Zama Expands Confidential Morpho Vaults and Launches Private Swaps on Ethereum

Zama is expanding its Morpho vault lineup to include confidential deposits in USDC, USDT, AUSD, and TGBP, along with their encrypted counterparts. This move aims to provide institutions, treasuries, and active traders with the ability to earn on-chain yield without publishing position size, timing, or strategy.

The expansion includes 16 confidential Morpho vaults, with 12 providing a private path into existing public strategies on Morpho and four created specifically for confidential deposits. Steakhouse Financial will curate some of the new vaults, joining other curators such as Armitage by Wintermute, Flowdesk, RockawayX, and Bitwise.

Zama's approach encrypts individual balances and transfer amounts while still settling on Ethereum and routing capital into Morpho's existing markets. This allows users to maintain their strategy, liquidity, and risk profile while keeping their personal holdings hidden.

The company is also rolling out the Zama Swap Protocol on Ethereum, which enables exchanges among cUSDC, cUSDT, cAUSD, cTGBP, and confidential vault shares without revealing trade size or intent. This is a practical solution to the problem of unwrapping, which often put amounts back on the public tape.