BitGo and ZKsync team up to tokenize bank deposits on blockchain

BitGo and ZKsync are developing new blockchain infrastructure to help banks tokenize fiat deposits. The system aims to bring faster, more efficient transactions while keeping funds within the traditional banking system. Unlike stablecoins, this approach maintains regulatory compliance for financial institutions. The partnership combines BitGo's institutional custody and wallet services with ZKsync's Prividium network. Prividium is a permissioned, privacy-focused blockchain designed specifically for regulated institutions. Together, they provide banks with a ready-made platform to issue, transfer, and settle tokenized deposits.

The system is currently undergoing testing with several unnamed regulated financial institutions worldwide. No specific banks or regions have been confirmed, but pilot projects are active ahead of a broader commercial launch. The full rollout is expected later in 2025. One key feature is programmable payments, allowing transactions to be automated based on predefined conditions. The infrastructure also promises 24/7 availability, instant settlements, and enhanced security. BitGo, a long-time player in crypto since 2013, is known for its multi-signature wallet technology, which adds another layer of trust to the system. The platform targets banks seeking blockchain efficiency without the compliance risks of public networks. By keeping deposits tokenized within the banking system, it avoids the regulatory challenges tied to stablecoins.

The new infrastructure is designed to bridge traditional banking with blockchain speed and security. With testing underway and a 2025 launch planned, the system could change how regulated institutions handle digital transactions. The focus remains on compliance, automation, and seamless integration with existing financial systems.