Raycash, a spin-off from cryptography company Zama, has opened a private beta on Ethereum for confidential USDC payments and yield on idle balances. The company said more than 75,000 people have joined its waitlist, with access rolling out in stages ahead of a wider release.

The app wraps dollar balances users already hold into confidential tokens rather than asking them to trust a new stablecoin.

How Raycash's Confidential USDC Payments Work

Raycash describes itself within Zama's ecosystem as an onchain payments product built around private digital dollars, with cards and banking-style rails part of its product story. The company's website is raycash.xyz. Zama itself specializes in fully homomorphic encryption (FHE), a cryptographic technique that allows computation to run on data while it stays encrypted.

At launch, the app starts with USDC, the dollar-pegged stablecoin issued by Circle. Users wrap that USDC 1:1 into ERC-7984 confidential tokens, keeping balances and payment amounts encrypted on a public chain while settlement still occurs onchain. Unwrapping is permissionless, the project says, meaning the underlying dollars can move back out without a new issuer.

Raycash says wallets are self-custodial and that the confidential tokens carry no freeze or seize functions at the token layer. That claim sits next to a different risk class: exchange freezes after flagged deposits remain real, as recent discount USDT Binance freeze warnings showed. Users can still grant view access to named parties such as an accountant or auditor.

Deposits can arrive by bank transfer, card, or stablecoin, and withdrawals can return to bank accounts. Payment links handle sending, requesting, and receiving. Network fees are handled in the background, so users do not need to hold ETH for gas.

Idle balances can earn yield through Morpho from inside the app, and a private spending card branded Raycard is 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.”

Why Encrypted USDC Matters on a Public Chain

Every ordinary ERC-20 transfer publishes the balance, amount, and counterparty to anyone with a block explorer. Confidential USDC (cUSDC) keeps the same dollar token, but amounts and balances are encrypted by default.

ERC-7984, the confidential fungible token standard drafted on ethereum.org that grew out of Zama's confidential-token work, keeps an account-based model in which transfer amounts and balances become confidential pointers rather than public integers. Zama's product pages say the interface mirrors ERC-20, with encrypted handles replacing visible values and access control covering authorized viewers.

That stack is what Raycash is productizing for payments. The company is not minting a competing dollar; it is wrapping an existing one.

Where the Morpho Yield Fits

Confidential dollars need somewhere to work when they sit idle. In June 2026, Zama launched a Morpho vault curated by Steakhouse Financial for confidential USDC deposits. Zama later said that first vault grew from zero to more than $40 million in shielded TVL within seven weeks. On September 15, it expanded to 16 confidential Morpho vaults across five curators and five asset classes, alongside confidential swaps.

Raycash's Morpho earn feature sits on that same privacy-plus-yield path, but lives inside a payments app rather than a protocol dashboard. The beta claim is simple: users can send encrypted dollars, and when they are not sending, they can earn without broadcasting position size on a public explorer.

What a Private Payments Beta Signals

The recurring question the launch presses: when a stablecoin payment sits on a public chain, what does confidentiality at the amount layer actually change?

It does not change the dollar claim itself. USDC's issuer relationship and reserve story stay upstream of the wrap. What changes is the visibility tax. Public balances and public payment amounts are a real inconvenience, hitting payroll, peer transfers, and anyone who does not want a wallet address to become a full spending diary. Encrypted amounts attack that inconvenience without inventing a new peg.

The failure mode to keep in view is trust migration, not the peg story. Users still have to trust the app's fee handling, the wrap and unwrap path, the Morpho yield routing, and the no-freeze claim at the token layer. A waitlist is not proof of active spending, and a private beta is not proof that accountants, banks, or regulators will accept selective disclosure as enough. Those tests sit ahead of the invite list.

Unknowns remain. Public materials so far do not break out how many waitlist users are live in the beta, how much USDC is wrapped, or when Raycard ships. Broader stablecoin support is promised after USDC, without a dated schedule in the launch materials.

The peg promise remains the same question it has always been. The launch answers a different one: whether everyday dollar payments on Ethereum can hide the amounts without asking users to leave the dollar they already use.