Payy, a New York-based privacy-first EVM-compatible Layer 2 blockchain optimized for stablecoins, has raised $6M in seed funding led by FirstMark Capital. The network provides native privacy for all ERC-20 transfers, zero fees on stablecoin transactions, and tools like a wallet and Visa card. The capital will support mainnet launch in summer 2026 and team expansion.
Stablecoin Surge Fuels Privacy Bets
The raise arrives as the stablecoin market hits $300B in 2026, projected to reach $1T by late 2026 per Kavout. Peers like Bleap raised a matching $6M seed in January 2026 for onchain stablecoin fintech. Codex secured $15.8M for compliant privacy stablecoin payments. Payy's ZK focus targets the transparency barrier holding back institutional adoption.
Onchain Visibility Exposes Financial Data
Stablecoin transfers reveal sender, receiver, and amounts forever on public ledgers, akin to posting bank statements online. This deters businesses and consumers from mainstream use, especially for salaries, payroll, or high-value payments. Current solutions like mixers add friction and regulatory risk. Payy addresses this with default privacy for every ERC-20 transfer.
ZK Precompiles Enable Seamless Privacy
Payy Network uses native ZK precompiles and privacy pools for all ERC-20s, including USDC, without wallet or contract changes. It achieves 300ms block times and up to 100k TPS potential while staying EVM-compatible. Unlike Aztec Network or Railgun, which focus on specific privacy layers, Payy makes privacy default across stables. The live Payy Wallet and Card already process $130M annualized volume from 100k+ users in 120 countries.
As Payy co-founder and CEO Sid Gandhi noted:
"Today, sending a stablecoin payment is like posting your bank statement on a public website."
FirstMark Validates Enterprise Privacy Play
FirstMark Capital, known for Pinterest and Shopify IPOs, led the round with partners like Robot Ventures and DBA. FirstMark's fintech and crypto bets, including Ledger, signal Payy as infrastructure for enterprise stablecoin flows. DBA's stablecoin thesis and Robot's ZK expertise add specialized conviction. Total funding now reaches $8M including prior pre-seed.
Institutions Target $2Q TradFi Payments
Payy eyes the $2 quadrillion TradFi payments market by enabling private onchain rails for institutions in 100+ countries. Regulatory tailwinds like the GENIUS Act proposals in March 2026 ease stablecoin paths per Federal Register. Competitors like Codex advance compliant payments, but Payy's zero-fee stables and card integration differentiate for spending.
Ex-Apple Engineer Leads Privacy Charge
CEO Sid Gandhi, ex-Apple tech lead on privacy for Maps and Siri, pairs with CTO Calum Moore, a YC W20 alum and serial founder of infra tools like Snapboard. Gandhi's safety-critical PM experience at Cruise and Navy software complements Moore's blockchain database pivot from Polybase. This duo raised $2M pre-seed in 2023 before pivoting to stablecoins.
Mainnet and Hiring Accelerate Growth
With private testnet live and 10M+ total transactions, Payy plans mainnet for summer 2026. The team of 12 in New York seeks Head of Business Development and engineers. 12 design partners eye billions in flows, building on $130M wallet volume.