As the crypto world moves toward regulated, enterprise-grade applications, a new question is rising across boardrooms and blockchains: Can privacy, compliance, and interoperability truly coexist?
For Alex Gluchowski, co-founder and CEO of ZKsync, the answer lies in zero-knowledge (ZK) technology. The company’s latest breakthrough, the Prividium initiative, could change how institutions adopt blockchain infrastructure altogether.
In a recent conversation with CCN, Gluchowski discussed ZKsync’s collaboration with over 30 major global institutions, including Citi, Deutsche Bank, Mastercard, and two central banks, to explore how enterprises can operate private yet connected blockchains within Europe’s new regulatory environment.
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ZK Technology Solves Banking’s Blockchain Dilemma
For years, banks and major financial institutions have faced a dilemma.
They could either build private blockchains, which are fully controlled, compliant, and secure but isolated from the broader financial ecosystem, or public blockchains, which offer openness and interoperability at the expense of privacy and data control.
That trade-off, says Gluchowski, may finally be over.
He discussed ZKsync’s new whitepaper, the Prividium Initiative, developed in collaboration with more than 30 global institutions, including Citi, Deutsche Bank, Mastercard, and two central banks.
The initiative outlines how enterprises can use zero-knowledge (ZK) technology to operate private, permissioned blockchains that remain connected and interoperable with others without compromising compliance.
“For the first time, it’s possible to bridge the gap between private and public domains using ZK technology,” says Gluchowski.
“Each institution can run its own chain, fully under its control, yet directly connected to others and secured by cryptography, not by trusted intermediaries.”
How Privacy and Compliance Can Coexist
Institutional hesitation toward blockchain adoption has long centered on one issue: how to balance privacy with regulatory transparency.
ZKsync’s Prividium model addresses that tension head-on through a combination of granular access controls and zero-knowledge proofs.
“Institutions can define who can see what, down to individual contracts and accounts,” Gluchowski explains.
“Regulators or compliance partners can have view-only access to specific elements of the system, and receive cryptographic proofs confirming rules were followed, without exposing user data.”
Enterprises can integrate familiar tools like Google Workspace or Okta for authentication, giving them fine-tuned control over visibility rights.
Regulators can then verify that AML, KYC, and sanctions compliance were observed, while only receiving the minimum necessary data.
“It’s privacy with accountability,” says Gluchowski. “Institutions disclose only what’s necessary: no more, no less.”
Tokenized Bank Deposits: The First Real Use Case
Among all the applications discussed in the Prividium report, tokenized bank deposits, or institutional stablecoins, stand out as the most immediate and in-demand.
Large corporations often manage funds across multiple jurisdictions, moving capital between subsidiaries and banks — a process that can still take two to five business days.
Prividium’s model enables instant settlement by allowing banks to issue tokenized representations of deposits that can circulate within and across enterprise networks.
Here’s how it works:
- A company deposits funds in a bank.
- The bank issues tokens representing that deposit, a stablecoin backed by fiat reserves.
- Subsidiaries or partners can transfer these tokens in seconds.
- When users need to redeem tokens, they exchange them at the issuing bank or clear them against other institutions’ tokens.
“It’s programmable, interoperable cash,” says Gluchowski. “And it works directly with banks, not through third-party stablecoin providers.”
This model aligns with the Markets in Crypto-Assets Regulation (MiCA), which encourages tokenized payment systems while demanding compliance and consumer protection, two areas where ZK-based systems naturally excel.
ZK Proofs Turn Ethereum into Finance’s Common Layer
When asked whether this signals a move toward an “institutional Ethereum,” Gluchowski disagrees.
He envisions a future built on connection, not segregation.
“Each institution will have its own permissioned chain, hosting tokenized deposits and other assets, but they’ll all settle on Ethereum,” he says.
“Ethereum is the only truly decentralized and resilient settlement layer, a neutral ground where everyone can meet,” Gluchowski stresses.
Over its ten-year history, Ethereum has recorded zero downtime, which Gluchowski highlights as proof of its reliability as a “credibly neutral” settlement layer.
He envisions a network of networks: each organization running its own chain, connected through ZK proofs and synchronized by Ethereum’s trustless infrastructure.
Building “Incorruptible” Financial Systems
Zero-knowledge cryptography is often portrayed as complex, but Gluchowski compares its security model to that of aviation or healthcare, multiple fail-safe layers designed to protect critical systems.
“ZK is a new cryptographic layer that sits on top of traditional enterprise security,” he explains.
“Even if a system is compromised, the proof layer ensures that no invalid transactions can be confirmed.”
ZKsync calls this “incorruptible financial infrastructure,” an architecture where human errors or security breaches cannot alter the truth recorded on-chain.
Atlas Delivers Real-World ZK Performance
All of this runs on the ZK Stack, the same foundation that powers the public ZKsync Era network.
Private deployments simply use a different configuration, keeping data within enterprise systems rather than publishing it to Ethereum.
In September 2025, ZKsync announced Atlas, its most advanced upgrade yet, reaching over 10,000 transactions per second (TPS) and sub-cent transaction costs.
“Atlas brings unprecedented performance,” says Gluchowski.
“We’ve seen real-world tests hitting 15,000,20,000 TPS, at around $0.001 per stablecoin transfer. It’s not just theoretical anymore, it’s production-ready.”
CBDCs vs. Private Stablecoins
Gluchowski’s stance on central bank digital currencies (CBDCs) is pragmatic: he says zero-knowledge technology could easily power privacy-preserving CBDCs. Still, private stablecoins are likely to remain more agile and competitive.
“In many ways, stablecoins already behave like CBDCs,” he explains.
“They’re just more efficient and innovation happens faster in the private sector.”
He points out that the U.S. has publicly distanced itself from direct CBDC issuance. It preferred to let private entities develop regulated digital currencies instead.
“Private money will always have a technological edge,” Gluchowski says. “And networks like Prividium give businesses the architecture to use it safely and compliantly.”
Connecting the Dots: Compliance, Privacy and Trust
At its core, Gluchowski believes ZKsync’s mission and Prividium’s architecture represent a new kind of financial trust: one verified by mathematics, not intermediaries.
“The future isn’t about choosing between privacy and compliance,” he says.
“It’s about building systems that deliver both and proving it cryptographically.”
As MiCA comes into full effect, ZKsync’s approach may offer a blueprint for how Europe’s institutional blockchain ecosystem evolves. Not by abandoning decentralization, but by reengineering it for the enterprise era.
Mathematics as the New Trust Layer
ZKsync’s Prividium initiative marks more than a technological milestone. It represents a shift in how institutions think about trust, compliance, and connectivity in the blockchain era.
By merging zero-knowledge cryptography with enterprise-grade infrastructure, ZKsync is proving that privacy and regulation no longer need to exist on opposite ends of innovation.
As Europe’s MiCA framework reshapes how financial institutions interact with digital assets, projects like Prividium offer a realistic path forward. Banks, regulators, and developers can participate in the same network without sacrificing control, transparency, or scalability.
If the past decade of crypto was about building open systems, the next one will be about bridging them.
“The foundation of a truly incorruptible financial infrastructure lies in that bridge, which is secured by mathematics, powered by Ethereum, and guided by zero-knowledge proofs,” Gluchowski concludes.
FAQs
The Prividium is a research and development project led by ZKsync in collaboration with over 30 global institutions, including major banks, payment providers, and central banks. It explores how enterprises can use zero-knowledge (ZK) technology to run private blockchains that are still interoperable and compliant with public networks like Ethereum.
Until now, banks and corporations faced a trade-off: build private blockchains that are secure but isolated, or use public blockchains that are open but harder to regulate. Prividium bridges this gap by allowing institutions to maintain privacy, meet compliance standards, and still connect with the broader blockchain ecosystem.
ZKsync uses zero-knowledge proofs, a cryptographic method that allows systems to prove that a transaction or rule is valid without revealing any sensitive data. Enterprises can define who can see what, give regulators view-only access, and prove compliance (like AML or KYC) without exposing confidential information.
Each institution using Prividium runs its own permissioned blockchain, but all networks are anchored to Ethereum, the most decentralized and resilient blockchain to date. Ethereum acts as the neutral settlement layer, synchronizing data and ensuring transparency without compromising institutional privacy.
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
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