LayerZero Labs, an interoperability protocol connecting over 170 blockchains, and Keeta, a regulated payment and settlement platform, announced a partnership to introduce tokenized commercial bank deposits on Ethereum, Solana, Base, and the Keeta Network. This collaboration aims to provide institutions with the ability to transfer regulated bank deposits seamlessly across multiple public blockchains using LayerZero’s interoperability technology.
Tokenized bank deposits roll out with multi-currency support
Institutions will be able to issue and transfer commercial bank deposits via Bivo, a payment rail and banking network provider, onto several blockchain networks. Initially, these tokenized assets will be backed by U.S. dollars, with support for eight additional currencies—including EUR, JPY, CNY, GBP, CAD, MXN, AED, and HKD—expected by the end of the month. Unlike traditional reserve-backed stablecoins, each token will represent money held directly as a commercial bank deposit through Bivo, linking regulated finance to decentralized infrastructure.
Mini dictionary: Bivo, a payment platform and partner-bank network, bridges commercial bank deposits into blockchain tokens for payment and treasury solutions.
The platform is designed to help institutions conduct payments and manage treasury operations across networks without managing separate token versions or maintaining isolated balances. With LayerZero’s Omnichain Fungible Token (OFT) standard, tokens sent from one blockchain are burned and new tokens are minted on the destination chain, keeping supply consistent and removing the need for wrapped assets or external liquidity pools.
LayerZero has stated that the platform’s OFT framework allows companies to track total supply directly at the contract level across blockchains, ensuring assets are never duplicated and reducing operational complexity.
Issuer controls and security take center stage
Keeta allows issuing institutions to set key operating rules for the tokens, including compliance checks, verification settings, transfer limits, and other regulatory safeguards. Such features are considered essential for commercial bank money, given strict legal and operational responsibilities. LayerZero’s infrastructure manages the cross-chain settlement, but issuers retain decision-making authority over how tokens are issued and used.
Keeta stated that a recent public stress test, conducted with assistance from Google’s Spanner engineering team, reached 11.2 million transactions per second on its dedicated blockchain network. This test showcased the system’s technical capacity but did not directly address adoption by banks or treasury institutions.
Mini dictionary: Keeta is an institutional payments and settlement network seeking to bridge regulated banking infrastructure with public blockchain environments.
Bivo’s involvement allows direct on-chain representation of assets held in regulated financial channels, offering a banking foundation rather than relying on crypto-native reserves. This arrangement also grants participating institutions control throughout the entire transfer process, potentially addressing concerns about fragmented liquidity and inconsistent versions of tokenized assets.
Despite technical advances, the companies have not disclosed forecasted transaction volumes, specific banks participating, or committed institutional partners. Future adoption will depend on market demand and how security settings are configured.
Security concerns and institutional adoption remain unresolved
Questions about adoption persist as neither LayerZero nor Keeta have named banks or provided estimates for usage or transaction volume. Institutional appetite is expected to be influenced by both regulatory frameworks and risk management settings in the infrastructure.
Closer attention to security has followed recent incidents, such as the April 18 KelpDAO exploit, which resulted in attackers draining 116,500 rsETH valued at $292 million. The breach exposed weaknesses in a single-verified protocol setup, prompting LayerZero to discontinue support for the vulnerable configuration and raise default security standards for future deployments. Success of the Keeta rollout may depend on how clients adapt these new default controls.
