Payy launches privacy-first Ethereum Layer 2 with MetaMask and stablecoin support
Payy has launched a privacy-enabled Ethereum Layer 2 that makes ERC-20 transfers private by default and works with existing EVM wallets such as MetaMask. The network routes transactions through private ERC-20 pools and uses off-chain Privacy Vaults; when users interact with DeFi or smart contracts, funds are withdrawn to freshly generated addresses to preserve privacy. Payy says the layer requires no changes to existing smart contracts, supports all ERC-20 tokens, and can be added to standard wallets without new tokens or wallets. The rollout leverages an existing user base of roughly 100,000 wallet users and includes planned integrations with major stablecoin partners and fintech institutions. Target users are banks, fintechs and privacy-conscious retail users who want on-chain payments without exposing flows to chain analysis. CEO Sid Gandhi framed privacy as essential for broader on-chain payments adoption. The launch comes amid renewed industry interest in privacy tools (e.g., Monero, Zcash) and ongoing Ethereum privacy work such as the Kohaku roadmap. Traders should watch for stablecoin flow migration onto Payy’s L2 and any partner announcements that could shift on-chain liquidity into the privacy layer, which may affect visibility of ERC-20 flows and short-term on-chain metrics.
Neutral
The launch is unlikely to directly move prices of major cryptocurrencies referenced (notably ETH) because Payy is an infrastructure/privacy layer for ERC-20 transfers rather than a token with market supply changes. Short-term market effects could be muted: improved privacy may reduce on-chain signal for traders (less transparent flow data), which can temporarily increase uncertainty and volatility for ERC-20 tokens whose flows migrate to Payy. If major stablecoin issuers integrate and substantial volume shifts to the L2, this could change liquidity patterns and on-chain metrics—affecting trade execution and spreads—but not necessarily price direction. Longer term, wider adoption by institutions and stablecoin partners could be bullish for on-chain payments infrastructure and demand for Ethereum settlement; however, that is an indirect effect on ETH and ERC-20 token prices and depends on adoption scale. Overall, immediate price impact is likely neutral, while market microstructure and on-chain transparency will be the main trading considerations.