Zama Integrates FHE into TREX Ledger for Confidential Tokenized Assets

Zama, a French cryptography startup specializing in fully homomorphic encryption, has integrated its technology into the TREX Ledger to enable confidential handling of tokenized real-world assets on public blockchains. The development, announced on March 15, 2025, allows financial institutions to process sensitive transactions while preserving privacy and regulatory compliance, addressing a key barrier to broader adoption of blockchain for assets like securities, real estate, and commodities.

The integration targets the tension between blockchain transparency and the confidentiality needs of regulated entities. TREX Ledger, a multichain platform built on the ERC-3643 standard, serves as the foundation. This standard embeds identity verification and transfer restrictions directly into smart contracts, keeping underlying know-your-customer data offchain. Zama's fully homomorphic encryption, or FHE, builds on this by allowing computations on encrypted data without decryption. Institutions can wrap existing ERC-3643 tokens into confidential equivalents on a one-to-one basis, ensuring future transfers and balances remain end-to-end encrypted. This setup verifies transaction validity...