Zama has unveiled its groundbreaking Confidential Blockchain Protocol, a major leap forward in blockchain privacy, while simultaneously announcing the close of a $57 million Series B funding round.
The funding, which values the company at over $1 billion, was led by Pantera Capital and Blockchange Ventures and will fuel the continued development and deployment of the protocol.
Today, we’re unveiling our most ambitious product to date: the Zama Confidential Blockchain Protocol—and announcing our $57 million Series B funding round at a valuation of over $1 billion, led by @PanteraCapital and #BlockchangeVC. Public Testnet goes live on July 1st. pic.twitter.com/zCTlhiXv35
— Zama (@zama_fhe) June 25, 2025
At the heart of this innovation is Zama’s proprietary Fully Homomorphic Encryption (FHE) technology. Unlike conventional encryption methods, FHE allows data to remain fully encrypted during processing. This breakthrough enables the execution of confidential smart contracts on public blockchains.
What sets Zama apart is its role as a cross-chain confidentiality layer rather than a standalone Layer 1 or Layer 2 blockchain. It integrates directly with existing chains like Ethereum and Solana, eliminating the need to bridge assets or migrate to a new ecosystem.
Zama has also implemented Multi-Party Computation (MPC) for decentralized key management and Zero-Knowledge Proofs (ZK) to validate encrypted user inputs. Together, these technologies deliver a scalable and compliant architecture that puts control in the hands of developers and users.
The protocol currently supports up to 20 transactions per second, with ambitious plans to surpass 10,000 TPS through the use of advanced hardware such as GPUs, FPGAs, and ASICs.
Key applications include confidential payments, tokenized real-world assets (RWAs), sealed-bid auctions, private token distributions, and fully on-chain corporate governance.
With its testnet set to launch on July 1 and the $ZAMA token rollout on the horizon, the protocol is being heralded as a critical step toward mass adoption. CEO Rand Hindi likens the shift to the internet’s evolution from HTTP to HTTPS, stating,
“Privacy must become the default. We’re building infrastructure that could one day power entire companies, cities, even nations.”
In a related development, the Algorand Foundation has announced a partnership with Paycode, a leader in biometric and offline-first digital payments, to boost financial inclusion in underserved regions jointly. This signals growing momentum across the blockchain space toward privacy, accessibility, and real-world utility.
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