Raycash Opens Private Beta for FHE USDC Payments

Raycash, a Zama spin-out, opened a private beta on Ethereum mainnet on November 9, 2026. The launch covers confidential USDC payments and idle-balance yield backed by Fully Homomorphic Encryption. The company says more than 75,000 people joined a waitlist. Invite access rolls out in stages. Raycash confidential USDC FHE wraps ordinary USDC 1:1 into ERC-7984 confidential tokens. Balances and payment amounts stay encrypted. Settlement stays onchain.

That is the news. The tech claim is sharper. Raycash is productizing FHE from the Zama Protocol so a payments app can move dollars on a public chain without publishing the numbers.

What the Beta Puts in Users' Hands

Raycash lists itself in Zama's ecosystem as an onchain payments product built around private digital dollars. Cards and banking-style rails sit in the product story. The company site is at raycash.xyz.

At launch, the app starts with USDC. Users wrap that USDC into confidential tokens. Unwrap is permissionless, the project says. The underlying dollars can move back out without a new issuer. Wallets are self-custodial through Privy, Raycash says. The firm claims nobody at Raycash can move or freeze user money at the key layer. Users can still grant view access to named parties such as an accountant or auditor.

Deposits can arrive by bank transfer, card, or stablecoin. Withdrawals can return to bank accounts. Payment links handle send, request, and receive. Network fees are handled in the background. Users do not need to hold ETH for gas. Idle balances can earn yield through Morpho from inside the app. A private spending card branded Raycard is listed as coming soon.

On X, Raycash also said 500 private-beta spots are reserved for the Zama community. Balances and transfer amounts stay encrypted by default on the Zama Protocol.

"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."

How Raycash Confidential USDC FHE Moves on Ethereum

Ordinary ERC-20 transfers publish balance, amount, and counterparty to anyone with a block explorer. Confidential USDC (cUSDC) reframes that problem with FHE. The dollar claim stays USDC. Amounts and balances become encrypted by default. Zama's product pages say the wrapper is 1:1, lives on Ethereum mainnet, and is built on ERC-7984 with OpenZeppelin-audited contracts.

ERC-7984, the confidential fungible token standard drafted on ethereum.org, keeps an account-based model. Transfer amounts and balances become confidential pointers rather than public integers. Zama's ERC-7984 explainer walks the payment path in three steps. The client encrypts the transfer amount on-device before submit. Coprocessors then do balance checks, subtraction, and addition on ciphertext. Access control decides who may decrypt: the owner by default, plus any authorized viewer such as an auditor.

That is the mechanism Raycash is wrapping in a phone app. Homomorphic encryption is why the app can settle on Ethereum without writing readable dollar figures into the public log. The chain still records that a transfer happened. It does not advertise how much moved.

The company is not minting a competing stablecoin. It is wrapping an existing one and selling the privacy layer as the product.

What Is Demonstrated, and What Is Not

What primary materials show today is a private-beta product surface: a waitlist, a Zama-powered encryption path, an ERC-7984 wrap story, Morpho earn inside the app, and self-custody claims on the company site. Zama's own confidential Morpho path is older than this beta. In June 2026 it launched a Morpho vault for confidential USDC. Zama later said that first vault grew past $40 million in shielded TVL within seven weeks. A September expansion opened 16 vaults.

What remains unfinished is proof of retail spend at scale. Public materials do not break out how many waitlist users are live in the beta, how much USDC is wrapped through Raycash, or when Raycard ships. Selective disclosure for accountants and regulators is designed into the stack. Acceptance by banks, payroll shops, and supervisors still sits ahead of the invite list.

The catch for AI and blockchain readers is not a new dollar peg. It is whether FHE confidential tokens can survive everyday payments. The risk is a slide back into trusted intermediaries for fees, yield routing, or view rights. This beta is a product bet that ciphertext can be the default balance sheet on a public chain.

The mental model to keep is simple. Settlement stays on Ethereum. The numbers do not have to. Watch whether beta users actually send encrypted dollars. Watch whether Morpho positions stay private in practice. And watch whether unwrap stays as easy as the launch pitch when real money wants out.