BitGo and ZKsync are partnering to offer banks a comprehensive infrastructure for tokenized deposits, as financial institutions seek to bring traditional money on the blockchain rails without stepping outside regulatory boundaries.
The effort combines BitGo’s institutional custody and wallet services with ZKsync’s Prividium, a permissioned, privacy-preserving 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 integrating blockchain capabilities into compliance-friendly systems, avoiding the need for institutions to build and manage complex on-chain architecture themselves.
Tokenized deposits have become a new trend for banks experimenting with blockchain-based payments. Unlike stablecoins, which typically sit outside of the traditional banking system, tokenized deposits hold funds, potentially allowing programmable transactions without changing existing regulatory frameworks.
ZKsync creator Matter Labs positions 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 bring money on-chain without leaving the regulatory system.”
The companies said the combined stack was already being tested with regulated financial institutions, with a wider production rollout planned for the end of this year.
Read more: BitGo and Susquehanna Crypto Offer Institutional OTC Access to Prediction Markets
