[PRESS RELEASE – Paris, Zug, France/Switzerland, June 25th, 2025]
Zama Raises $57M in Collection B to Carry Finish-to-Finish Encryption to Public Blockchains
- With new backing by main U.S. blockchain traders, Zama turns into the world’s first Absolutely Homomorphic Encryption (FHE) unicorn.
- Funding coincides with the announcement of the Zama Protocol, which allows confidential functions on any blockchain.
- From July 2025, builders can begin constructing FHE functions on Zama’s public testnet.
Zama, the open-source cryptography firm constructing state-of-the-art Absolutely Homomorphic Encryption (FHE) options for blockchain, introduced a $57 million Collection B funding spherical co-led by U.S.-based funding companies Blockchange Ventures and Pantera Capital, bringing Zama’s whole funding to over $150 million, and its valuation to north of a billion USD. The brand new funding will help Zama’s mainnet launch, ecosystem adoption, and analysis efforts to make monetary functions constructed with FHE scale to hundreds of transactions per second.
The timing of Zama’s announcement displays the accelerating demand inside the finance ecosystem for applied sciences that allow confidential, scalable, and compliant onchain monetary functions.
“With this newest increase, Zama turns into the world’s first unicorn within the FHE area, which is a significant milestone for the business. Reaching a $1 billion valuation represents a major improve that displays the market’s confidence in our FHE expertise and our staff’s skill to ship confidentiality to monetary functions onchain” stated Dr Rand Hindi, CEO and co-founder of Zama.
The funding coincides with the announcement of Zama’s Confidential Blockchain Protocol and its public testnet in July 2025, enabling builders to construct confidential functions by way of Zama’s FHEVM, with help for different EVM chains and Solana to observe.
Ken Seiff, Co-Managing Accomplice of Blockchange Ventures, stated: “Not since I first noticed Ethereum in 2014, have I seen an organization commercializing a completely new expertise that may very well be as foundational to our international expertise infrastructure. As finance strikes onchain and laws tighten globally, public blockchains are more likely to be the primary beneficiaries of what Zama is constructing. However the alternative goes properly past that, as industries equivalent to well being care, protection, and just about all others that use cloud computing may massively profit from the stepchange in confidentiality and compliance pioneered by FHE, and particularly, Zama.”
“Zama’s FHE protocol launch is a cryptography milestone. By enabling environment friendly, developer-friendly FHE, Zama unlocks safe, compliant, and verifiable dApps for AI, crypto, and cloud,” stated Paul Veradittakit, Managing Accomplice at Pantera. “The protocol paves the best way for onchain id, monetary, and shopper functions—beforehand out of attain for builders.”
Zama’s FHEVM makes it potential to run confidential good contracts on encrypted knowledge, guaranteeing each confidentiality and composability. Blockchain-native confidentiality unlocks a number of use instances:
- Onchain Finance: Zama allows monetary establishments to securely use public blockchains for a variety of functions, together with confidential stablecoin issuance and funds, asset tokenization, compliance, and extra.
- Confidential Tokens: The flexibility to maintain balances and quantities encrypted onchain allows blockchain firms to distribute tokens confidentially. Buyers, staff members and different token holders now not should publicly disclose their possession, permitting them to higher handle their portfolio and scale back the danger of being focused by hackers.
- Identification and Proof of Humanity: The flexibility to differentiate between people and AI in onchain functions is important to the safety of onchain finance. With the Zama Protocol, software builders can confirm whether or not a consumer is human, with out disclosing their id publicly.
- Network States: Zama allows onchain communities and community states to function confidentially. From forex to id, governance and registries, it now turns into possible to run key infrastructure on public blockchains.
Zama will use the contemporary funding to advance the sector of FHE and additional commercialize its accessibility to blockchain functions and past. Zama is actively addressing the core challenges which have traditionally held again FHE adoption:
- Pace: At present benchmarks, Zama’s FHE expertise is 100x quicker than when the corporate was based, and is now able to supporting most onchain cost use instances. Zama is anticipating its expertise to be 100x extra scalable inside the subsequent 5 years, permitting it to handle probably the most demanding onchain functions.
- {Hardware} integration: Utilizing GPUs allows Zama to scale to a whole bunch of transactions per second. Zama is working in direction of a devoted hardware-accelerated chip to advance FHE efficiency, with the final word objective of reaching tens of hundreds of transactions per second.
- Developer usability: Utilizing Zama doesn’t require studying new programming languages. As a substitute, builders can use Solidity and different current languages, and deploy their functions on their most popular chain.
“This spherical additionally underscores a broader shift: confidentiality is now not a distinct segment concern—it’s a foundational requirement. The broad adoption of blockchain in finance is driving demand for safe, confidential computing applied sciences,” stated Hindi.
About Zama
Zama is an open-source cryptography firm constructing state-of-the-art FHE options for blockchain. Its expertise allows a broad vary of use instances, from confidential finance to Web3 and community states. Zama was based by Dr. Pascal Paillier and Dr. Rand Hindi, and has the most important analysis staff in homomorphic encryption.
To study extra about Zama, customers can go to https://www.zama.ai/.
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