Emergence of blockchain infrastructure customized for financial institutions

Cryptocurrency custody service company BitGo and blockchain platform ZKsync have joined hands to build tokenized deposit infrastructure for banks. According to related industry reports, the two companies provide an integrated solution that allows financial institutions to operate traditional funds on blockchain without deviating from regulatory boundaries.

This collaboration combines BitGo's institutional custody and wallet service with GK Sync's 'Prividium'. Freevidium is a permissioned, privacy-preserving blockchain designed for regulated institutions, enabling banks to issue, transfer, and settle tokenized deposits while maintaining compliance and control.

Why ‘tokenized deposit’

Tokenized deposits are emerging as a new trend among banks experimenting with blockchain-based payments. Unlike stablecoins, which generally exist outside the traditional financial system, tokenized deposits keep funds within the traditional banking system. The key advantage of this is that programmable trading becomes possible without changing the existing regulatory system.

“Tokenized deposits are a way for banks to bring funds on-chain without leaving the regulatory system,” said Alex Gluchowski, CEO of Matter Labs, the developer of GK Sync.

Lowering the threshold for blockchain adoption in the financial sector

This move reflects the trend of cryptocurrency infrastructure companies targeting banks by packaging blockchain functions into compliance-friendly systems. This opens the way for financial institutions to introduce blockchain technology without having to build and manage a complex on-chain architecture.

According to both companies, this integrated solution is already being tested with regulated financial institutions and is aiming for full-scale commercialization within this year.