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Zama partners with Morpho and Steakhouse Financial to launch confidential USDC lending, enabling institutional allocators to earn yield without disclosing
Zama, the fastest growing confidentiality protocol for onchain finance, has launched a landmark technical partnership with Morpho and Steakhouse Financial to introduce Steakhouse Confidential USDC Prime vault, the first DeFi yield product for confidential USDC stablecoins (cUSDC) on Ethereum [1]. This move is significant as it addresses the historical lack of confidentiality on public blockchains, which has stalled institutional adoption of decentralized finance (DeFi), and now enables institutional allocators to earn yield on their stablecoins without disclosing their balances and strategy.
| At a glance | |
|---|---|
| Partnership | Zama, Morpho, and Steakhouse Financial |
| Deposits | $11B+ on Morpho |
| TVL | $4.5B on Steakhouse Financial |
| Launch Date | June 23, 2026, for Steakhouse Confidential USDC Prime vault |
The integration of Zama's confidentiality protocol with Morpho's decentralized lending protocol and Steakhouse Financial's USDC Prime vault simplifies a historically complex cryptographic process into a single, seamless user journey [2]. This allows institutions to allocate into Morpho Vaults without compromising operational privacy, as stated by Merlin Egalite, Co-founder of 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, marking the official launch of the Confidential DeFi category on Ethereum.
The economy is stablecoinizing fast, with allocators and corporate treasuries increasingly looking to access stablecoin-based financial products [1]. However, public blockchains expose balances and flows to competitors and front-runners, potentially leading to lower returns. Zama's confidentiality layer integrates directly into the Steakhouse USDC Prime vault framework, allowing institutions to access the same strategy without broadcasting their positions. This partnership serves as a blueprint for future yield products targeting various confidential assets and stablecoins, powered by Morpho.
The launch of Zama's confidential USDC lending product marks a significant shift in the DeFi landscape, enabling institutional capital to move fully onchain while maintaining confidentiality [1]. As the economy continues to stablecoinize, the success of this partnership will be crucial in determining the future of confidential DeFi products.
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Morpho acts as a modular, open credit network that enables the creation of independent lending markets and provides infrastructure for embedding credit products.
The partnership integrates Fully Homomorphic Encryption into Morpho vaults, allowing institutional investors to earn yield on stablecoins without publicly disclosing their balances or financial strategies.
Morpho was founded in 2021 by Paul Frambot, Merlin Egalite, Julien Thomas, and Mathis Gontier Delaunay.
No, the term is also used in the music industry as the title of a solo album by Radiohead guitarist Ed O'Brien.