TLDR
- Payy raised $6 million in a seed round led by FirstMark Capital
- The firm uses zero-knowledge proofs to enable private stablecoin payments
- Payy offers a wallet and Visa card for USDC transactions globally
- The startup serves 100,000 users across 120 countries
- Payy plans a Layer 2 network with testnet launch expected next month
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Payy raised $6 million in a seed round led by FirstMark Capital. Robot Ventures and DBA Crypto also joined the round. The funding closed in December through a SAFE agreement with token warrants.
The company has now raised a total of $8 million. This includes a $2 million pre-seed round under its former name, Polybase. The startup did not disclose its valuation.
Payy focuses on stablecoin payments with built-in privacy. It uses zero-knowledge technology to protect transaction data. This approach aims to address transparency concerns on public blockchains.
CEO Sid Gandhi said privacy remains a key barrier for adoption. He noted that public stablecoin transfers expose sensitive financial details. He added that many enterprises avoid blockchain payments due to this issue.
Shift from Polybase to stablecoin infrastructure
Payy started as Polybase, a web3 database project. The company shifted direction in 2023 after reviewing its technology use. It saw a stronger opportunity in private payments.
The team adapted its zero-knowledge tools for financial transactions. This change allowed Payy to focus on stablecoin infrastructure. The goal is to make payments more secure and practical for businesses.
The company launched its wallet in January 2024. It later introduced a Visa card in August 2025. The card allows users to spend USDC at any merchant that accepts Visa.
Payy also announced its Layer 2 network recently. This network will run on Ethereum and use rollup technology. It will hide sender, receiver, and transaction amounts by default.
Growth plans and enterprise adoption strategy
Payy reports more than 100,000 users across 120 countries. It processes about $130 million in annualized transaction volume. The company earns revenue from fees and enterprise contracts.
The startup is now focusing on enterprise clients. These include fintech firms and financial institutions. The aim is to support large-scale stablecoin payments with privacy features.
Gandhi said several partners are already testing the platform. He stated that design partners are working on the upcoming testnet. These partners are exploring private payment use cases.
The testnet is expected to launch next month. A mainnet rollout is planned for the summer. Payy also plans to introduce a native token, though no timeline was shared.
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Kelvin Munene
Kelvin Munene is a crypto and finance journalist with over 5 years of experience in market analysis and expert commentary. He holds a Bachelor’s degree in Journalism and Actuarial Science from Mount Kenya University and is known for meticulous research in cryptocurrency, blockchain, and financial markets. His work has been featured in top publications including Coingape, Cryptobasic, MetaNews, Coinedition, and Analytics Insight. Kelvin specializes in uncovering emerging crypto trends and delivering data-driven analyses to help readers make informed decisions. Outside of work, he enjoys chess, traveling, and exploring new adventures.
