BitGo and ZKsync are teaming up to offer banks a full-stack infrastructure for tokenized deposits as financial institutions look to bring traditional money onto 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 firms to court banks by packaging blockchain capabilities into compliance-friendly systems – bypassing the need for institutions to build and manage complex onchain 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 hold funds within it, potentially enabling programmable transactions without changing existing regulatory frameworks.
ZKsync creator Matter Labs 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 bring money on-chain without leaving the regulatory system.”
The companies said the combined stack is already being tested with regulated financial institutions, with a wider production rollout targeted later this year.
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