Zama spin-off project Raycash launches on Ethereum, introducing private stablecoin payments

Raycash, a stablecoin payments spinout of the FHE protocol Zama, launched on Ethereum mainnet in invite-only beta with a waitlist exceeding 75,000 users, offering the first retail payment product built on Zama Protocol with encrypted onchain balances and transfer amounts. Users can wrap existing stablecoins 1:1 into ERC-7984 privacy tokens, starting with USDC, with permissionless redemption, self-custody, no token-level freeze or seizure functions, and optional disclosure to accountants or auditors; fiat on-ramps include bank transfers and cards, and gas fees are handled in the background so users need no ETH. The app also lets users earn yield on idle balances via Morpho and is developing a Raycard for private spending. The launch extends Zama's privacy stablecoin push, which began with a Morpho and Steakhouse Financial privacy USDC yield vault in June that grew from zero to $40 million in locked assets in seven weeks before expanding to 16 privacy vaults on Ethereum on September 15. Next to watch: the beta's expansion beyond invite-only access, added stablecoin support, and whether the Morpho yield integration and Raycard draw retail deposits.