Zama Scales Confidential Morpho Vaults to 16, Launches Private Swaps on Ethereum
What happened: Privacy-tech firm Zama expanded its confidential Morpho vault lineup to 16 on September 15, 2026, after its first vault reached $40 million in total value locked (TVL) in under two mont
What happened: Privacy-tech firm Zama expanded its confidential Morpho vault lineup to 16 on September 15, 2026, after its first vault reached $40 million in total value locked (TVL) in under two months. Twelve new vaults mirror existing Morpho products, while four are confidential-only, supporting assets like USDC, USDT, AUSD, and TGBP via confidential wrappers. Zama also launched a new protocol, Zama Swap, enabling private swaps between confidential assets and vault shares without revealing transaction size or intent. Planned integrations include Utila, Zerion Wallet, and Yield.xyz.
Why it matters: Zama's use of fully homomorphic encryption (FHE) for on-chain privacy represents a significant step forward for confidential DeFi on Ethereum. The rapid adoption—$40 million TVL in seven weeks—suggests strong demand for privacy-preserving financial products. However, FHE's performance and cost trade-offs remain a challenge, and the solution is currently Ethereum-only.
Source: The Block, PANews, The Defiant