Payy’s Privacy Power Move: New Ethereum Layer-2 Targets Banks, Stablecoins, and Hidden Onchain Transfers

Crypto wallet provider Payy is making an aggressive push into Ethereum’s scaling wars—this time with privacy front and center.

The company announced on February 4 that it has officially launched its own Ethereum Layer-2 network, designed to support private ERC-20 transfers by default. The move marks a major expansion beyond Payy’s privacy-focused wallet and crypto banking card, positioning the startup squarely at the intersection of blockchain infrastructure and Traditional Finance.

While Payy confirmed it is already working with launch partners—including stablecoin issuers—the firm is keeping names under wraps for now, promising disclosures in the coming weeks.

Payy isn’t shy about who this network is for.

According to the company, institutions and fintech firms are the primary targets—especially those frustrated by how slow, exposed, and clunky it is to move serious money onchain.

“They cannot move real capital flows onchain if their financial data is exposed to the world,” said Payy CEO Sid Gandhi, pointing to a long-standing pain point for banks and large financial players.

In Payy’s view, public blockchains haven’t failed institutions because of technology—but because of transparency taken too far. Every transaction visible, traceable, and analyzable in real time has been a deal-breaker for firms handling sensitive financial flows.

The new L2 is Payy’s answer to that problem.

What makes Payy’s Layer-2 stand out is how aggressively it bakes in privacy—without adding friction.

That means users—whether institutions or crypto natives—don’t need to redesign their workflows, redeploy contracts, or juggle multiple wallets just to keep transactions discreet.

Payy says this design is meant to make privacy feel invisible, not complex—an especially important detail for TradFi players used to seamless internal systems.

Although the network supports all ERC-20 tokens, Payy’s own materials make one priority clear: private stablecoin transfers.

This focus aligns closely with institutional demand. Stablecoins are increasingly used for settlements, treasury operations, and cross-border payments—but their public traceability has been a major obstacle for banks and regulated firms.

Payy claims several stablecoin issuers are already onboard as launch partners, signaling that the network may be gearing up for real-world financial flows rather than experimental DeFi activity.

Payy’s launch comes as Ethereum’s Layer-2 ecosystem enters a new phase—one less obsessed with raw throughput and more focused on real-world adoption.

In mid-January, zkSync unveiled its 2026 roadmap, explicitly pivoting toward banks, asset managers, and regulated institutions. Its strategy centers on closing long-standing gaps around privacy, control, and compliance—the very issues that have slowed institutional crypto adoption.

The timing suggests a broader realization across the ecosystem: if crypto wants institutional capital at scale, privacy can’t be optional.

With its Layer-2 now live, Payy is betting that privacy-first infrastructure will become a baseline requirement—not a niche feature.

If the promised launch partners materialize and stablecoin issuers commit real volume, Payy’s network could quickly become a testing ground for how TradFi finally moves capital onchain—quietly.

For now, the message is clear: Ethereum’s next growth chapter may not be about speed alone, but about who gets to see the money move—and who doesn’t.