Zama Spinoff Project Raycash Launches on Ethereum, Introducing Private Stablecoin Payments

on November 9, according to The Block, stablecoin payment company Raycash, spun off from the fully homomorphic encryption (FHE) protocol Zama, has launched on the Ethereum mainnet. Initially opening via an invite-only beta test, it already has a waiting list exceeding 75,000 people. It is the first retail payment product built on the Zama Protocol, keeping on-chain balances and transfer amounts encrypted.

Users can wrap existing stablecoins into ERC-7984 privacy tokens at a 1:1 ratio. Payments still settle on-chain as usual, but transaction amounts and balances remain private. Redemptions are permissionless, wallets are self-custodied, and there are no freeze or confiscation functions at the token level. Users can proactively grant viewing permissions to specific parties such as accountants and auditors. Initially supporting USDC, other stablecoins will be added later. Deposit methods include bank transfers, bank cards, and stablecoins, while withdrawals go back to bank accounts. Users can send and receive funds instantly via payment links. Network fees are handled behind the scenes, eliminating the need to hold ETH.

Raycash also allows users to earn yields on idle balances directly within the app through Morpho, and is developing a privacy-focused spending card called Raycard. Contextually, this June, Zama partnered with Morpho and Steakhouse Financial to launch the first privacy-preserving USDC yield vault. Within seven weeks, locked assets grew from zero to $40 million. On September 15, it expanded to 16 privacy vaults and launched private swaps on Ethereum. Co-founder and CEO Valerio Leo stated that users should not have to choose between the convenience of stablecoins and financial privacy. "We don't ask anyone to trust a new stablecoin; instead, we make the dollars everyone is already using private, and they can exit at any time."