Confidential USDC Yield Product Launches on Ethereum via Zama-Morpho Partnership

Zama is launching a confidential DeFi yield product for Confidential USDC (cUSDC) on June 23, allowing users to earn yield on encrypted stablecoin deposits. This marks the first decentralized finance (DeFi) yield product for cUSDC, which enables users to keep their balances and positions encrypted on Ethereum.

The new Steakhouse Confidential USDC Prime vault will route deposits through Morpho's lending protocol while keeping user data confidential. The funds will be allocated to Morpho's existing Steakhouse Prime v2 strategy, offering the same yield model as the standard USDC Prime vault but with added transaction privacy.

Merlin Egalite, co-founder of Morpho, stated that institutional participants have consistently requested greater operational privacy when allocating capital onchain. The launch aims to make decentralized finance more suitable for institutional participants concerned about onchain transparency.