Payy Rolls Out Privacy-Focused ETH L2 With MetaMask Support
Payy, a company that makes crypto wallets, has officially a privacy-enabled Layer-2 network on ETH. This is a large step toward making privacy a part of ETH’s ecosystem. The new chain claims to be the first EVM-compliant L2 to automatically protect the privacy of ERC-20 transfers.
This addresses long-standing concerns about on-chain transparency while still being compatible with popular wallets. Payy’s official X account the news on February 4, 2026. This is an enhancement of the company’s current services, which already include a privacy-focused wallet and a crypto banking card.
Automatic Privacy for Transfers of ERC-20
Layer-2 has a chain-native privacy mechanism at its heart that keeps token movements secret without any user action. The project says the network has private ERC-20 pools that automatically route all payments when users connect with compatible wallets.
“ERC-20 transfers are private by default,” Payy said in its debut announcement. The approach ensures that “no smart contract changes [are] required,” so developers and consumers can keep their current infrastructure while still receiving privacy protections.
Reports that private transaction data is kept in a privacy vault that is not on the blockchain. Tokens are removed from the privacy pool and sent to a new address for smart contract interactions. This keeps the information private. Through the network’s RPC URL, developers can set up and ask about the privacy vault’s settings.
Seamless MetaMask Integration
The fact that the network works with and other EVM-compatible wallets is one of its best features. Users can add Payy as a special chain in MetaMask. later than that, transfers are immediately private, so there is no need to set up anything further, get new wallets, or do anything complicated.
This plug-and-play method is aimed at both retail consumers and institutional actors who want to keep their on-chain behavior private.
Payy has said that Layer-2 solves the “transparency bottleneck” for people in traditional finance (TradFi), letting banks and fintech companies settle transactions on-chain without showing the public their full ledgers. Reports on the debut say that the network uses zero-knowledge proofs to protect privacy. This lets people check transactions without giving out private information.
Launch Partners and largeger Goals
Payy said it is already working with launch partners, including stablecoin issuers, but did not name any, saying they would be made public later. The move shows that institutions are interested in the privacy-focused chain from the outset.
As public ledger comes under increasing scrutiny, especially from groups that need privacy, the debut of Payy Network comes at a time of rising demand for privacy answers built into the system.
ETH is designed to be open, but Layer-2 innovations like this one try to offer optional or default privacy without losing composability or . Payy calls its L2 “ETH’s first and only privacy-enabled, EVM L2,” indicating it aims to set a new standard for private transactions on the world’s most popular smart contract platform.
People in the industry say this development could attract consumers and businesses that are hesitant to adopt on-chain visibility, especially as regulatory pressures and competitive analysis become more significant in blockchain adoption.
Payy’s method will only become popular if it works well, partners sign up, and it can keep strong privacy guarantees even as come under more scrutiny.
