Raycash, a stablecoin payments company spun out of fully homomorphic encryption (FHE) protocol Zama, launched on Ethereum mainnet in an invitation-only beta, according to The Block as reported by TechFlow on November 9, 2026. The report put its waiting list at more than 75,000 people and described it as the first retail payments product built on Zama Protocol.
The core mechanism is a privacy wrapper around existing stablecoins: payments still settle on-chain, while balances and transfer amounts remain encrypted rather than publicly visible.
How the payment model works
Users can wrap existing stablecoins at a 1:1 ratio into ERC-7984 privacy tokens. At launch, Raycash supports USDC, with other stablecoins planned.
According to the report, the design includes:
- Permissionless redemption: users can redeem their wrapped tokens without permission.
- Self-custody: users retain custody of their wallets.
- No token-level freezing or confiscation: those functions are not included at the token layer.
- Selective disclosure: users can grant specified parties, such as accountants or auditors, permission to view their financial information.
These are distinct properties. Encrypted amounts address public visibility; self-custody and permissionless redemption concern control and exit. The report does not provide enough technical detail to assess the implementation or its underlying security assumptions independently.
Payments, funding and yield
Raycash supports funding through bank transfers, payment cards and stablecoins, with withdrawals available to bank accounts. Users can send and receive funds instantly through payment links, according to the report. Network fees are handled in the background, so users do not need to hold ETH.
The application also lets users earn yield on idle balances through Morpho. A card product called Raycard, intended for private spending, was still in development at the time of publication.
The preceding Zama rollout
The report places Raycash within a broader rollout of privacy-focused financial applications. In June 2026, Zama, Morpho and Steakhouse Financial introduced what the report described as the first private USDC yield vault. Its assets grew from zero to $40 million within seven weeks. On September 15, the offering expanded to 16 private vaults, alongside the launch of private swaps on Ethereum.
Those figures describe the earlier vault rollout, not Raycash deposits or payment activity. Likewise, Raycash’s waiting-list count is not a measure of active users or settled transactions.
CEO and co-founder Valerio Leo framed the product as a way to avoid choosing between stablecoin convenience and financial privacy. He said users were not being asked to trust a new stablecoin, but to make the dollars they already use private while retaining the ability to exit at any time.
The reported design therefore centers on adding confidentiality to existing stablecoins rather than introducing a new dollar asset. The supplied report documents the launch and product features, but does not establish transaction volumes, Raycash adoption beyond the waiting list, or an independent security assessment.
Original publication: November 9, 2026, at 17:39:20 (UTC+8). Source: TechFlow, citing The Block.