BitGo, ZKsync build tokenized deposit infrastructure to bring banks onchain

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 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—sidestepping 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 keep funds within it, potentially enabling programmable transactions without altering 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 permissioning. Matter Labs CEO Alex Gluchowski said in a press release that tokenized deposits represent “how banks bring money onchain without leaving the regulatory system.”

The companies said the combined stack is already being tested with regulated financial institutions, with broader production rollout targeted for later this year.

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