Zama, an open source encryption company, is a pioneer in full homosexual encryption (FHE), and works with OpenzePpelin to use sensitive smart contracts in production.
The protocol by Zama, like the ERC-20, does this without losing the advantages of decentralization and complexity, ensuring that balance and transfer are hidden by default and keeping sensitive information private.
Zama partners with @openzeppelin to bring confidential smart contracts to production. Consider ERC20, but balances and transactions are confidential by default. pic.twitter.com/b6qckhcmt9
-be (@zama_fe) July 23, 2025
Why there is a lack of confidentiality
If all transactions, balances, and counterparties become apparent to the public on the blockchain, then the institution is not done in chains.
The Zama FHE layer has end-to-end encryption, and what is calculated is done in ciphertext rather than in the underlying value. This means that banks, asset managers, and fintechs can have verifiability and auditability in their public ledgers without the need to announce confidential flows or client positions.
Openzeppelin security meets Zama encryption
The contract library and audits provided by Openzeppelin already secures over 218 billion digital assets, setting a new standard of security for Web3.
This collaboration between Zama and Openzeppelin will help develop a combat-proven framework on the backbone of privacy that large companies can rely on.
Developers can implement known patterns of tokens, governance modules, and vaults, but with the encryption layer that promises privacy.
Regulatory finance that is suitable for production standards
Confidential Smart Contracts open a set of compliant applications: Private Credit Markets, On-Chain FX Desks, Tokenized Fund Stocks, and Enterprise Payment Rails.
Regulators continue to receive enforceable rules as trade scale and counterparty confidentiality remains at institutional level.
The bottom line sets the stage for big money for both platforms to give up chains in chains, which is too safe and secretly.
future
This year, Zama will deploy protocols and tools. Co-developed SDKs, templates, and audits accelerate the adoption of cryptographic applications.
This partnership has led to the concept of privacy from niche services to default infrastructure.