Crypto privacy firm Zama has acquired TokenOps to bring confidential token management tools to institutional blockchain users.
The acquisition will allow institutions to manage token vesting, airdrops, allocations, and cap tables using Fully Homomorphic Encryption (FHE). This technology keeps sensitive transaction data hidden while still operating on public blockchains like Ethereum and Solana.
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Zama acquires TokenOps to roll out confidential & fully compliant token distributions, airdrops, and vesting.
Public blockchains just became viable for institutional capital. pic.twitter.com/3COZpGmRxy
— Zama (@zama) May 20, 2026
TokenOps said it has already processed more than $2 billion in token distributions for clients before the acquisition.
Zama targets transparency risks in crypto markets
Zama said the deal addresses one of the biggest problems facing institutional crypto participants, which is showing risk caused by transparent blockchain activity.
On public blockchains, large token unlocks or transfers can often be tracked in real time, exposing investors and companies to front-running and market speculation. According to data cited by Zama from market maker Keyrock, around 90% of tokens underperform the market within 30 days of a transparent token release. Average price declines can reach 17% within 72 hours after major token unlocks.
The acquisition will integrate TokenOps’ infrastructure with Zama’s ERC-7984 confidential token standard, allowing token allocations, release schedules, and recipient identities to remain encrypted on-chain.
Zama co-founder and CEO Rand Hindi said public transparency has become a disadvantage for institutions operating on blockchain networks.
Institutional players are already testing the technology
The encryption technology has already been used in live institutional deployments.
KAIO, a real-world asset protocol backed by WebN Group and Laser Digital, reportedly used the system earlier this year for token distributions involving firms such as BlackRock, Hamilton Lane, and Brevan Howard.
Zama also confirmed that its ZAMA token distribution to investors and team members is handled through TokenOps’ confidential vesting system on the Ethereum network.
TokenOps to remain independent after acquisition
Following the acquisition, TokenOps will continue operating as an independent brand while expanding confidential token management services across multiple blockchain networks.
The deal comes less than two years after Zama raised $57 million in a Series B funding round led by Pantera Capital and Blockchange Ventures at a reported $1 billion valuation. Additionally, Zama is pushing the boundaries of blockchain privacy with a recent integration with T-REX that could reshape how institutions interact with tokenized assets on public networks.
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