Key Highlights
- FirstMark Capital led a $6 million seed investment in Payy
- The platform leverages zero-knowledge proof technology for confidential stablecoin transfers
- Payy provides a digital wallet and Visa-branded card for worldwide USDC spending
- The platform has attracted 100,000 users spanning 120 nations
- A Layer 2 blockchain network testnet is slated for release in the coming weeks
Privacy-focused payment infrastructure provider Payy has completed a $6 million seed financing round with FirstMark Capital serving as lead investor. Additional participation came from Robot Ventures and DBA Crypto. The investment closed last December via a simple agreement for future equity (SAFE) structure that includes token warrant provisions.
The recent capital injection brings Payy’s cumulative fundraising to $8 million. Previously, the company secured $2 million during its pre-seed stage while operating under the Polybase brand. Company representatives declined to reveal the current valuation.
The platform specializes in privacy-enhanced stablecoin payments through the implementation of zero-knowledge cryptographic techniques. This technology shields transaction information from public view. The solution targets the transparency challenges inherent in traditional blockchain networks.
Chief Executive Officer Sid Gandhi emphasized that privacy limitations continue hindering mainstream acceptance. He observed that conventional stablecoin transactions reveal confidential financial information. Gandhi highlighted that numerous corporate entities refuse blockchain-based payment systems because of these data exposure risks.
Strategic pivot from database technology to payment infrastructure
The company originally launched as Polybase, developing web3 database solutions. Management decided to change course in 2023 following an internal assessment of platform utilization. Analysis revealed greater market potential in the private payment sector.
Developers repurposed existing zero-knowledge infrastructure for payment processing applications. The strategic realignment enabled Payy to concentrate on stablecoin payment systems. Management targets enhanced security and commercial viability for business users.
The wallet product debuted in January 2024. Eight months later, in August 2025, Payy rolled out its Visa-powered payment card. Cardholders can utilize USDC holdings at any location accepting Visa payment cards.
The organization recently unveiled plans for a dedicated Layer 2 blockchain network. This infrastructure will operate atop Ethereum using rollup architecture. Transaction details including participant identities and transfer amounts will remain confidential through default privacy settings.
Expansion roadmap and corporate client focus
According to company metrics, Payy serves over 100,000 users distributed across 120 nations. Annual transaction throughput reaches approximately $130 million. Revenue streams include transaction fees and enterprise licensing agreements.
Management is prioritizing enterprise customer acquisition. Target sectors encompass fintech firms and traditional banking organizations. The objective centers on facilitating high-volume stablecoin transfers with robust privacy safeguards.
Gandhi confirmed that multiple organizations are currently evaluating the technology. He indicated design partners are actively collaborating on the forthcoming testnet deployment. These early adopters are investigating confidential payment applications.
The testnet launch is scheduled for next month. Production mainnet deployment is targeted for summer 2025. Management also intends to launch a proprietary token, although specific timing remains undetermined.
