BitGo and ZKsync launch blockchain platform to tokenize bank deposits

BitGo and ZKsync are developing a blockchain platform to help banks tokenise fiat deposits. The system aims to bring faster, more secure transactions to traditional finance—a market worth an estimated $450 trillion. Two regulated financial institutions have already tested the technology during its trial phase. The new platform combines BitGo's institutional custody and wallet services with ZKsync's Prividium network. This permissioned blockchain is designed for regulated institutions, offering privacy and compliance features that public networks often lack. Unlike many blockchain payment projects, this system does not rely on stablecoins, keeping funds within the traditional banking system.

Banks using the platform will gain 24/7 transaction availability, instant settlements, and programmable payments. The infrastructure also improves security, addressing concerns around public blockchain compliance. Testing is currently underway, with a full launch expected later in 2025. The partnership targets a clear market need: banks want the speed and efficiency of blockchain but struggle with regulatory hurdles on open networks. BitGo's stock rose slightly on the news, trading at $10.00—a 2.16% increase on the day.

The platform could change how banks handle digital transactions by enabling faster, more flexible payments without leaving the regulated banking system. If successful, it may attract more institutions looking to modernise their infrastructure while maintaining compliance. The full rollout is planned for 2025, following further testing.