Zama, Morpho & Steakhouse unveil confidential DeFi yield vault

Zama, Morpho, and Steakhouse Financial will launch the first confidential DeFi yield vault for USDC on Ethereum on June 23, using encrypted cUSDC for private deposits and yield, while ensuring compliance.

Zama, Morpho, and Steakhouse Financial are set to launch the Steakhouse Confidential USDC Prime vault, the first DeFi yield product for confidential USDC stablecoins on Ethereum. Opening June 23, the vault enables users to convert USDC into Zama’s encrypted cUSDC and deposit directly into Morpho’s Steakhouse USDC Prime vault. This allows users to earn yield while keeping balances, transaction amounts, and strategies private onchain. The product leverages fully homomorphic encryption, allowing smart contracts to process encrypted data without exposing sensitive information. This approach preserves privacy while maintaining auditability and compliance, addressing key institutional requirements. This launch marks a significant advancement for confidential finance on Ethereum, expanding confidential token use from private transfers to yield-generating DeFi strategies. The initiative aims to meet institutional demand for onchain privacy and attract more participants by ensuring sensitive financial data remains hidden from public view.