital flows onchain if their financial data is exposed to the world,” he stated in a post on X.

The network facilitates the routing of ERC-20 transfers through private pools, with funds subsequently withdrawn to new wallet addresses during interactions with decentralized applications. This method safeguards the identities of senders and receivers without changing standard Ethereum wallet procedures.

Enhanced Wallet Compatibility and Privacy Routing

The Payy network is compatible with all EVM wallets and does not necessitate custom tokens or specialized infrastructure. After connecting, users can execute private transactions without switching between different protocols or interfaces.

A key technical aspect is the automatic routing of transfers via private ERC-20 pools. These pools hide transaction details from public blockchain observers while ensuring continued compatibility with smart contracts.

Payy intends to tackle the complexity commonly associated with privacy tools, such as handling multiple wallets or using bridges across protocols. Its Layer 2 solution is presented as a user-friendly option for widespread and corporate use.

Growing Focus on Onchain Privacy

This launch with a privacy emphasis occurs as the broader Ethereum ecosystem shifts towards improved transaction confidentiality. Developers are already progressing on wallet privacy enhancements under the Kohaku roadmap, which incorporates capabilities like private sending and receiving.

Other projects like Aztec Network and Railgun also provide privacy solutions on Ethereum. Payy’s approach, however, is distinct because it eliminates the requirement for separate wallets or token types. The network allows for smooth integration with current systems and lets users keep their preferred tools.

Payy has been running a cryptocurrency wallet and payment card since mid-2025. The firm reports it has acquired approximately 100,000 users. With the launch of its Layer 2 network, Payy aims to establish itself as a leading provider of privacy infrastructure for onchain stablecoin and token transfers.