Zama Launches Privacy-Focused $ZAMA Token with Fully Homomorphic Encryption

• Zama has launched a privacy-focused DeFi metric using Fully Homomorphic Encryption (FHE) to enable encrypted computation on public blockchains without decrypting data according to reports.
• The $ZAMA token is used in a Delegated Proof of Stake (DPoS) system where 18 genesis operators manage the network and serves as a governance, utility, and security mechanism according to reports.
• Zama’s Total Value Shielded (TVS) metric replaces traditional Total Value Locked (TVL) by focusing on encrypted economic value, offering a privacy-first alternative to public visibility according to reports.

Zama’s use of FHE marks a milestone in blockchain privacy, enabling private transactions and smart contracts while maintaining public verifiability of rules according to reports. This innovation addresses the privacy-transparency dilemma in decentralized finance and aims to become a standard for confidential on-chain applications according to reports.

Ripple is expanding its cross-border payment capabilities in Latin America through its Ripple Payments service, which uses RLUSD and XRP to replace traditional banking systems with blockchain-based liquidity according to reports. Bitso, a leading digital asset platform in the region, is leveraging this technology to offer near-instant, USD-pegged liquidity for remittances and B2B payments according to reports.

Institutional clients of Ripple now have access to Ethereum and Solana staking through an integration with staking provider Figment according to reports. This move allows clients to earn protocol rewards without managing validator infrastructure, addressing a gap in XRP’s current staking capabilities according to reports.

What is the impact of Zama’s privacy-focused metrics on DeFi?

Zama’s Total Value Shielded (TVS) redefines how on-chain economic value is measured by emphasizing privacy over public visibility according to reports. This approach caters to users who prioritize confidentiality, especially in decentralized finance applications where data privacy is a growing concern according to reports. The broader adoption of FHE-based metrics could influence the DeFi ecosystem to prioritize privacy as a core feature alongside transparency according to reports.

Zama’s DPoS system and governance model ensure that the $ZAMA token plays a central role in the network’s operations, including validator selection and decision-making according to reports. However, the DPoS model carries centralization risks, as the network is managed by 18 genesis operators according to reports.

How is Ripple enhancing cross-border payments in Latin America?

Ripple Payments is reducing the inefficiencies of traditional cross-border payment systems by utilizing RLUSD and XRP to offer near-instant U.S.-LATAM transfers according to reports. This service is particularly beneficial for businesses that frequently send money across borders, as it eliminates the need for pre-funding capital in different jurisdictions according to reports.

Bitso is leveraging Ripple’s blockchain-based liquidity solution to streamline international transactions and provide businesses with a more efficient, regulated, and transparent payment method according to reports. The integration of regulated stablecoins like RLUSD is part of a larger trend where blockchain is increasingly used in traditional financial operations according to reports.

By replacing slow and costly legacy systems with blockchain rails, Ripple is enabling faster remittances and B2B payments, supporting economic growth in the Latin American region according to reports. The use of RLUSD also helps reduce volatility risks associated with local currencies, providing a more stable medium for international transfers according to reports.

What institutional capabilities is Ripple expanding in the staking space?

Ripple has added Ethereum and Solana staking to its institutional custody platform through an integration with staking provider Figment according to reports. This allows institutional clients to earn protocol rewards without running validator infrastructure, addressing a gap in XRP’s current staking offerings according to reports.

The expansion into Ethereum and Solana staking reflects Ripple’s broader strategy to provide institutional-grade financial products while maintaining compliance with regulatory requirements according to reports. This move aligns with the growing demand for yield-generating opportunities in the institutional crypto market according to reports.

Despite these developments, XRP itself does not currently support protocol-level staking, which may affect its utility and demand compared to other tokens according to reports. Nevertheless, the recent inflows into XRP-focused products suggest continued interest in Ripple’s ecosystem according to reports.