Payy has launched a privacy-enabled EVM Layer 2 network on Ethereum. The new network adds transaction privacy while remaining compatible with existing Ethereum tools. It supports private ERC-20 token transfers without requiring changes to smart contracts.
Privacy Features of the Payy Layer 2 Network
The Payy network routes token transfers through privacy pools by default. This setup hides transaction counterparties on the Layer 2. Users can connect through standard wallets, including MetaMask, by adding the network as a custom chain.
The network supports all ERC-20 tokens. Stablecoin transfers are a primary focus. Payy confirmed that stablecoin issuers are participating as early partners. The company said partner details will be announced later.
Target Users and Use Cases
Payy designed the Layer 2 network for institutions, fintech companies, and crypto users seeking onchain privacy. The system allows capital movement without publicly exposing transaction flows. It also removes the need to manage separate wallets for privacy tools.
When funds interact with decentralized finance applications, assets exit privacy pools and move to newly generated addresses. This process helps maintain privacy while enabling contract interactions on Ethereum.
Payy Product Background and Expansion
Before launching the Layer 2 network, Payy released a privacy-focused wallet and a crypto payment card. The card launched in mid-2025. The company reported approximately 100,000 users at that time.
Payy CEO Sid Gandhi stated that the new network supports traditional finance adoption of blockchain technology. The goal is to reduce exposure of sensitive financial data during onchain transactions.
Ethereum privacy solutions such as Aztec Network and Railgun already exist. Payy’s Layer 2 adds an alternative approach by combining EVM compatibility with default privacy routing. The launch expands Payy’s privacy ecosystem across wallets, payments, and blockchain infrastructure.
Source: https://cointelegraph.com/news/privacy-enabled-evm-l2-payy-launches-ethereum
