Disclaimer: The below article is sponsored, and the views in it do not represent those of ZyCrypto. Readers should conduct independent research before taking any actions related to the project mentioned in this piece. This article should not be regarded as investment advice.
Open-source cryptography company Zama has raised $57M in a series B funding round to bring end-to-end encryption to public blockchains.
The company, known for building state-of-the-art Fully Homomorphic Encryption (FHE) solutions for blockchain, received backing from leading U.S. blockchain investors such as Blockchange Ventures and Pantera Capital, making it the world’s first Fully Homomorphic Encryption (FHE) company.
With this milestone, Zama has a total funding of over $150 million, and its valuation is over a billion dollars. The new funding will go into Zama’s upcoming mainnet launch, ecosystem adoption, and research efforts to make fintech applications built with FHE scale to thousands of transactions per second.
Zama’s announcement is timely, considering there has never been a higher need for confidential, scalable, and compliant on-chain financial applications in the finance ecosystem than now: Dr Rand Hindi, CEO and co-founder of Zama.
“With this latest raise, Zama becomes the world’s first unicorn in the FHE space, a major milestone for the industry. Reaching a $1 billion valuation represents a significant increase that reflects the market’s confidence in our FHE technology and our team’s ability to deliver confidentiality to financial applications onchain.”
Zama is also launching the public test net for its Confidential Blockchain Protocol in July 2025. This protocol enables developers to build confidential applications through the company’s FHEVM, with support for other EVM chains and Solana to follow.
Zama’s FHEVM makes it possible to run confidential smart contracts on encrypted data, guaranteeing confidentiality and composability. This confidentiality unlocks several use cases, which include:
Apart from using the fresh funding to advance the field of FHE and further commercialize its accessibility to blockchain applications, Zama is also working towards addressing key issues that have historically held back FHE adoption:
