Zama Spin-Off Raycash Opens Private Stablecoin Payments on Ethereum
Raycash has opened an Ethereum private beta for stablecoin payments with encrypted amounts, no ETH to manage and yield through Morpho.
Key Notes
- Raycash has opened a private beta for confidential stablecoin payments on Ethereum.
- Balances and payment amounts are encrypted, while sender and recipient addresses remain visible.
- The app handles network fees and offers yield through Morpho, with Raycard still in development.
Raycash, a payments startup spun out of Zama, has opened a private beta on Ethereum that combines confidential stablecoin transfers with yield through Morpho. Users can move dollar balances without managing ETH for transaction fees, while the amounts they hold and send remain encrypted.
The company said more than 75,000 people had joined its waitlist before launch, according to The Block. Access is being opened in stages. That makes this an initial rollout rather than unrestricted public availability.
Private Amounts, Public Addresses
Raycash uses Zama’s fully homomorphic encryption, or FHE. The technology allows applications to process encrypted data without first revealing it, so balances can be updated and payments executed while their values remain confidential.
That protection has a defined boundary. Zama’s product explanation says sender and recipient addresses remain visible onchain for peer-to-peer transfers. The system conceals financial amounts, but does not make the parties’ addresses disappear from the public ledger.
Deposits initially arrive as ordinary, publicly visible transfers. They then pass through a short screening period for stolen, sanctioned or other high-risk funds. Eligible stablecoins are wrapped into confidential tokens, which can later be converted back into their underlying stablecoins at a one-to-one ratio.
The distinction matters for everyday payments. A user may want to conceal a salary or account balance without expecting every part of the transaction to become anonymous.
Payments Without Managing ETH
Raycash’s official website describes an app built around a single dollar balance in confidential USDC, or cUSDC. It also lists fiat and crypto funding options and says wallets are created through Privy, with keys remaining under users’ control.
The app handles Ethereum network fees in the background, removing the need to acquire and maintain a separate ETH balance to send payments. This simplifies the payment process without removing Ethereum’s underlying transaction costs.
Raycash is also developing Raycard for spending. Its website labels the card as coming soon, so the product previews do not establish that card payments are already available to beta users.
Morpho Brings Lending Into the App
Users can place idle balances into a vault through Morpho from within Raycash. The integration adds lending income to the payment account rather than requiring a separate DeFi interface.
Morpho’s rate documentation explains that suppliers receive interest derived from borrowing rates, market utilization and fees. An encrypted balance does not turn that lending return into a fixed interest rate.
The distribution strategy has parallels with the Trezor integration covered by CoinScreamer, which brought Morpho lending into a familiar wallet interface. Raycash adds confidential balances and payments to that approach.
CoinScreamer’s earlier Zama coverage examined the protocol’s expansion into consumer finance. The Raycash beta now tests whether encrypted payments and integrated yield can attract regular use beyond the initial waitlist.
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