Executive Summary

Utila supports Zama’s confidential vaults on Morpho, giving treasury and investment teams a way to manage encrypted yield positions through our institutional digital asset operations platform. Treasury and investment teams can use Utila Yield to allocate to confidential yield positions, with transaction permissions and approvals defined by their organization.

The collaboration combines Zama’s onchain confidentiality with Utila’s treasury governance. This article explains how institutions access confidential vaults, what stays private, what remains visible onchain, and what to assess before allocating.

Confidentiality in Treasury Operations

A company’s activity on a public blockchain can reveal commercially sensitive information. Visible balances and transfers give outside observers a way to follow capital allocations and infer changes in treasury strategy.

Treasury teams also need clear authority over those allocations. Investment decisions must follow internal policies, with defined permissions and approvals governing how funds move.

Our collaboration with Zama brings these requirements together. Teams can access supported confidential yield vaults via Utila Yield using their Utila wallets.

What Is Zama?

Zama is a confidentiality protocol for onchain finance. It uses fully homomorphic encryption, or FHE, to let smart contracts compute on encrypted values. This allows applications to process confidential balances and transfer amounts on existing public blockchains.

Its confidential tokens follow ERC-7984, an open standard with an OpenZeppelin implementation. The standard represents balances and transfer amounts as references to encrypted values.

Zama applies this technology to yield vaults on Morpho. Across its wider offering, Zama’s September 2026 expansion covered 16 vaults across USDC, USDT, WBTC, AUSD and tGBP, with curators including Steakhouse Financial, Armitage by Wintermute, Flowdesk, RockawayX and Bitwise.

What Is Utila Yield?

Utila Yield is a curated catalog of yield strategies built into the Utila console. It gives institutional clients access to supported onchain yield opportunities using their Utila wallets.

Deposits and withdrawals follow the permissions and approval rules configured by each organization, with transactions recorded in its Utila audit trail.

How the Collaboration Works

Utila provides the infrastructure institutions use to manage digital asset operations, including treasury activity and the governance of blockchain transactions. Zama adds confidentiality to eligible onchain yield positions.

Teams can access supported Zama confidential vaults via Utila Yield and use their Utila wallets to authorize the associated transactions.

This gives institutions a way to add confidential yield activity to their existing Utila operations while retaining control over who can authorize transactions.

How Confidential Positions Work

A team shields a supported asset into its confidential form and deposits it into an eligible vault. Confidential shares represent its ownership of the position.

Zama’s vault design groups deposits into batches while keeping each depositor’s amount and shares encrypted. When a batch is deposited into the underlying Morpho vault, its total is decrypted and becomes public. The privacy of an individual position depends on how many independent depositors share that batch.

These boundaries mean treasury teams should assess how assets enter and leave the confidential workflow alongside the privacy of the position itself. Zama’s security model explains the public conversion boundary.

Evaluating the Underlying Strategy

Where a confidential vault connects to an existing Morpho strategy, confidential and public depositors access the same underlying vault. Teams can assess that strategy through its curator, asset exposure and liquidity terms.

Confidentiality also introduces additional contracts and dependencies. Institutions should review these alongside the vault’s batching and withdrawal mechanics. Our wallet policies govern transaction authorization; investment exposure and protocol risks require their own assessment.

This distinction helps treasury teams evaluate both the investment and the operational process used to access it.

Relevant Treasury Use Cases

The collaboration is relevant to treasury and investment teams whose onchain positions contain commercially sensitive information:

• Fintechs and payments companies managing corporate treasury allocations under defined approval policies.

• Stablecoin issuers evaluating eligible yield positions within their investment mandates.

• Trading firms and funds seeking confidentiality for position sizes while maintaining governed access to DeFi.

Across these use cases, Zama protects confidential position data, while Utila provides the operational infrastructure through which teams authorize and manage their activity.

Access Zama Vaults via Utila Yield

Existing Utila customers can contact their account team for the vaults and assets currently accessible via Utila Yield and the steps required to deposit. You can also explore Zama’s vaults and review the terms of the individual strategies.

To discuss confidential yield within your treasury operations, contact our team. For broader context, read our guide to blockchain privacy for banks.