Five US banks trial blockchain-based tokenized fiat deposits for faster payments
Five major US regional banks are testing a new blockchain-based system for tokenized fiat deposits. The platform, developed by BitGo and ZKsync, aims to modernise banking transactions with faster settlements and enhanced security. Unlike other blockchain payment projects, this one does not rely on stablecoins. The system uses ZKsync's Prividium, a permissioned blockchain designed for regulated financial institutions. It keeps funds within traditional banking infrastructure while enabling tokenized deposits. This approach contrasts with stablecoins, which operate outside the banking system.
Five banks—Huntington Bancshares, First Horizon, M&T Bank, KeyCorp, and Old National Bancorp—began trials in February 2026. The platform promises 24/7 availability, instant transaction settlements, and programmable payments based on predefined conditions. BitGo's custody and wallet services are integrated to ensure security for institutional users.
The project targets a traditional finance market valued at $450 trillion. Testing is underway, with a full rollout expected later in 2025. Meanwhile, BitGo's stock price rose slightly, closing at $10.00, up 2.16% on the day. The collaboration between BitGo and ZKsync could change how banks handle digital transactions. If successful, the system may offer faster, more secure, and programmable payments without relying on stablecoins. The outcome of the current trials will determine its broader adoption in the banking sector.
