zkSync

**The shift to instant settlement is reshaping finance.** Stablecoins have already begun transforming payment systems, and tokenized deposits are positioned to be the next major development. **Key developments:** - Tokenized deposits will allow institutions to issue regulated digital money - These digital assets can move in real time across markets and international borders - Industry experts predict tokenized deposits could become the fastest growing onchain asset class **Why this matters for banks:** Tokenized deposits offer financial institutions a way to remain competitive in the evolving digital assets economy. Unlike stablecoins, which operate outside traditional banking systems, tokenized deposits enable banks to issue their own regulated digital currency while maintaining compliance frameworks. **The broader context:** This development follows the success of stablecoins as onchain settlement tokens. The technology represents a move toward more efficient, integrated financial infrastructure that can operate 24/7 without the delays of traditional settlement systems. Institutions are beginning to recognize that real-time settlement capabilities will be essential for competing in digital finance.

**Institutional-Grade Security Through Zero-Knowledge Technology** Financial institutions are demanding protocol-level security that protects against invalid transactions, according to Ozhar, VP of Business Development, speaking on a recent panel. **Key Requirements:** - Banks require rigorous security verification at the protocol level - ZK technology provides both privacy and execution integrity - Institutions prioritize math, audits, and track records over narratives **Compliance-First Approach:** The latest ZK implementations include verification hooks that enable: - Private transactions with maintained audit trails - Protection of trade strategies and prevention of front-running - Compliance department approval through transparent verification This cryptography-first approach has been battle-tested at scale, offering privacy without compromising security—addressing the core concerns of institutional capital entering the crypto space.

The **UAE Dirham is now operational** on ADI Chain's DDSC platform, marking a significant milestone for regulated digital finance in the region. **Key Details:** - Initiated by IHC and First Abu Dhabi Bank - Approved and licensed by the UAE Central Bank - Built on ZKsync infrastructure for high-value transactions - Part of ADI Chain's goal to onboard 1 billion users by 2030 The platform targets underserved markets across the Middle East, Asia, and Africa, providing blockchain access to regions with limited financial infrastructure.

**ZKsync's Season 1 Staking Pilot is now live**, introducing a delegate-to-stake mechanism built with Tally that ties $ZK rewards to active governance participation. **Key mechanics:** - Rewards only flow when $ZK is delegated to an *active* Delegate - No active delegation = no rewards eligibility - Designed to prevent passive farming and align incentives with real participation **Program structure:** - Season 1: 10M $ZK reward cap, targeting +200M active voting power - Season 2: Conditional 25M $ZK cap, targeting +500M active voting power - Each season runs three months **Why it matters:** Governance serves as ZKsync's security layer for shipping upgrades and managing protocol risk. The pilot tests infrastructure that will support future decentralized sequencer operations while strengthening voting reliability. Over 55M $ZK already locked in the [staking portal](https://vote.zknation.io/dao/stake/direct). Participants must select Delegates marked with an "Active" tag to qualify for rewards.

ZKsync has launched its Delegate-to-Stake portal, with over 55 million $ZK tokens already locked in ahead of Season 1's February 9th start. **Key Details:** - Participants must delegate $ZK to an active Delegate to earn rewards - Season 1 offers 10M $ZK reward cap with a governance target of +200M active voting power - Season 2 (conditional) will offer 25M $ZK rewards targeting +500M voting power - Portal built by [Tally](https://www.tally.xyz/gov/zksync/stake/direct) The ZKnomics Staking Pilot Program aims to test infrastructure for the future decentralized sequencer while strengthening governance participation. Rewards only flow when staked tokens are delegated to active Delegates, aligning incentives with real governance engagement. Stake your $ZK at [vote.zknation.io](https://vote.zknation.io/dao/stake/direct) before Season 1 begins.

ZKsync continues advancing its **Airbender zkVM**, maintaining breakthrough performance in zero-knowledge proof generation for Ethereum. **Key Performance Metrics:** - Proves Ethereum blocks in under 50 seconds on a single GPU - Achieves ~1 second proving time for ZKsync chain blocks - Holds #1 position on the EthProofs leaderboard **Technical Significance:** The team built Airbender as a RISC-V based zkVM from scratch, moving away from older zkEVM architectures. This architectural choice aligns with Vitalik Buterin's suggestion that Ethereum may transition to RISC-V. Real-time ZK proving represents a major advancement - what previously required hours now completes in seconds. This breakthrough enables extended verifiability for blockchain infrastructure. View the latest benchmarks: [ethproofs.org/blocks](https://ethproofs.org/blocks)

**ZKsync has introduced Prividiums**, a new privacy solution designed specifically for institutional adoption of blockchain technology. **Key features:** - Enables institutions to control data location and storage - Allows setting custom rules and permissions for regulatory compliance - Makes privacy the default for enterprise applications - Designed to feel natural for development teams familiar with traditional enterprise infrastructure According to ZKsync representatives, Prividiums offer a pragmatic approach for institutions entering the onchain ecosystem. The solution addresses two critical institutional needs: maintaining privacy while meeting compliance requirements. The 2026 roadmap emphasizes making private application development on ZKsync seamless for enterprise teams, marking a shift toward privacy-first design in institutional blockchain adoption.

**Ethereum's Fusaka upgrade is now live**, marking a significant milestone for network scaling and user experience. **Key improvements include:** - **PeerDAS technology** reduces L2 data costs, enabling lower fees over time - **Gas limit increase** from 45M to 60M boosts L1 throughput by 33% - **R1 passkeys** enable phone-native wallets for better accessibility - **Enhanced proof verification** bandwidth for rollups like ZKsync **What this means:** The upgrade maintains decentralization while dramatically improving scalability. L2 rollups become more efficient with cheaper data availability and expanded bandwidth. **Looking ahead:** Next major upgrade "Glamsterdam" is planned for H1 2026, focusing on MEV transparency, censorship resistance, and privacy enhancements. This positions Ethereum to onboard the next billion users through improved wallet UX and reduced transaction costs across Layer 2 networks.

**Enterprise demand for Layer 2 solutions is growing**, but regulatory barriers remain a major obstacle. At EFDevcon, @gluk64 highlighted a key challenge: **banks, fintechs, and enterprises show strong interest in L2 networks** but struggle to build on public chains due to: - Privacy requirements - Compliance restrictions - Regulatory uncertainty This creates a **product-market fit paradox** - there's clear demand for specialized blockchain solutions, but traditional financial institutions need private or permissioned alternatives. The comment suggests **Ethereum's L2 roadmap** may need to address these enterprise needs through specialized chains that can meet institutional requirements while maintaining the benefits of Layer 2 scaling. *This enterprise adoption challenge could shape the future direction of L2 development.*

ZKsync launches **In Sync with ZKsync**, a new X Spaces series highlighting onchain innovators. The debut episode focuses on: - **Institutional adoption** - **Privacy solutions** - Guest announcements coming tomorrow This series will spotlight builders pushing the onchain frontier forward, starting with conversations around how institutions are embracing blockchain technology. *Stay tuned for guest reveals and join the conversation about the future of institutional crypto adoption.*