The Crypto Payy project, which operates a privacy-focused wallet along with a crypto banking card, has just launched Layer 2 of Ethereum with privacy-enabled functionality.
In an announcement via X on Wednesday, Payy he said users can now integrate the network with their MetaMask accounts, and all ERC-20 transfers made on it automatically become private and “no smart contract changes are required.”
Payy said the two main types of users on its network will be institutions and fintech companies that want to ensure “on-chain flows without fear of analysis and exploitation” and cryptocurrency users who want to utilize privacy tools without “juggling multiple wallets.”
“Some of the biggest stablecoin players are Day 1 launch partners on the Payy Network. We will announce them in the coming weeks,” Payy said.
The network is compatible with any Ethereum Virtual Machine (EVM) wallet and the project’s website indicates that Layer 2 is primarily focused on “making stablecoins private” even though it also supports all ERC-20 tokens.
After the decision was announced, so did Payy CEO Sid Gandhi common more details on X, noting that Payy is working to facilitate huge established financial institutions feel more comfortable moving capital online.
“Almost every bank, fintech and enterprise tells us the same thing: they cannot move true capital flows on-chain if their financial data is exposed to the world,” he said.
When it comes to Payy’s privacy, Layer 2 hosts private ERC-20 pools through which user transactions are automatically routed when using wallets like MetaMask. This allows users to move funds from their regular wallets without the outside world having to see where the funds are going.
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When interacting with decentralized finance applications and sharp contracts, funds are withdrawn from private pools to a recent address.
Previously, Payy primarily provided its own privacy-focused wallet along with a crypto banking card that launched in mid-2025. The project claims to have amassed 100,000 users of its wallet services.
There are already other L2s and protocols offering privacy services on Ethereum, such as Aztec Network and Railgun, which utilize similar methods to hide transfer activity.
Meanwhile, there are a number of privacy-focused tokens such as Zcash (ZEC) and Monero (XMR), which exploded in popularity in 2025 with last year’s privacy boom.
According to Payy, it aims to make a difference by reducing obstacles to maintaining privacy, such as managing multiple wallets or switching between multiple protocols.
However, Payy is not the only company working on this. In October, Cointelegraph reported that Ethereum developers were working to improve wallet privacy as part of the Kohaku roadmap.
Kohaku’s goal is to reduce reliance on centralized transaction tracking sites while enabling features such as private sending and receiving.
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