According to TechFlow, citing a June 17 report from The Block, Zama, Morpho and Steakhouse Financial will launch an Ethereum-based confidential DeFi yield product named Steakhouse Confidential USDC Prime Vault. The product is designed for institutional users and will allow them to deposit encrypted USDC and earn yield without publicly disclosing their on-chain holdings, transaction amounts or strategy information.
Steakhouse Confidential USDC Prime Vault targets institutional users
Based on the information disclosed by the project parties, Steakhouse Confidential USDC Prime Vault is positioned as a confidential yield vault rather than a conventional open DeFi pool. Its structure is centered on on-chain privacy and the confidentiality of capital allocation. For institutions participating in DeFi yield products, wallet activity, position size, transaction value and strategy routes can be visible on-chain. This vault focuses on enabling deposits and yield generation while keeping those key allocation details private.
The product will support the direct conversion of standard USDC into encrypted cUSDC on Ethereum. The project parties said this process does not require a cross-chain bridge, meaning users do not need to leave the Ethereum network or move funds through a bridging process in order to obtain the encrypted version of the asset. Deposits for the vault are expected to open through the Zama application on June 23.
FHE technology combined with Morpho lending infrastructure
On the technical side, the product is built using Zama’s fully homomorphic encryption, or FHE, technology and Morpho’s lending infrastructure. Zama provides the encryption-related technology layer, while Morpho contributes DeFi lending infrastructure. Steakhouse Financial is also part of the launch of the yield vault. The combined structure is intended to provide an Ethereum-based yield product entry point for encrypted USDC while preserving confidentiality around holdings, amounts and strategy information.
The project parties said the launch is intended to meet institutional demand for on-chain privacy and confidential capital allocation. The report also noted that Morpho completed a $175 million funding round earlier this month, valuing the protocol at around $2 billion. The upcoming confidential DeFi yield vault with Zama and Steakhouse Financial represents another product initiative tied to Morpho’s lending infrastructure.