Zama Launches Confidential Lending for cUSDC with Morpho and Steakhouse Financial

Zama has partnered with Morpho and Steakhouse Financial to launch confidential lending for cUSDC, a stablecoin that offers full confidentiality on Ethereum. This partnership marks the beginning of Confidential DeFi on Ethereum, allowing institutional allocators to earn yield on their stablecoins without exposing their balances and strategies.

The integration simplifies the process of shielding assets by converting standard USDC into cUSDC, which can then be deposited in Morpho vaults like Steakhouse's Prime USDC vault. This allows cUSDC deposits to inherit the security and capital efficiency of the Morpho protocol.

According to Dr. Rand Hindi, Co-founder and CEO of Zama, 'Until now, operating on a public blockchain meant exposing your entire financial playbook to your competitors.' He believes that Fully Homomorphic Encryption (FHE) can bring privacy and decentralization together, making it possible for institutional capital to move fully onchain.

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