[PRESS RELEASE – Paris, Zug, France/Switzerland, June 25th, 2025]
Zama Raises $57M in Sequence B to Carry Finish-to-Finish Encryption to Public Blockchains
- With new backing by main U.S. blockchain buyers, Zama turns into the world’s first Totally Homomorphic Encryption (FHE) unicorn.
- Funding coincides with the announcement of the Zama Protocol, which permits confidential purposes on any blockchain.
- From July 2025, builders can begin constructing FHE purposes on Zama’s public testnet.
Zama, the open-source cryptography firm constructing state-of-the-art Totally Homomorphic Encryption (FHE) options for blockchain, introduced a $57 million Sequence B funding spherical co-led by U.S.-based funding companies Blockchange Ventures and Pantera Capital, bringing Zama’s complete funding to over $150 million, and its valuation to north of a billion USD. The brand new funding will assist Zama’s mainnet launch, ecosystem adoption, and analysis efforts to make monetary purposes constructed with FHE scale to hundreds of transactions per second.
The timing of Zama’s announcement displays the accelerating demand throughout the finance ecosystem for applied sciences that allow confidential, scalable, and compliant onchain monetary purposes.
“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 big enhance that displays the market’s confidence in our FHE expertise and our crew’s potential to ship confidentiality to monetary purposes onchain” mentioned 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 purposes by way of Zama’s FHEVM, with assist for different EVM chains and Solana to observe.
Ken Seiff, Co-Managing Companion of Blockchange Ventures, mentioned: “Not since I first noticed Ethereum in 2014, have I seen an organization commercializing a completely new expertise that could possibly be as foundational to our world expertise infrastructure. As finance strikes onchain and rules tighten globally, public blockchains are prone to be the primary beneficiaries of what Zama is constructing. However the alternative goes properly past that, as industries akin to well being care, protection, and nearly 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,” mentioned Paul Veradittakit, Managing Companion at Pantera. “The protocol paves the best way for onchain id, monetary, and client purposes—beforehand out of attain for builders.”
Zama’s FHEVM makes it possible to run confidential smart contracts on encrypted data, guaranteeing each confidentiality and composability. Blockchain-native confidentiality unlocks a number of use circumstances:
- Onchain Finance: Zama permits monetary establishments to securely use public blockchains for a spread of purposes, together with confidential stablecoin issuance and funds, asset tokenization, compliance, and extra.
- Confidential Tokens: The flexibility to maintain balances and quantities encrypted onchain permits blockchain corporations to distribute tokens confidentially. Traders, crew members and different token holders not need to publicly disclose their possession, permitting them to raised handle their portfolio and cut back the danger of being focused by hackers.
- Id and Proof of Humanity: The flexibility to differentiate between people and AI in onchain purposes is crucial to the safety of onchain finance. With the Zama Protocol, utility builders can confirm whether or not a person is human, with out disclosing their id publicly.
- Network States: Zama permits onchain communities and community states to function confidentially. From foreign money to id, governance and registries, it now turns into possible to run key infrastructure on public blockchains.
Zama will use the recent funding to advance the sector of FHE and additional commercialize its accessibility to blockchain purposes 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 fee use circumstances. Zama is anticipating its expertise to be 100x extra scalable throughout the subsequent 5 years, permitting it to deal with essentially the most demanding onchain purposes.
- {Hardware} integration: Utilizing GPUs permits Zama to scale to a whole lot of transactions per second. Zama is working in the direction of a devoted hardware-accelerated chip to advance FHE efficiency, with the last 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 present languages, and deploy their purposes on their most well-liked chain.
“This spherical additionally underscores a broader shift: confidentiality is 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,” mentioned Hindi.
About Zama
Zama is an open-source cryptography firm constructing state-of-the-art FHE options for blockchain. Its expertise permits a broad vary of use circumstances, 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 crew in homomorphic encryption.
To study extra about Zama, customers can go to https://www.zama.ai/.
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