Privacy-Focused Stablecoin Network Payy Raises $6M Seed Led by FirstMark

Payy, a startup building a privacy-focused stablecoin payment network, has raised $6 million in a seed funding round. The round was led by FirstMark Capital, an early backer of Airbnb, Shopify, and Pinterest, with participation from Robot Ventures and DBA Crypto. The investment marks a significant milestone for the company as it seeks to address what its founders see as a critical limitation in the stablecoin ecosystem: the lack of transaction privacy .

From Polybase to Payy: A Strategic Pivot

Payy was originally founded as Polybase, a Web3 database project, before pivoting to stablecoin payments in 2023. Co-founder and CEO Sid Gandhi explained that the shift was driven by the realization that the zero-knowledge technology built for the database could solve a key problem in stablecoins. “Today, sending a stablecoin payment is like posting your bank statement on a public website. Every amount, every recipient, every balance, visible to anyone,” Gandhi said. “Enterprises will never move meaningful payment flows onchain if every transaction is visible to the world.”

The seed round closed in December 2024 and was structured as a simple agreement for future equity (SAFE) with token warrants. The startup’s valuation was not disclosed. This round brings Payy’s total funding to $8 million, including a $2 million pre-seed round raised under its former identity, Polybase .

How Payy Works: Privacy by Default

Payy offers a suite of products designed to make stablecoin payments private by default. The company has developed:

Self-Custodial Wallet: Launched in January 2024, the Payy wallet allows users to hold and transact with USDC while keeping transaction details private. Unlike standard wallets that expose all activity on the blockchain, Payy uses zero-knowledge proofs to shield sensitive information .

Visa Card: Introduced in August 2025, the Payy Visa card enables users to spend USDC anywhere Visa is accepted, with the same privacy protections applied to onchain settlements. This bridges the gap between crypto assets and traditional merchant networks .

Payy Network: Announced last month, the Payy Network is an Ethereum Layer 2 rollup that uses zero-knowledge proofs to encrypt transaction details, including sender, receiver, and amounts. A testnet is expected to launch next month, with a mainnet rollout planned for summer 2026 .

Growth Metrics and User Adoption

Since launching its wallet in early 2024, Payy has achieved significant traction. The company claims its platform already serves over 100,000 users across 120 countries, with an annualized transaction volume of approximately $130 million. These figures suggest that the demand for privacy-preserving stablecoin payments is substantial, even as the product remains in its early stages .

Future Roadmap: Institutional Focus and Native Token

Going forward, Payy plans to expand beyond consumer-facing products and provide stablecoin payment solutions to financial institutions and fintech companies. The company aims to become a key infrastructure layer for businesses that want to integrate private stablecoin payments without building the technology themselves .

A native token is also in the works, though no timeline has been set for its launch. The token is expected to play a role in network governance and incentivizing participation within the Payy ecosystem .

The Privacy Challenge in Stablecoins

Payy’s focus addresses a growing concern in the stablecoin market. While stablecoins like USDC and USDT have seen explosive growth in transaction volume, the lack of privacy remains a barrier to enterprise adoption. Public blockchains make all transaction data visible, creating challenges for businesses that require confidentiality for commercial reasons or regulatory compliance .

By leveraging zero-knowledge proofs, Payy aims to offer the best of both worlds: the efficiency and programmability of blockchain payments with the privacy protections expected by traditional financial institutions. The backing of FirstMark Capital, known for its early investments in transformative tech companies, lends credibility to the startup’s vision .

What’s Next

With the testnet launch approaching, the coming months will be critical for Payy as it moves toward mainnet deployment. The company’s ability to attract institutional partners and demonstrate the scalability of its zero-knowledge infrastructure will determine whether it can capture a meaningful share of the growing stablecoin payment market .

Sources: Payy, FirstMark Capital, The Block.