BitGo, which offers a crypto asset custody service, and ZKsync, an Ethereum-based scaling protocol, started to develop a new infrastructure solution for banks. These two technology companies are working together on a platform that will enable financial institutions to transition to blockchain-based money transfer processes within the legal framework.
BitGo serves major customers in digital asset storage and transfer. ZKsync, on the other hand, is known for its Layer 2 scaling technologies that offer high processing speeds and low costs. The collaboration of both companies aims to establish a blockchain infrastructure specific to banks, fully compatible and open to audit.
Tokenized Deposit Step for Banks
Tokenized deposits, which have recently come to the fore in the crypto ecosystem, pave the way for banks to manage deposits as digital assets on the blockchain. While this method ensures that the funds remain within the banking system, it can offer the programmable transaction advantages of cryptocurrencies to banks. Unlike stablecoins, tokenized deposits preserve the existing regulatory regime, paving the way for the development of innovative financial products.
In the statement, it was stated that the developed infrastructure started to be tested together with regulated financial institutions. It was stated that the innovative platform allows banks to provide payment services via blockchain in accordance with audit processes, without having to establish complex blockchain systems on their own.
Aiming for Digital Transformation Compatible with Comprehensive Infrastructure
In recent years, the financial sector has been approaching the reliable infrastructure it needs to integrate traditional assets with blockchain technology from different perspectives. The stack developed by BitGo and ZKsync can offer all steps of a blockchain-compatible service package to banks and other financial institutions. In this way, institutions can accelerate their digitalization processes without the need for large-scale transformation of their own systems.
Among the technical features of the infrastructure, compliance with current regulations stands out. In addition, the platform’s scalability and transaction speed are planned to be at a level that can meet the intensity that occurs in traditional finance applications.
In the announcement made by the companies, it was stated that the new infrastructure is aimed to be used in a wider production environment by the end of the year.
BitGo and ZKsync management reported that the solution has already been tested by some financial institutions and is intended to become widespread in a short time.
Collaboration with banks in crypto-based payment applications has become more visible in the industry recently. This development can serve as an important example for financial institutions’ adaptation to new technologies.
