ZKsync and Phylax Launch Bank Stack: A Full-Scale Institutional Architecture Built on Ethereum

TLDR:

• Bank Stack operates across three integrated planes: blockchain platform, money and assets, and services and governance layer.

• Prividium enables institutions to run private, compliant transactions while inheriting Ethereum’s security and global settlement guarantees.

• Phylax adds pre-committed assertions and circuit breakers that block unsafe transactions before execution, not after settlement occurs.

• Platforms like Fireblocks already integrate with Prividium, letting banks reuse existing policy stacks for new institutional networks.

Bank Stack is emerging as a new institutional architecture for on-chain finance. ZKsync and Phylax have jointly introduced this framework, anchored on Ethereum and powered by Prividium.

The architecture is designed to address fragmented payment rails, rising compliance costs, and security risks. Financial institutions are no longer debating whether blockchain matters.

They are now choosing which architecture will run their settlement, liquidity, and balance sheet operations.

A Three-Layer Architecture Built for Institutions

Bank Stack operates across three integrated planes. The blockchain platform layer combines Ethereum with Prividium for private execution, compliance primitives, and interoperability.

Above that sits the money and assets layer, which covers tokenized deposits, stablecoins, and real-world assets. The third plane handles services and governance, including identity, custody, policy enforcement, and reporting.

Prividium serves as the institutional transaction layer at the foundation. It is a private, compliant, ZK-powered blockchain that remains anchored to Ethereum.

Institutions run confidential transaction environments while inheriting Ethereum’s security and global interoperability. Execution and data stay private, while ZK proofs posted to Ethereum provide integrity and finality.

ZKsync’s L1 interoperability solution connects any ZK Chain to Ethereum natively. Institutions no longer need to sacrifice governance, privacy, or execution environments for access to public market liquidity.

Prividiums become the first architecture where both can coexist. This removes one of the largest structural barriers to institutional blockchain adoption.

Compliance is built into the infrastructure surface rather than added on top. Prividiums embed permissioned participation, KYC/AML enforcement, and auditability directly into the system.

This shifts compliance from an operational burden to an architectural guarantee. Policy becomes enforceable in production, not just observable.

Circuit Breakers and Onchain Money Primitives

ZKsync shared via its official channel: “The Bank Stack is not a product. It is an institutional architecture for on-chain finance.” Phylax adds execution-time controls through pre-committed assertions and invariant enforcement during block building.

Transactions that violate safety conditions are excluded before execution. This prevents catastrophic states rather than detecting them after settlement.

Phylax also supports on-premises deployment, colocated with block production. There is no critical-path SaaS dependency and no custody of keys or funds.

Private assertions keep internal controls confidential inside an institution. Risk teams, underwriters, and regulators can use verifiable evidence for governance and coverage workflows.

The monetary foundation of Bank Stack includes tokenized deposits, fiat-backed stablecoins, and tokenized cash equivalents. These primitives compose with identity and policy controls.

Real-world assets such as tokenized securities, funds, and collateralized instruments are also supported. Platforms like Fireblocks already integrate with Prividium, allowing banks to reuse existing policy stacks.

Together, Ethereum provides global settlement, Prividium provides private execution, and Phylax provides deterministic operational controls.

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