Zama opens 16 confidential Morpho vaults and swap protocol on Sept. 15

Zama launched a swap protocol for trading confidential assets on Ethereum alongside the opening of 16 confidential vaults on Morpho on Sept. 15. This rollout follows an initial vault that accumulated $40 million in deposits prior to the broader release.

Twelve of the new vaults replicate non-confidential versions on Ethereum, while four were designed specifically for confidential deposits. Steakhouse curates the offering, with Armitage, Flowdesk, RockawayX, and Bitwise handling other aspects. The protocol allows trading of cUSDC, cUSDT, cAUSD, and cTGBP, as well as shares in the confidential vaults.

"By expanding the range of curated confidential vaults and adding four new asset classes as deposit assets, Zama enables institutional allocators, corporate treasuries, and active market participants to access diversified onchain yield without disclosing their holdings or strategies," Zama said. The company added that public blockchains expose positions and strategies to competitors and front-runners, a condition it identified as an impediment preventing large-scale institutional adoption.

Morpho co-founder Merlin Egalite described the update as a significant step for scaling confidential DeFi efficiently. He noted that the change creates new options for allocators without altering the underlying strategy, liquidity, or risk profile.

The vaults are initially accessible via Zama’s application. Utila, Zerion Wallet, and Yield.xyz are expected to integrate support in the coming weeks.