Zama partners with Elliptic to integrate blockchain compliance screening into confidential finance applications.
Regulation & Gov ·
Zama and Elliptic have formed a partnership to embed compliance screening into confidential financial applications. Elliptic, which serves more than 700 institutions globally, will handle wallet risk assessment for Zama's app and future confidential products. The collaboration addresses a core adoption barrier: institutions require both data privacy and regulatory compliance before moving financial activity onto public blockchains.
The integration maintains strict privacy boundaries. Elliptic screens wallet addresses for risk before users access confidential applications, but encrypted balances and transaction amounts remain shielded throughout. Zama's Fully Homomorphic Encryption technology ensures sensitive financial details stay encrypted end-to-end while the blockchain itself stays public and auditable. The design separates this approach from mixers and anonymity tools by aligning confidentiality with regulatory expectations rather than circumventing them.
A live application now demonstrates the model: a confidential USDC Prime vault built by Steakhouse Financial and powered by Morpho on Zama. The vault shows how this compliance-by-design framework can extend to additional confidential vaults and financial products. Exactly how broadly the partnership will scale across use cases and whether additional compliance layers will be added remain unspecified.