LayerZero and Keeta will launch tokenized bank deposit services across Ethereum, Solana and Base

LayerZero and Keeta have partnered to launch cross-chain tokenized bank deposits

LayerZero Labs, an interoperability protocol that connects more than 170 blockchains, and Keeta, a regulated payment settlement platform, announced a cooperation to introduce tokenized commercial bank deposits on Ethereum, Solana, Base and Keeta Networks. The collaboration aims to allow institutions to leverage LayerZero's interoperability technology to seamlessly transfer regulated bank deposits between multiple public blockchains.

Tokenized bank deposits support multi-currency

Institutions will be able to issue and transfer commercial bank deposits on multiple blockchain networks through payment channels and banking network provider Bivo. Initially, these tokenized assets will be supported by US dollars, and are expected to support eight additional currencies including euro, yen, RMB, British pound, Canadian dollar, Mexican peso, United Arab Emirates dirhams and Hong Kong dollars by the end of this month. Unlike traditional reserve-backed stablecoins, each token represents commercial bank deposits held directly through Bivo, thereby connecting the regulated financial system to decentralized infrastructure.

Small Dictionary: Bivo is a payment platform and cooperative banking network that converts commercial bank deposits into blockchain tokens for payment and money management solutions.

The platform is designed to help organizations make payments and manage funds across networks without having to manage different token versions or maintain isolated balances. With LayerZero's full-chain homogenization token standard, tokens sent from a blockchain are destroyed and new tokens minted on the target chain, maintaining consistent supply and eliminating the need for encapsulated assets or external liquidity pools.

Currency network availability:

US dollar-planned
Euro-planned
Japanese yen-planned
RMB-planned
British pound-planned
Canadian dollar-planned
Mexican peso-planned
United Arab Emirates dirhams-planned
Hong Kong dollars-In the plan,

LayerZero stated that its full-chain homogenization token framework allows companies to directly track total supply across blockchains at the contract level, ensuring assets are never duplicated and reducing operational complexity.

Issuer controls and security measures become core

Keeta allows issuers to set key operating rules for tokens, including compliance checks, verification settings, transfer limits and other regulatory safeguards. Given the strict compliance and operational responsibilities, these functions are crucial to commercial bank currencies. LayerZero's infrastructure is responsible for managing cross-chain settlements, but the issuer retains the right to make decisions about the issuance and use of tokens.

Keeta said a recent public stress test conducted with the assistance of Google Spanner's engineering team reached 11.2 million transactions per second on its dedicated blockchain network. The test demonstrated the technical capabilities of the system, but did not directly involve actual adoption by banks or money managers.

Small Dictionary: Keeta is an institutional payment and settlement network designed to connect regulated banking infrastructure with the public blockchain environment.

Bivo's participation allows assets in regulated financial channels to be represented directly on-chain, providing bank-based basic support rather than relying on crypto-native reserves. This arrangement also gives participating institutions control throughout the transfer process, which may help address issues of fragmentation of liquidity and inconsistent versions of token assets.

Despite technological progress, the two companies have not disclosed their forecast transaction volumes, the specific banks they are involved or the institutional partners they have committed. Future adoption will depend on market demand and how security settings are configured.

Security concerns and institutional adoption issues remain to be resolved

Questions about adoption rates remain, and neither LayerZero nor Keeta has announced the name of the bank or provided estimates of usage and transaction volume. Institutional needs are expected to be influenced by regulatory frameworks and risk management settings in infrastructure.

Recent events have heightened concerns about security issues, such as the KelpDAO attack on April 18, in which attackers stole 116,500 rsETH units worth approximately $292 million. The vulnerability exposed a weakness in a single authentication protocol setup, prompting LayerZero to stop supporting the fragile configuration and improve default security standards for future deployments. The success of the Keeta project may largely depend on how customers adapt to these new default controls.