Summary Points
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Funding Success: Zama has raised $57M in Series B funding, becoming the first Fully Homomorphic Encryption (FHE) unicorn, with a total valuation exceeding $1 billion.
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Launch Announcement: The new funding coincides with the Zama Protocol launch, allowing developers to build confidential applications on a public testnet starting July 2025.
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Confidentiality in Finance: Zama’s technology promises enhanced confidentiality for on-chain financial applications, enabling secure transactions and identity verification without compromising user data.
- Scalability Focus: Zama aims to improve its FHE technology by making it 100x faster, with plans for dedicated hardware to support tens of thousands of transactions per second, enhancing usability for developers familiar with existing programming languages.
Zama Raises $57M in Series B to Bring End-to-End Encryption to Public Blockchains
PARIS/ZUG—June 25, 2025—Zama, a leader in open-source cryptography, has secured $57 million in a Series B funding round. Co-led by Blockchange Ventures and Pantera Capital, this investment positions Zama as the first unicorn in the Fully Homomorphic Encryption (FHE) sector.
This funding drives Zama’s total investment to over $150 million, raising its valuation to more than a billion dollars. Zama aims to launch its mainnet and enhance its ecosystem, focusing on making financial applications capable of processing thousands of transactions per second.
Transitioning to blockchain is becoming essential for financial applications, especially as demand for confidentiality rises. "This milestone reflects the market’s confidence in our team and technology," said Dr. Rand Hindi, Zama’s CEO and co-founder.
With the introduction of the Zama Protocol and its public testnet launching in July 2025, developers can create confidential applications. The Zama FHEVM supports encrypted smart contracts, ensuring both confidentiality and interoperability across various blockchains.
Investors believe Zama’s technology could revolutionize industries beyond finance. Ken Seiff from Blockchange Ventures says, “Public blockchains will be the first to benefit from what Zama is creating.” He sees potential applications in health care, defense, and any sector involving cloud computing.
Paul Veradittakit at Pantera emphasized that Zama unlocks new possibilities for decentralized applications (dApps), allowing secure and compliant frameworks in areas such as identity verification and financial services.
Zama’s innovations enable several crucial use cases:
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Onchain Finance: Financial institutions can securely engage with public blockchains for stablecoin issuance, asset tokenization, and compliance.
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Confidential Tokens: By keeping balances encrypted, Zama allows token holders to manage portfolios without exposing ownership.
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Identity Verification: Developers can verify user identities while maintaining privacy, enhancing security in financial applications.
- Network States: Communities can now operate confidentially, addressing governance and identity challenges on public blockchains.
The newly acquired funding will enhance Zama’s FHE capabilities. The technology is already 100 times faster than when Zama was founded. Further improvements aim for even greater scalability within five years, targeting tens of thousands of transactions per second.
Additionally, Zama simplifies developer engagement by supporting existing programming languages. This approach reduces barriers and accelerates FHE adoption for blockchain applications.
“Confidentiality is now a foundational requirement in technology,” Dr. Hindi noted. Zama stands ready to meet the growing demands of a secure, blockchain-driven financial ecosystem.
For further details, visit Zama’s website.
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