Zama Powers Confidential DeFi Yield Product with Morpho Partnership

Zama, a confidentiality protocol for onchain finance, has partnered with Morpho and Steakhouse Financial to launch the first DeFi yield product for confidential USDC stablecoins (cUSDC) on Ethereum. The partnership brings together Zama's Fully Homomorphic Encryption (FHE) technology with Morpho's decentralized lending protocol.

The new vault, called Steakhouse Confidential USDC Prime, allows institutional allocators and corporate treasuries to earn yield on their stablecoins without exposing their balances and strategy. This is made possible by Zama's ability to shield assets, converting standard USDC into a confidential version that can be used with any standard EVM wallet.

The integration simplifies the process of confidentiality on public blockchains, which has historically been a complex cryptographic process. With this partnership, institutions can now allocate their funds onchain without compromising operational privacy.

Dr. Rand Hindi, Co-founder and CEO of Zama, stated that 'until now, operating on a public blockchain meant exposing your entire financial playbook to your competitors.' He added that this partnership marks the official launch of the Confidential DeFi category on Ethereum, which will allow institutional capital to move fully onchain.

The confidential version of the Steakhouse USDC Prime vault on Morpho will officially open for deposits on June 23, 2026, on the Zama app. This integration serves as a blueprint for future yield products targeting various confidential assets and stablecoins, powered by Morpho.