Zama is reportedly expanding confidential finance on Ethereum (ETH) by widening its Morpho vault lineup and launching private swaps between shielded assets. On September 15, 2026, the protocol opened deposits into 16 confidential Morpho vaults spanning USDC, USDT, AUSD, and TGBP, plus their encrypted counterparts.
Twelve of those vaults give users a private path into strategies that already exist in public form on Morpho.
Four were created only for confidential deposits.
The aim is to let institutions, treasuries, and active traders earn onchain yield without publishing position size, timing, or strategy.
The first product in this series went live in June with Morpho and Steakhouse Financial.
Built around Steakhouse’s USDC Prime strategy, that vault grew from no deposits to about $40 million in total value locked in seven weeks. Zama has treated that growth as proof that demand exists for public-chain yield without a public book.
Steakhouse will curate some of the new vaults. Additional curators include Armitage by Wintermute, Flowdesk, RockawayX, and Bitwise.
The design problem is familiar.
A public ledger shows every wallet, deposit, withdrawal, and allocation.
For large allocators, that visibility can leak strategy, invite copy trading, and expose flow to front-runners.
Zama’s approach encrypts individual balances and transfer amounts while still settling on Ethereum and routing capital into Morpho’s existing markets.
Users therefore keep the same strategy, liquidity, and risk profile, but their personal holdings stay hidden.
Zama has argued that public exposure of positions is a structural barrier to institutional scale.Alongside the vault expansion, Zama is rolling out the Zama Swap Protocol on Ethereum.
It allows exchanges among cUSDC, cUSDT, cAUSD, cTGBP, and confidential vault shares without revealing trade size or intent.
That is a practical gap-filler.
Until now, rotating from a cash-like confidential token into a yield-bearing vault share—or the reverse—often required unwrapping, which put amounts back on the public tape.
Private swaps are meant to keep that rotation inside the confidential set.
The protocol builds on work Zama previewed earlier with a confidential request-for-quote venue, where traders submit encrypted intents and professional market makers compete through a sealed-bid process.Access begins in Zama’s own application.
Integrations with Utila, Zerion Wallet, and Yield.xyz are expected in the coming weeks, which would place the same vaults and swaps in more institutional and consumer wallets.
Morpho co-founder Merlin Egalite has said institutions are increasingly asking how onchain allocation can be made confidential enough to meet operational requirements.
Zama’s answer is to keep settlement on Ethereum rather than move users onto a separate private chain.
The September update extends a simple thesis: addresses and aggregate solvency can stay public, while economically sensitive details stay encrypted. The broader Morpho set multiplies the strategies available behind confidential shares.
The swap layer adds a way to move among those positions without a public print. How much privacy users actually retain will still depend on entry paths, batching, and whether wrapping from public tokens leaves a trail.
The product claim itself is narrower. Same Morpho yield. More assets. A confidential route between them.That combination is what Zama is now putting in front of allocators who want DeFi returns without broadcasting the book