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Tay is cute as a nn. But as you say, it needs a more formal name. I haven't read the other posts, so I'm sorry if any of these are repeats:

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Matteo / Mateo (Ital / Span)
Teodor / Teodoro / Teodorek
Taliesin *
Tariq *
Tarquin *
Octavius / Octavian

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Mattea
Teresa * ("teh-RAY-zuh")
Thais * ("tah-EES" or "THAY-iss")
Octavia
Teodora
Condolcezza * ("con-dohl-CHAY-tzuh." Con dolcezza means with sweetness. This was the word Condolezza Rice's parents based her name on.)
Dorotea
Tallulah / Talulla *

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I know you weren't asking for feminine names. I just thought while I was at it I might as well throw a few in for good measure.

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* These names don't have a "tay" sound in them, more like a "ta" or "tah" sound. But they could still work as formal names for a nn Tay in my book.