Zama opens 16 confidential Morpho vaults and launches private swaps on Ethereum
Zama opens 16 private vaults on Morpho
Zama, an onchain confidentiality protocol, said it is opening deposits into 16 confidential vaults on the Morpho platform on Sept. 15. The vaults cover the crypto assets USDC, USDT, AUSD and TGBP.
Zama also launched the Zama Swap Protocol, which lets users swap between confidential assets on Ethereum without showing the size of the transaction or their intention. The company says these vaults hide positions, balances and strategies from public view.
Key numbers
- 16 confidential vaults opened for deposits on Sept. 15.
- Zama's first confidential vault, launched in June with Morpho and Steakhouse Financial, used Steakhouse's USDC Prime strategy and reached $40 million in total value locked within seven weeks, according to Zama. Total value locked is the amount of crypto deposited in a product.
- 12 vaults provide confidential access to existing Morpho vaults that already have non-confidential versions; four vaults were created as confidential-only products.
- The vaults are curated by Steakhouse Financial, Armitage by Wintermute, Flowdesk, RockawayX and Bitwise.
- The Zama Swap Protocol covers cUSDC, cUSDT, cAUSD and cTGBP, along with shares in the confidential vaults.
Why Zama says this matters
Zama said public blockchains expose positions, balances and strategies to competitors and front-runners, and that this has been a structural barrier to large institutional use. By adding more curated vaults and four new deposit assets, Zama said it wants to let institutional allocators, corporate treasuries and active market participants earn onchain yield without revealing their holdings or strategies.
What Morpho's co-founder said
Morpho co-founder Merlin Egalite said institutions have been looking for more confidential ways to allocate capital onchain. He said adding these confidential vaults on Morpho was an important step, and that it would scale confidential DeFi efficiently and open new possibilities for onchain allocators without changing the strategy, liquidity or risk profile. DeFi, short for decentralized finance, is a set of crypto financial applications that run without traditional middlemen.
Reported details and what remains unverified
These details come from Zama and Morpho, as reported by The Block. The $40 million total value locked figure and the planned wallet support come from Zama and were not independently confirmed.
Where the vaults will appear next
The vaults are going live first through Zama's own app. According to Zama, Utila, Zerion Wallet and Yield.xyz are due to add them in the coming weeks.