BitGo and ZKsync are jointly launching a 'tokenized deposits' infrastructure targeting the banking sector. The plan is to provide a 'full stack' package, ranging from custody and wallets to privacy and authority-managed chains, to enable banks to move traditional funds onto blockchain rails without crossing regulatory boundaries.
This collaboration combines BitGo's institutional custody and wallet services with Prividium, developed by ZKSync. Prividium is a permissioned, privacy-preserving blockchain designed for regulated entities, focusing on implementing on-chain payment and settlement functions while controlling participants and data access.
What banks want is not 'on-chain' but 'on-chain within regulations'
The two companies announced that through this joint stack, they support banks in issuing tokenized deposits, transferring them, and handling payments and settlements. The key is 'compliance and control.' They explained that this enables banks to introduce blockchain functions as a package in a regulation-friendly manner, without having to build and operate complex on-chain architectures themselves.
Recently, crypto infrastructure companies have shown a trend of placing emphasis on "regulation-friendly productization" rather than technological competition to attract banks as clients. It is interpreted that the success or failure of adoption is now determined not by the performance or openness of the blockchain itself, but by implementation methods that do not conflict with existing internal control, auditing, and access control systems.
'Tokenized Deposits' Instead of Stablecoins... Banking Sector Experiments on the Rise
Tokenized deposits have emerged as a new trend attracting attention from banks in blockchain-based payment experiments. While stablecoins often circulate outside the traditional banking system, tokenized deposits are structured so that funds remain within the banking system in the form of 'deposits.' For this reason, they are evaluated as offering the potential to implement smart contract-based 'programmable' transactions (such as conditional payments and automated settlements) without significantly altering the existing regulatory framework.
Matter Labs, the developer of GKSync, is positioning Freevidium as a "bridge" connecting innovation in public blockchains with institutional requirements (privacy, permission, and compliance). In a press release, Matter Labs CEO Alex Gluchowski emphasized that tokenized deposits are "a way for banks to bring funds on-chain without leaving the regulatory system."
The two companies announced that this combined infrastructure has already entered the testing phase with regulated financial institutions and aims for a commercial (production) launch within this year. If the banking sector's adoption of tokenized deposits moves from a 'pilot' to 'operation,' competition for regulation-friendly infrastructure in the blockchain-based payment and settlement market is expected to intensify.
🔎 Market Analysis
- The combination of BitGo (institutional custody/wallet) and ZKsync Prividium (permissioned/privacy chain) demonstrates that 'regulation-friendly productization,' rather than 'competition in technical specifications,' has become the key to bank adoption.
What the banking sector wants is not public on-chain expansion, but 'on-chain within regulations' that enhances payment and settlement efficiency while maintaining internal controls, audits, and access rights.
- Tokenized deposits emerge as an alternative to stablecoins: Funds remain within the banking system (deposits), enabling experimentation with programmable payments without significantly altering the regulatory framework.
💡 Strategic Points
- Banks/Financial Institutions: Design the tokenized deposit PoC as a full process from 'issuance-transfer-settlement-settlement,' and internalize regulation requirements such as authorization management (participants), data access control, and audit logs from the outset.
- Infrastructure/Fintech: A package strategy that bundles custody, wallets, permission chains, and privacy into a full stack to lower the 'burden of implementation (setup/operation)' is advantageous.
- Market Key Point: If the expansion from current testing to production within the year is successful, competition for regulation-friendly payment and settlement rails will accelerate (highlighting interbank network, standards, and interoperability issues).
📘 Glossary
- Tokenized Deposits: A structure that represents bank deposits as tokens on a blockchain for use in transfers, payments, and settlements (deposits remain within the bank system).
- Permissioned Blockchain: A blockchain that restricts participants and authority to authorized entities.
- Privacy-preserving: A design that proves the validity of a transaction while disclosing sensitive information (counterparty, amount, details, etc.) only to the necessary extent.
- On-chain settlement: A method in which payment/settlement results are recorded in a blockchain ledger and can be automatically processed by rules (smart contracts).
💡 Frequently Asked Questions (FAQ)
Q.
How are tokenized deposits different from stablecoins?
While stablecoins are often circulated and settled outside the banking system, funds in tokenized deposits remain within the bank's internal regulatory framework in the form of 'bank deposits'.
Therefore, you can attempt programmable transactions such as blockchain-based transfers, conditional payments, and automated settlements while maintaining regulations and internal controls.
Q.
Why is Prividium advantageous to banks?
Prividium is a permissioned, privacy-preserving blockchain designed for regulated entities.
It focuses on implementing on-chain payment and settlement functions while minimizing conflicts with banks' audit and compliance requirements by enabling control over participants and data access rights.
Q.
What is the significance of this collaboration for the market?
It is significant that this is a full-stack package (custodial/wallet + permissioned/privacy chain) that places the key barrier for banks adopting blockchain at the forefront as 'compliance and control' rather than 'performance'.
It is already in the testing phase with financial institutions and aims to expand to production within the year; if successful, it could intensify competition for regulation-friendly on-chain rails in the banking payment and settlement infrastructure.
TP AI Important Notes
The article has been summarized using a language model based on TokenPost.ai. Key points of the text may be omitted or inaccurate.
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