Zama spin-off Raycash launches confidential stablecoin payments and private yield on Ethereum
Raycash, a stablecoin payments startup spun out of confidentiality protocol Zama (ZAMA), has launched on Ethereum mainnet, initially through a private beta.The app is the first retail payment product built on the Zama Protocol, which uses Fully Homomorphic Encryption (FHE) to keep onchain balances and transaction values encrypted, according to a statement shared exclusively with The Block. It enables users to hold dollars, send peer-to-peer payments, and earn yield on their balances while keeping amounts confidential. Raycash said more than 75,000 people joined a waitlist ahead of the launch, with access opening in stages during the private beta, followed by broader availability.Zama launched its first confidential USDC yield vault in June with Morpho and Steakhouse Financial. The vault went from zero to $40 million in total value locked within seven weeks. Zama expanded that lineup to 16 confidential vaults on Sept. 15, and launched private swaps on Ethereum.Raycash initially supports USDC at launch, with more stablecoins planned. The app supports deposits via bank transfer, card, or stablecoin, and withdrawals to bank accounts. Users can send, request, and receive payments instantly using payment links, and receive dollars as stablecoins from others. The project said it handles Ethereum network fees in the background, meaning users don't need to hold ETH in their wallets for gas fees.Confidential tokens on EthereumRaycash said that while stablecoins are increasingly being used for saving and sending money, the nature of public blockchains means every account balance and transfer amount is visible to anyone with the address. Instead, Raycash allows users to wrap existing stablecoins 1:1 into ERC-7984 tokens, a confidential token standard built using Zama's FHE technology. Payments settle onchain as normal, but the amounts and balances stay encrypted, and the underlying stablecoins can be withdrawn through permissionless unwrapping, according to the project.Raycash said its wallet is self-custodial and that the confidential tokens have no freeze or seize functions at the token layer. However, users can grant view access to specific parties, such as an accountant or auditor, without making their activity public.Users can also earn yield privately on idle balances through DeFi platform Morpho, directly from the app, the project said, adding that a Raycard for private spending is also in development."People shouldn't have to choose between the benefits of stablecoins and keeping their financial information confidential," Raycash CEO and co-founder Valerio Leo said. "We don't ask anyone to trust a new stablecoin: we take the dollars people already use and make them private, and they can move back out whenever they want."