Crypto wallet provider Payy has introduced a new privacy-focused Ethereum layer 2 designed to make ERC-20 transfers private by default. The launch reflects growing demand from institutions and everyday crypto users seeking onchain privacy without adding technical complexity.
Privacy by Default on Ethereum
Payy’s layer 2 integrates directly with existing Ethereum Virtual Machine compatible wallets, including MetaMask. Users can route transactions through the network without deploying new smart contracts, switching wallets, or using custom tokens. Every ERC-20 transfer on the network is automatically shielded from public transaction analysis.
In an announcement via X on Wednesday Payy said;
Although the network supports all ERC-20 tokens, Payy positions stablecoins as its primary use case. The project aims to make stablecoin payments and transfers usable for real-world financial flows while protecting sensitive transaction data.
Institutional and Fintech Demand Driving Adoption
According to Payy, banks, fintech firms, and enterprises have expressed concern about moving capital onchain due to the transparency of public blockchains. The new layer 2 is designed to allow these entities to transact without exposing counterparties, balances, or transaction paths.
How the Privacy Layer Works
Transactions are routed through private ERC-20 pools, obscuring sender and recipient details. When users interact with decentralized applications, funds exit the pools to newly generated addresses, adding another layer of privacy.
Payy enters a space already occupied by privacy-focused Ethereum solutions, but it aims to stand out by minimizing user friction and simplifying access to onchain privacy for both institutions and crypto-native users.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.