BitGo and ZKsync are working together to build infrastructure that allows banks to issue and settle tokenized deposits on a permissioned blockchain. The integration combines BitGo’s custody capabilities with ZKsync’s blockchain technology. The initiative is currently in a testing phase, with the goal of supporting financial institutions operating within existing regulatory frameworks.
The partnership is designed to enable programmable payments, a feature that allows financial transactions to be automated and executed through code embedded in the blockchain. By combining custody services with a permissioned network, the two firms aim to reduce the complexity that banks typically face when adopting blockchain technology. The approach is intended to make the transition more accessible for regulated financial institutions.
Tokenized deposits represent a digital form of traditional bank deposits recorded on a blockchain ledger. Settling such deposits on a permissioned chain means that access to the network can be restricted to approved participants, which aligns more closely with the compliance requirements that banks must meet. This structure is seen as a way to bridge the gap between conventional banking operations and emerging blockchain-based financial infrastructure.
The collaboration reflects a broader trend of established financial technology firms seeking to make blockchain solutions compatible with the regulatory environment that governs banks and other financial institutions. By focusing on permissioned infrastructure rather than public networks, the partners are targeting institutions that require greater control over participant access and transaction oversight. The testing phase suggests the solution is not yet commercially deployed but is moving toward readiness.
No specific timeline for a full launch has been disclosed, nor have details been provided about which financial institutions may be involved in the testing process. The stated aim remains to simplify blockchain adoption and support programmable payment capabilities for banks looking to modernize settlement processes within compliant structures.
Originally reported by CoinDesk.
