Paris-based confidential finance startup Zaiffer has emerged from stealth with €2 million and a mission to carry a compliance-ready layer of privateness to the decentralised finance (DeFi) world.
Backed by a joint funding from open-source cryptography firm Zama and Web3 enterprise builder PyratzLabs, the newly created enterprise is launching what it calls a breakthrough primitive for decentralised finance – confidential tokens, or cTokens.
“Our mission has at all times been to assist builders scale the following era of Web3 firms,” stated Bilal El Almay, co-founder and CEO, Zaiffer. “Consider Zaiffer because the VPN for on-chain finance: confidentiality you’ll be able to activate or off, with out leaving DeFi or altering wallets. It’s a protocol that balances innovation, compliance, and usefulness. We’re proud to companion with Zama to assist carry confidential DeFi to market.”
Zaiffer’s funding positions it inside a broader 2025 European development centered on privacy-preserving blockchain and DeFi infrastructure.
In France, fellow Paris-based cryptography firm and investor Zama raised €49 million to commercialise totally homomorphic encryption (FHE) for public blockchains – the identical core expertise powering Zaiffer’s confidential token layer. Austria’s TACEO secured €4.8 million to increase its “Non-public Shared State” system for encrypted information collaboration, which incorporates functions for DeFi and controlled monetary environments. Within the UK, BOB raised €8.1 million to construct a hybrid Layer-2 community bridging Bitcoin with DeFi protocols.
Altogether, these 2025 rounds account for roughly €61.9 million in funding throughout privacy-enhanced or cryptography-driven DeFi infrastructure in Europe.
The presence of each Zaiffer and Zama in Paris highlights France’s rising energy in encryption-based blockchain innovation, significantly in making use of FHE to decentralised monetary methods.
Zaiffer’s smaller, focused elevate contrasts with Zama’s bigger push, however each share the identical technological and regulatory ambition: to make DeFi extra confidential whereas remaining compliant.
Based in 2025 in Paris, Zaiffer builds on Zama’s FHE expertise, which permits computations on encrypted information with out ever needing to decrypt it. Utilizing Zama’s FHE protocol – a decentralised computation community -Zaiffer’s transactions can course of encrypted information in below 5 seconds, bringing sensible efficiency to a expertise usually dismissed as too gradual or theoretical for real-world monetary use.
“FHE is prepared for mainstream functions. With Zaiffer, we display FHE’s potential to energy real-world monetary infrastructure, combining confidentiality with regulatory compatibility. This can be a turning level for blockchain adoption,” stated Rand Hindi, CEO at Zama.
The brand new protocol permits any ERC-20 or EVM-compatible token to be “shielded” right into a confidential model (e.g., USDC to cUSDC, ETH to cETH), hiding transaction quantities whereas preserving sender and receiver trails.
These cTokens supply customers selective disclosure options for auditors, exchanges or regulators, thereby threading the needle between privateness and compliance in a blockchain world nonetheless grappling with the tensions between transparency and confidentiality.
This stage of encryption allegedly permits not solely privacy-preserving token transfers but additionally complicated monetary operations akin to confidential payrolls, OTC trades, cross-border funds, and stealth-mode treasury administration. Customers can selectively reveal balances or grant entry to 3rd events briefly, making it appropriate for audit-ready use instances like AML compliance and regulatory screening.
Importantly, Zaiffer operates with no need new wallets, bridges, or adjustments to current DeFi infrastructure – a key usability benefit that might enhance adoption amongst each retail customers and establishments.
The launch is well timed, as establishments proceed to indicate curiosity in DeFi however stay hesitant as a result of lack of strong confidentiality options. The corporate says that current options like mixers or privateness cash pose audit challenges or require migration to different chains.
Zaiffer goals to fill this void with a common confidentiality layer for Ethereum-compatible tokens, aligning with regulatory wants whereas preserving DeFi’s openness.
A demo of Zaiffer is already reside on the Sepolia testnet, with a full mainnet rollout and SDK integration anticipated by November 2025. This upcoming launch will embrace instruments to embed cToken options instantly into DeFi merchandise. The roadmap additionally contains confidential AMMs, lending, borrowing, and perpetuals.
The €2 million funding is earmarked for product growth, regulatory integrations, and development initiatives as Zaiffer positions itself because the confidentiality layer of the DeFi financial system.
Zaiffer’s method may redefine the baseline for privateness in decentralised finance, providing customers and establishments a center floor between full transparency and off-chain opacity – with out compromising both innovation or regulation.
