Zama Buys TokenOps to Add Encrypted Token Distributions

Zama, a Paris-based cryptography firm, has acquired TokenOps, an enterprise token lifecycle management platform that says it has processed more than $2 billion in distributions. The deal pairs Zama’s encryption technology with TokenOps’ operational tooling for institutional token issuers.

Zama plans to apply Fully Homomorphic Encryption (FHE) and the ERC-7984 confidential token standard to encrypt allocations, release schedules and recipient identities directly on public blockchains including Ethereum and Solana. The company described the capability as enabling encrypted on-chain distributions while keeping sensitive details concealed.

TokenOps will continue operating under its own brand and retain its cross-chain, self-custodial infrastructure. Zama intends to integrate TokenOps’ enterprise token lifecycle stack into its product set and gradually add encrypted lifecycle tools for issuers.

Rand Hindi, co-founder and CEO of Zama, called transparency “a bug disguised as a feature” for institutions and stated the company aims to make confidentiality the default for on-chain financial transactions.

Zama cited analysis from market maker Keyrock showing that about 90% of tokens underperform the broader market within 30 days of a transparent release, with average price drawdowns of roughly 17% within 72 hours of major supply shocks. The firm framed encrypted distributions as a way to limit signaling and front-running risks that can accompany visible token releases.

The technology has been used in production. KAIO, an institutional real-world asset protocol developed by WebN Group and Nomura’s Laser Digital, deployed FHE-powered distributions earlier this year to partners that included BlackRock, Hamilton Lane and Brevan Howard. Zama also used TokenOps’ confidential vesting solution to distribute ZAMA tokens to team members and investors on Ethereum.

Fabio Mancini, co-founder and CEO of TokenOps, said demand for privacy drove the integration and noted the company’s pipeline for confidential finance is ready to scale.

Paul Veradittakit, managing partner at Pantera Capital, an investor in Zama, described signaling risk as a material operational problem for large managers and pointed to the challenges of moving allocations to exchanges or executing over-the-counter trades without revealing positions.

Zama completed a $57 million Series B last year led by Pantera Capital and Blockchange at a reported $1 billion valuation. The company launched its ZAMA token after a CoinList sale that set a $55 million floor fully diluted valuation and reported more than $121 million shielded on Ethereum at debut.

Under the acquisition, the combined stack is intended to let institutions run allocations, staged releases, vesting, airdrops and cap table adjustments while keeping recipient identities and release schedules encrypted on public ledgers.