Crypto project Payy has rolled out a new Ethereum layer-2 network aimed at enabling private ERC-20 token transfers, as institutions and fintech firms increasingly push to move financial activity onchain without exposing sensitive data.
Announced on X on Wednesday, the Payy Network allows users to add the chain directly to MetaMask and other EVM-compatible wallets. By default, ERC-20 transfers on the network are routed through privacy pools, removing the need for smart contract changes or separate privacy tools.
— Payy (@payy_link) February 4, 2026
Built for institutions and crypto natives
Payy says the network is designed for two main audiences: traditional financial institutions and fintech companies looking to settle real capital flows onchain without full public traceability, and crypto-native users who want privacy without managing multiple wallets or protocols.
According to Payy, transactions are automatically routed through private ERC-20 pools, allowing users to send funds from standard wallets while masking transaction counterparties on the public ledger. When users interact with DeFi applications or smart contracts, funds are withdrawn from the privacy pools to newly generated addresses.
While the layer-2 supports all ERC-20 tokens, Payy’s website indicates the primary focus is private stablecoin transfers. The company also said it has signed undisclosed launch partners among stablecoin issuers, with official announcements expected in the coming weeks.
Payy CEO Sid Gandhi said the project is responding to direct feedback from traditional finance players hesitant to move onchain.
Competing in a growing privacy landscape
The launch marks a major expansion beyond Payy’s original offerings, which included a privacy-focused wallet and a crypto banking card introduced in mid-2025. The company claims to have onboarded around 100,000 users since then.
Payy enters an increasingly competitive privacy space. Ethereum-based privacy solutions such as Aztec Network and Railgun already offer similar functionality. At the same time, privacy-centric cryptocurrencies like Zcash and Monero surged in popularity during a broader privacy boom in 2025.
Ethereum developers are also exploring native privacy improvements. In October, it was reported that wallet-level privacy features were being considered as part of Ethereum’s Kohaku roadmap, which aims to reduce reliance on centralized transaction trackers and enable private sending and receiving by default.
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