BitGo and ZKsync are partnering to offer banks a complete infrastructure for tokenized deposits, as financial institutions look to bring traditional money onto blockchain rails without crossing regulatory boundaries.
The effort combines BitGo’s institutional wallet and custody services with ZKsync’s Prividium, a privacy-preserving, permissioned blockchain designed for regulated entities. The joint offering aims to enable banks to issue, transfer and settle tokenized deposits while maintaining compliance and control.
The move reflects a growing trend among crypto infrastructure companies to court banks by packaging blockchain capabilities into compliance-friendly systems, avoiding the need for institutions to build and manage complex on-chain architecture themselves.
Tokenized deposits have emerged as a new trend for banks experimenting with blockchain-based payments. Unlike stablecoins, which typically sit outside the traditional banking system, tokenized deposits keep funds within it, potentially allowing for programmable transactions without disrupting existing regulatory frameworks.
Matter Labs, creator of ZKsync, is positioning its Prividium network as a bridge between public blockchain innovation and institutional requirements such as privacy and permissions. Matter Labs CEO Alex Gluchowski said in a press release that tokenized deposits represent “how banks get money on-chain without leaving the regulatory system.”
The companies said the combined stack is already being tested with regulated financial institutions, with a broader production rollout planned for later this year.
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