The Payy project, offering privacy-focused wallets and crypto bank cards, has launched a privacy-featured Ethereum layer 2 network. In the announcement made via X, it was stated that users can integrate the network into their MetaMask accounts compatible with ETH detailed analysis and that all ERC-20 transfers will be automatically made private without requiring smart contract changes. The network focuses on enabling institutions and fintech companies to manage their onchain flows without analysis and exploitation risks, and crypto users to use privacy tools without managing multiple wallets. Payy announced that it is the launch partner of the largest stablecoin providers and will announce them in the coming weeks. The network is compatible with every Ethereum Virtual Machine (EVM) wallet, primarily designed for stablecoin privacy, but supports all ERC-20 tokens.
Source: Payy
Payy Ethereum L2 Network Technical Features
Payy CEO Sid Gandhi emphasized that large traditional financial institutions cannot conduct onchain capital movements due to their financial data being public, stating that the project aims to overcome this barrier. Users can hide their fund flows by transacting through private ERC-20 pools in wallets like MetaMask; in DeFi and smart contracts, funds are pulled to new addresses. Technically, smart contracts integrated with zero-knowledge proofs (ZK) hide transfers while reducing gas fees by up to 90% compared to Ethereum mainnet. Payy previously offered wallet services reaching 100,000 users and card services launched in mid-2025.
ETH Market Data and Impact of Payy Launch
As of 2026-02-05, ETH price is at $2,088.44 level, 24-hour change -7.31%. RSI at 22.49 in oversold territory, trend downward. The Payy launch could increase long-term demand by adding a privacy layer to the ETH L2 ecosystem.
| Level | Price | Score | Distance |
|---|---|---|---|
| S1 Support | $2,061.96 | 80/100 (Strong) | -1.26% |
| S2 Support | $1,930.45 | 53/100 (Medium) | -7.56% |
| R1 Resistance | $2,150.20 | 67/100 (Strong) | +2.96% |
| R2 Resistance | $2,264.72 | 66/100 (Strong) | +8.45% |
Stablecoin Partnerships and Institutional Adoption
Payy announced launch partnerships with the largest stablecoin providers. This will enable private transfers of assets like Tether (USDT) and USDC, accelerating fintechs’ regulation-compliant onchain flows. Institutions will be able to manage capital movements while avoiding on-chain analysis tools.
Vitalik Buterin L2 Vision and Payy Connection
Ethereum founder Vitalik Buterin emphasized that the original vision for L2s was to bring new features rather than extreme scalability. Payy’s privacy-focused L2 aligns with this vision, complementing Ethereum’s wallet privacy efforts in the Kohaku roadmap.
Payy Competition Analysis: Aztec and Railgun Comparison
It competes with similar privacy solutions like Aztec Network and Railgun protocols, as well as Zcash (ZEC) and Monero (XMR) tokens. Payy stands out with EVM compatibility and ETH futures trading integration. While Aztec is ZK-rollup based, Payy provides broader access with ERC-20 pools. In the future, it could capture 20% of ETH L2 traffic in a privacy-focused manner.
Source: https://en.coinotag.com/payy-privacy-ethereum-l2-network-launch
