On June 23, 2026, Zama, in partnership with Morpho and Steakhouse Financial, will launch the Steakhouse Confidential USDC Prime vault on Ethereum mainnet, marking the first DeFi yield product for confidential USDC (cUSDC). The vault allows institutional and retail users to earn yield on USDC without revealing their position size, timing, or strategy on-chain.
The product utilizes Zama’s fully homomorphic encryption (FHE) to convert standard USDC into cUSDC, which encrypts balances and transfer amounts. Deposits are routed through Steakhouse into Morpho’s lending markets, where collateral such as cbBTC, WBTC, and wstETH generate yield. The underlying vault parameters remain unchanged, preserving liquidity, risk management, and compliance.
Morpho has surpassed $11 billion in deposits, and Steakhouse manages over $4.5 billion in TVL, underscoring the infrastructure's strength. “Demand for onchain confidentiality from institutions is a constant,” said Merlin Egalite, co-founder of Morpho. Sébastien Derivaux of Steakhouse highlighted that Zama’s layer integrates directly, maintaining compliance and auditability. The system also offers selective disclosure and freezing logic — demonstrated when a court order temporarily affected the cUSDC contract before being lifted.
In tandem, Zama launched a conversion campaign: every $10 converted earns an entry for prizes of $1,000 in cUSDC, with the draw on June 23 using its own randomness system.
