Payy launches Ethereum-based Layer 2 with enhanced privacy

Payy, which operates a crypto wallet and payment card, has launched an Ethereum Layer 2 (L2) network with strengthened privacy features.

According to Cointelegraph on the 5th (local time), Payy unveiled a privacy-focused L2 network that can anonymize all token transfers by default from existing Ethereum wallets, without requiring a separate new wallet or token.

Payy said that if users connect the network to existing Ethereum Virtual Machine (EVM)-compatible wallets such as MetaMask, privacy protection is applied automatically with no additional setup. It also emphasized that no smart contract changes are required.

The network is focused on reducing concerns over exposure of transaction details when financial institutions and fintech companies handle on-chain fund flows. Individual users can also use the privacy features without needing to switch among multiple wallets.

Payy in particular cited stablecoin transfers as a key use case. The project said that “from the initial launch, some major stablecoin-related companies are participating as partners,” adding that it plans to disclose details of future collaborations.

Payy CEO Sid Gandhi said, “Most banks and companies judge it difficult to move real fund flows on-chain in an environment where transaction data is public,” adding that “privacy is a key barrier preventing institutions from using blockchain.”

Through this L2, Payy aims to lower adoption barriers compared with existing privacy-focused blockchains and establish itself as privacy infrastructure that can be used even in regulated environments.