Zama Raises $57 Million in Series B Funding Round Valuation Surpasses $1 Billion

Zama, a company specializing in open-source cryptography and Fully Homomorphic Encryption (FHE) solutions for blockchain, has successfully raised $57 million in its Series B funding round. This investment was co-led by U.S.-based investment firms Blockchange Ventures and Pantera Capital, bringing Zama’s total funding to over $150 million and its valuation to over a billion USD. The new funding will support Zama’s mainnet launch, ecosystem adoption, and research efforts to make financial applications built with FHE scale to thousands of transactions per second.

The announcement comes at a time when there is an increasing demand within the finance ecosystem for technologies that enable confidential, scalable, and compliant onchain financial applications. Dr. Rand Hindi, CEO and co-founder of Zama, highlighted the significance of this milestone, stating that reaching a $1 billion valuation reflects the market’s confidence in Zama’s FHE technology and the team’s ability to deliver confidentiality to financial applications onchain.

The funding coincides with the launch of Zama’s Confidential Blockchain Protocol and its public testnet in July 2025. This development will enable developers to build confidential applications through Zama’s FHEVM, with support for other EVM chains and Solana to follow. Ken Seiff, Co-Managing Partner of Blockchange Ventures, compared the potential impact of Zama’s technology to that of Ethereum, noting that it could be foundational to global technology infrastructure, particularly as finance moves onchain and regulations tighten globally.

Paul Veradittakit, Managing Partner at Pantera, emphasized the significance of Zama’s FHE protocol launch, stating that it unlocks secure, compliant, and verifiable decentralized applications (dApps) for AI, crypto, and cloud. The protocol paves the way for onchain identity, financial, and consumer applications that were previously out of reach for developers.

Zama’s FHEVM allows for the execution of confidential smart contracts on encrypted data, ensuring both confidentiality and composability. This technology unlocks several use cases, including onchain finance, confidential tokens, identity and proof of humanity, and network states. For example, financial institutions can securely use public blockchains for confidential stablecoin issuance and payments, asset tokenization, and compliance. Additionally, blockchain companies can distribute tokens confidentially, allowing investors and token holders to manage their portfolios more securely.

Zama is actively addressing the core challenges that have historically held back FHE adoption. The company’s FHE technology is currently 100x faster than when it was founded and is capable of supporting most onchain payment use cases. Zama aims to make its technology 100x more scalable within the next five years, allowing it to address the most demanding onchain applications. The company is also working on hardware integration, using GPUs to scale to hundreds of transactions per second, and developing a dedicated hardware-accelerated chip to reach tens of thousands of transactions per second. Furthermore, Zama’s technology does not require developers to learn new programming languages, as they can use existing languages like Solidity and deploy their applications on their preferred chain.

Dr. Hindi emphasized that confidentiality is no longer a niche concern but a foundational requirement, driven by the broad adoption of blockchain in finance. This shift underscores the growing demand for secure, confidential computing technologies. Zama’s success in raising $57 million in its Series B funding round and becoming the world’s first FHE unicorn marks a significant milestone in the industry, reflecting the market’s confidence in the company’s technology and its potential to revolutionize the blockchain landscape.