BitGo and ZKsync launch blockchain platform to tokenise bank deposits by 2026

BitGo and ZKsync are developing a blockchain platform to help banks tokenise fiat deposits. The system aims to modernise payments by offering faster transactions and tighter security. Testing is underway, with a full launch expected in 2025 and market readiness by 2026. The new platform uses ZKsync's Prividium, a private blockchain designed for regulated financial institutions. Unlike many blockchain payment projects, it does not rely on stablecoins. Instead, tokenised deposits remain within the traditional banking system, reducing risks associated with external digital assets.

Banks using the system will gain 24/7 access, instant settlements, and programmable payment options. Security is also enhanced through advanced encryption and permissioned access. BitGo, known for its multi-signature wallet technology, has been active in crypto since 2013 and currently trades at $10.00 per share, up 2.16% on the day. The target market for this infrastructure is vast, covering a $450 trillion traditional finance sector. While testing is ongoing, no specific banks have been named as participants yet.

The platform's rollout will begin in late 2025, with full market readiness set for 2026. Banks adopting the system could see faster, more secure transactions without needing stablecoins. The project marks a significant step in bridging traditional finance with blockchain technology.