Zama acquires TokenOps to deploy encrypted token distributions for institutional issuers

Zama has acquired TokenOps, an enterprise token lifecycle management platform that says it has processed more than $2 billion in distributions, to bring Fully Homomorphic Encryption to institutional token vesting, airdrops, and cap table operations.

The Paris-based cryptography company, which builds a confidentiality protocol for public blockchains including Ethereum and Solana, said the deal marks a structural shift in how institutions can operate onchain.

According to details shared with The Block, the move is designed to eliminate the signaling and front-running risks inherent in public-by-default blockchain infrastructure. Data cited by Zama puts a concrete cost on that exposure. About 90% of tokens underperform the market within 30 days of a transparent release, with average price drawdowns reaching 17% within 72 hours of major supply shocks, per analysis from market maker Keyrock cited by Zama.

Through the acquisition, token issuers gain the ability to execute the full token lifecycle, including allocations, release curves, and recipient identities, which are encrypted onchain using the ERC-7984 confidential token standard.

"In the legacy onchain world, transparency was a bug disguised as a feature. For an institution, a transparent ledger is an open book for competitors," Rand Hindi, co-founder and CEO of Zama, said. "Our goal is to make confidentiality the default state for every financial transaction onchain."

Tech tested

The technology has already been stress-tested in production.

KAIO, the institutional real-world asset protocol built by WebN Group and Nomura's Laser Digital, deployed FHE-powered distribution for partners including BlackRock, Hamilton Lane, and Brevan Howard earlier this year. Per Zama’s team, the distribution would not have been viable on a public blockchain without encryption. Zama's own (ZAMA) token is also being distributed to team members and investors through TokenOps' confidential vesting solution on Ethereum.

Paul Veradittakit, managing partner at Pantera Capital, an investor in Zama, said signaling risk is a first-order problem at scale. "With over $5 billion under management and significant token positions across the portfolio, we know firsthand that one of the biggest challenges at this scale is avoiding signaling risk when moving allocations to exchanges or executing OTC," Veradittakit said.

TokenOps will continue to operate as an independent brand post-acquisition, maintaining its cross-chain, self-custodial infrastructure and extending confidential lifecycle tools to all token issuers over time.

"Privacy was the number one demand we could not meet with transparent infrastructure," Fabio Mancini, co-founder and CEO of TokenOps, said. "The pipeline for confidential finance is ready to scale."

Zama raised $57 million in a Series B led by Pantera Capital and Blockchange at a $1 billion valuation last June. The project launched its ZAMA token in February after a CoinList sale set at a $55 million floor FDV, with more than $121 million shielded on Ethereum at debut, The Block reported.