Payy Privacy Ethereum L2 Network Launch

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.

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.