The Zama protocol now enables confidential transactions for Tether by converting standard USDT into cUSDT. This integration utilizes fully homomorphic encryption and the ERC-7984 standard to hide transaction amounts and balances on the Ethereum blockchain while maintaining DeFi functionality.
As of mid-September 2026, the cumulative shielded volume for cUSDT reached $131.3 million, with a total value locked of $7.7 million. The protocol executed its first confidential USDT transfer in January 2026.
Zama expanded its ecosystem on September 15 by adding 16 confidential Morpho vaults, including products denominated in cUSDT, with support from Steakhouse Financial. One of these vaults previously reached $40 million in TVL within seven weeks of its June 2026 launch.
The native ZAMA token launched in February 2026 via a Dutch auction that raised over $121 million. The token is used for protocol fees and staking by network operators, and it has been integrated into the Revolut fintech platform.
