Eterna Capital Portfolio Company Kakarot has been acquired by Zama

We are proud to share that our portfolio company Kakarot has been acquired by Zama, a global leader in fully homomorphic encryption (FHE), marking a major step toward the next generation of confidential and scalable blockchain infrastructure.

This acquisition represents a powerful convergence between Kakarot’s expertise in Ethereum execution and Zama’s groundbreaking work in privacy-preserving computation. Together, they are addressing one of the most pressing challenges in the blockchain space — enabling privacy without compromising on decentralization or composability.

Key highlights

• Kakarot developed the first zkEVM built directly on Ethereum’s core specification, pioneering a new standard for proving the full Ethereum protocol through zkVMs.
• Zama is the industry leader in applying FHE to real-world applications, enabling computation on encrypted data without decryption.
• The integration of ZK (zero-knowledge) and FHE technologies will power the upcoming Zama Protocol mainnet, enabling private smart contracts, confidential transactions, and scalable solutions that embody privacy by design.
• The acquisition underscores a shared vision for open, composable, and privacy-first blockchains capable of supporting mass adoption.

We have long believed that scalability and privacy are the two defining frontiers for blockchain technology. Kakarot’s journey — from building a zkEVM that faithfully mirrors Ethereum’s execution to achieving MHz-level proving on edge devices — has been a testament to this mission. Joining forces with Zama now brings that vision to a new level, combining the strengths of zero-knowledge proofs and fully homomorphic encryption into one cohesive architecture.

We are confident that this union will accelerate the arrival of a truly private, scalable, and user-centric decentralized internet of value.

We congratulate the Kakarot and Zama teams on this transformative milestone and look forward to supporting the next chapter of their journey toward a confidential and open blockchain future.

Read the official announcement here.

About Kakarot

Founded in 2022, Kakarot built one of the first zkEVMs aligned with Ethereum’s native specification, leveraging zkVMs to prove entire EVM blocks and advance real-time proving capabilities on consumer hardware. Its innovations have been instrumental in pushing the boundaries of Ethereum scalability and privacy. Kakarot is backed by leading investors including Vitalik Buterin, Eli Ben-Sasson, Federico Carrone, Julien Bouteloup, Nicolas Bacca, Longhash Ventures, Eterna Capital, and Fenbushi Capital.

For more information, visit: https://www.kakarot.org/ or follow them on X and LinkedIn

About Zama

Zama is the world’s leading company in Fully Homomorphic Encryption (FHE), enabling computation on encrypted data for Web3, AI, and beyond. By combining symbolic execution and advanced cryptography, Zama is bringing confidentiality to public blockchains without sacrificing composability or liquidity.

For more information, visit https://www.zama.org or follow them on X and LinkedIn.

About Eterna Capital

Eterna Capital is a venture capital firm dedicated to advancing Web3 technologies and the decentralized web. We invest in visionary entrepreneurs pioneering breakthroughs across this emerging landscape, aiming to drive innovation and long-term value creation. By empowering these innovators, Eterna Capital plays a vital role in shaping the future of the decentralized internet while offering our investors strategic access to this transformative ecosystem.

For more information, visit www.eternacapital.com or follow us on LinkedIn, X and Bluesky.

Disclaimer:

This post has been prepared for general informational purposes only and reflects the current views of its authors. The views expressed do not necessarily represent those of Eterna Capital, its affiliates, or individuals associated with Eterna Capital, and may change without notice.

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