Zama Deploys Encryption Layer on March 24 to Secure RWAs
Blockchain privacy company Zama and tokenization platform T-REX Network announced on March 24, 2026, the launch of a new confidentiality layer for tokenized real-world assets. The solution uses Fully Homomorphic Encryption (FHE), a technology that allows for computation on encrypted data without ever decrypting it. For financial institutions, this means transaction details, asset positions, and portfolio strategies can remain private on-chain, mitigating a critical operational risk that has stalled wider adoption.
This technology provides what the market is terming 'programmable confidentiality,' enabling firms to meet regulatory and audit requirements through selective disclosure without broadcasting sensitive financial data. This functionality mimics the confidential workflows of traditional capital markets, making blockchain-based systems operationally viable for institutions that cannot afford to have their strategies exposed to the public.
Banks Advance Tokenized Deposit Network in 2026
This push for privacy is not isolated to asset tokenization. A parallel effort is underway in core banking, where the Cari Network is collaborating with a group of U.S. regional banks—including M&T Bank Corp, KeyCorp, and Old National Bancorp—to build a tokenized deposit network. The project, which leverages ZKsync's private, permissioned blockchain infrastructure known as Prividium, is targeting a production deployment later in 2026.
The Cari Network is designed to keep tokenized deposits within the regulated banking system, providing an alternative to non-bank stablecoins while offering 24/7 settlement. This structure underscores a key institutional demand: integrating blockchain's efficiency without abandoning established compliance and regulatory guardrails.
We view Cari as the right partner because they've designed a platform specifically for regulated financial institutions that keeps deposits within the banking system.
— Dan Flaningan, Chief Transformation Officer, Old National Bank.
Infrastructure Race Intensifies for Institutional Tokenization
The developments from Zama and the Cari Network are part of a broader competitive landscape. On the same day, March 24, financial infrastructure firm Novarra BBX announced an expansion of its own institutional tokenization platform. This signals an industry-wide race to build comprehensive infrastructure that includes not only token issuance but also institutional-grade liquidity, custody, and compliance frameworks.
The market is clearly maturing from the initial phase of simply creating digital wrappers for assets. The current focus is on constructing the sophisticated financial plumbing required to make these tokenized assets functional financial instruments. Privacy solutions like those from Zama are a critical component, potentially bridging the final gap between blockchain technology and the stringent operational needs of institutional capital.
