The on-chain confidentiality protocol Zama will open deposits for 16 confidential vaults on Morpho, covering assets such as USDC, USDT, AUSD, and TGBP. Its first vault went live in June in collaboration with Morpho and Steakhouse Financial, utilizing Steakhouse's USDC Prime strategy, with total locked value increasing from zero to $40 million within seven weeks. Steakhouse will manage part of the vaults, while Armitage by Wintermute, Flowdesk, RockawayX, and Bitwise will also serve as managers. Users can confidentially access 12 existing non-confidential versions of Morpho vaults on Ethereum, with an additional 4 created specifically for confidential deposits. Zama also launched the Zama Swap Protocol, allowing depositors to confidentially exchange cUSDC, cUSDT, cAUSD, and cTGBP as well as confidential vault shares without disclosing transaction size or intent. Zama stated that exposing positions, balances, and strategies on a public blockchain is a structural barrier for large-scale institutional deployment due to visibility to competitors and frontrunners. The vaults will first be available through Zama's own application, with Utila, Zerion Wallet, and Yield.xyz set to integrate in the coming weeks.