Key Points
- Payy launched a privacy-focused Ethereum Layer-2 supporting private ERC-20 transfers.
- The network targets institutions, fintech firms, and users seeking simplified onchain privacy.
Payy, a crypto wallet provider, has expanded its services by launching a new Ethereum Layer-2 network designed for private token transfers.
The company announced the development on X on February 4, noting that it is already working with launch partners, including stablecoin issuers, whose names will be disclosed later.
Focus on Privacy and Institutional Use
Payy operates a privacy-oriented wallet alongside a crypto-linked banking card, and the new Layer-2 extends this product suite.
Users can add the network as a custom chain in MetaMask, with all ERC-20 transfers routed through privacy pools by default and without requiring smart contract changes.
According to the company, the network is intended primarily for institutions and fintech firms seeking to move financial activity onchain while limiting public transaction visibility.
The protocol is also available to crypto-native users who want access to privacy tools without managing multiple wallets or complex setups.
Payy’s chief executive stated that the project aims to reduce friction faced by Traditional Finance institutions attempting to transfer large capital flows onchain securely.
He emphasized that public exposure of sensitive financial data has been a key barrier to broader institutional participation in blockchain networks.
Network Compatibility and Market Context
The Layer-2 network is designed to be compatible with all Ethereum Virtual Machine wallets, supporting private stablecoin and general ERC-20 transfers.
Several unnamed launch partners, including stablecoin issuers, are expected to be revealed in the coming weeks as the rollout progresses.
The launch comes as other Ethereum Layer-2 networks refine their long-term strategies, with some focusing on real-world infrastructure and regulated financial participants.
These efforts across the ecosystem aim to address privacy, compliance, and control challenges that have slowed institutional adoption of cryptocurrencies.
