TheBlock
Raycash, a stablecoin payments startup spun out of confidentiality protocol Zama, has gone live on Ethereum mainnet 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. More than 75,000 people joined the waitlist ahead of launch, with access opening in stages.
Why it matters
Stablecoins are increasingly used for saving and sending money, but on public blockchains every balance and transfer is visible to anyone with the address. Raycash lets users wrap existing stablecoins 1:1 into ERC-7984 confidential tokens: payments settle onchain as normal while amounts stay encrypted, and the underlying stablecoins can be recovered through permissionless unwrapping. The wallet is self-custodial and the confidential tokens carry no freeze or seize functions at the token layer.
"People shouldn't have to choose between the benefits of stablecoins and keeping their financial information confidential," said Raycash CEO and co-founder Valerio Leo.
Market impact
Raycash initially supports USDC, with deposits via bank transfer, card, or stablecoin and withdrawals back to bank accounts. Users can send instant payments via payment links without holding ETH for gas, earn private yield on idle balances through Morpho, and grant view access to an accountant or auditor without making activity public. The launch builds on Zama's track record: its first confidential USDC yield vault with Morpho and Steakhouse Financial went from zero to $40 million in total value locked within seven weeks, and the lineup grew to 16 confidential vaults by mid-September. A Raycard for private spending is in development.
Frequently asked questions
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What is Raycash and how does it keep stablecoin payments private?
Raycash is a Zama spin-off that wraps existing stablecoins 1:1 into ERC-7984 confidential tokens using Fully Homomorphic Encryption. Payments settle onchain as normal, but balances and transfer amounts stay encrypted.
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Which stablecoins does Raycash support at launch?
Raycash initially supports USDC, with more stablecoins planned. Users can deposit via bank transfer, card, or stablecoin, and withdraw back to bank accounts.
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Can Raycash freeze or seize user funds?
According to the project, the wallet is self-custodial and the confidential tokens have no freeze or seize functions at the token layer. Underlying stablecoins can be withdrawn through permissionless unwrapping.
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How can Raycash users earn yield on their balances?
Users earn private yield on idle balances through the DeFi platform Morpho, directly from the app. Zama's first confidential USDC vault reached $40 million in total value locked within seven weeks.
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Do Raycash users need to hold ETH to pay gas fees?
No. Raycash handles Ethereum network fees in the background, so users can send, request, and receive payments instantly via payment links without holding ETH in their wallets.
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