Zama, the fastest growing confidentiality protocol for onchain finance, today announced a landmark technical partnership with Morpho and Steakhouse Financial to launch Steakhouse Confidential USDC Prime vault, the first DeFi yield product for confidential USDC stablecoins (cUSDC) on Ethereum. Through this initiative, Zama delivers the underlying infrastructure to power the confidential Steakhouse USDC Prime vault, deployed natively on Morpho’s industry-leading decentralized lending protocol. 

Historically, institutional adoption of decentralized finance (DeFi) has been fundamentally stalled by the lack of confidentiality on public blockchains. For corporate treasuries and asset managers, exposing transactions onchain reveals yield strategies and real-time balances to competitors and front-runners, potentially leading to lower returns. With this integration, institutional allocators, corporate treasuries, and active market participants now have a solution that enables them to earn yield on their stablecoins, without disclosing their balances and strategy.

"Until now, operating on a public blockchain meant exposing your entire financial playbook to your competitors," said Dr. Rand Hindi, Co-founder and CEO of Zama. "By bringing Fully Homomorphic Encryption (FHE) to core financial primitives like lending vaults, we are proving that privacy and decentralization are no longer mutually exclusive. This partnership with Morpho and Steakhouse Financial marks the official launch of the Confidential DeFi category on Ethereum, an essential paradigm shift that will finally allow institutional capital to move fully onchain."

This integration simplifies what has historically been a highly complex cryptographic process into a single, seamless user journey:

• Shielding assets: Zama enables converting standard USDC into a shielded cUSDC version, where balances and transfer amounts are encrypted. This is done on Ethereum directly, without the need to bridge to a different chain. Furthermore, cUSDC comes with compliance features built-in, auditability of the shielded supply, and can be used with any standard EVM wallet.

• Depositing in Morpho: Once shielded, cUSDC tokens can be deposited in existing USDC Morpho vaults such as Steakhouse’s Prime USDC vault, and earn yield from it. This means cUSDC deposits inherit the full security and capital efficiency of the Morpho protocol.

"One thing that we keep hearing from institutions is the demand for confidentiality onchain," said Merlin Egalite, Co-founder of Morpho. "Zama's confidentiality stack built on top of Morpho allows institutions to allocate into Morpho Vaults just like any allocation onchain without compromising operational privacy." 

"The economy is stablecoinizing fast. Allocators and corporate treasuries are increasingly looking to access stablecoin-based financial products. For many, the challenge is visibility: public blockchains expose balances and flows to competitors and front-runners. Steakhouse USDC Prime, our oldest vault on Morpho, is designed to be highly liquid and risk-conscious. Zama's confidentiality layer integrates directly into that framework, allowing institutions to access the same strategy without broadcasting their positions. Privacy where it is needed, with compliance and auditability intact", said Sébastien Derivaux, Co-founder of Steakhouse.

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