The Crypto Payy project, which operates a privacy-focused wallet alongside a crypto banking card, has launched an Ethereum Layer 2 network designed to support private ERC-20 transfers.
In an announcement via X on Wednesday, Payy he said users can add the network as a custom chain in MetaMask, and ERC-20 transfers made on that network are routed through privacy pools by default “without requiring changes to the smart contracts.”
Payy said the two main types of users on its network will be institutions and fintech companies that want to ensure on-chain financial flows while limiting the traceability of public transactions, and cryptocurrency users who want to operate privacy tools without “juggling multiple wallets.”
Payy said it has signed contracts with undisclosed launch partners among stablecoin issuers that it plans to name in the coming weeks.
The network is compatible with any Ethereum Virtual Machine (EVM) wallet and the project’s website indicates that Layer 2 is primarily focused on enabling private stablecoin transfers on its network, 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 lend a hand immense 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.
Payy explained that at Layer 2 there are private ERC-20 pools through which user transactions are automatically routed when using wallets like MetaMask. This allows users to transfer funds from their regular wallets without publicly disclosing the transaction counterparties on the Payy network.
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When interacting with decentralized finance applications and sharp contracts, funds are withdrawn from private pools to a modern address.
Previously, Payy primarily offered its own privacy-focused wallet and cryptocurrency banking card, which launched in mid-2025. Since then, the project has reached approximately 100,000 users.
There are already other L2s and protocols offering privacy services on Ethereum, such as Aztec Network and Railgun.
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 cryptocurrency privacy boom.
According to Payy, this aims to provide a difference by reducing the operational complexity of using privacy tools such as managing multiple wallets or switching between 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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