ZKsync partners with LNET to expand blockchain in Latin America

In accordance with Bijiwang, ZKsync, a leading Ethereum Layer-2 scaling solution, has partnered with non-profit blockchain infrastructure builder LNET to expand its presence in Latin America. The collaboration aims to deploy privacy-focused blockchain systems for governments and institutions, particularly for results-based financing (RBF) projects. ZKsync's zero-knowledge (ZK) proof technology enables verifiable outcomes without exposing sensitive data, a critical feature for RBF initiatives requiring both transparency and confidentiality. The partnership highlights a broader trend of blockchain adoption in public financial systems. LNET, previously known as LACChain and LACNet, brings strong regional influence to support ZKsync's institutional market expansion. The alliance is expected to enhance the scalability and privacy of government financial projects, especially in regions where blockchain adoption is accelerating. ZKsync's move into Latin America is part of its token model transition, shifting the ZK token from a governance asset to one tied to the network's economic activity. This change reflects growing demand for token utility in decentralized systems, particularly in regions where blockchain offers tangible benefits such as data privacy, faster settlement, and institutional-grade infrastructure. The collaboration will deploy ZKsync's Prividiums, a private zero-knowledge proof chain designed for institutional users. These chains can securely and confidentially execute financial programs, with final proofs settled on the Ethereum mainnet. This dual-layer structure ensures compliance while maintaining the advantages of decentralized validation. LNET's Chief Business Officer Melody Celestin emphasized the importance of data privacy in public finance projects, where governments need to verify results without exposing citizen or institutional data. ZKsync's technology achieves this through zero-knowledge proofs, allowing verification without revealing underlying data. This feature is especially crucial for RBF projects, where subsidies are tied to verifiable outcomes. According to industry experts, ZKsync's expansion into Latin America aligns with the region's growing demand for blockchain solutions. Countries in the region are exploring blockchain applications ranging from cross-border payments to government oversight. In the face of inflation and currency instability, blockchain-based systems offer a way to streamline financial processes and reduce intermediaries. The region's institutional demand and competitive landscape are also driving the adoption of Layer-2 solutions. While Ethereum remains the dominant layer for smart contract execution, the need for privacy, scalability, and compliance is increasing demand for specialized Layer-2 networks. ZKsync's focus on institutional-grade infrastructure gives it a competitive edge, especially as it transitions the ZK token to a utility-based model. The rapid adoption of blockchain in the region is also being driven by large financial institutions and enterprises. For example, Wall Street giant DTCC has begun developing a tokenized collateral platform to improve operational efficiency and reduce settlement times. Similarly, companies like Paxos are acquiring wallet startups to expand custody services and meet growing institutional demand for on-chain asset management. ZKsync's expansion into Latin America comes as other projects also make significant progress in the region. Decentralized lending protocol Mutuum Finance has raised nearly $20 million and has over 19,000 holders. Its mtToken system allows users to earn rewards based on interest repayments, creating a natural annual percentage yield (APY) mechanism that has drawn attention in the DeFi space. For investors, the growing adoption of ZKsync and other Layer-2 solutions indicates a maturing blockchain ecosystem where institutional demand is outpacing consumer-driven use cases. The shift of the ZK token from a governance asset to a utility-based model may also impact its valuation, as token economics become more directly tied to network usage and transaction fees. This transition could attract more institutional investors, especially in markets where blockchain is being used to modernize public finance. The ZKsync-LNET partnership also highlights the importance of privacy-preserving infrastructure in blockchain applications. As governments and institutions deploy more blockchain-based projects, the demand for systems that are both confidential and verifiable will continue to rise. ZKsync's zero-knowledge approach offers an attractive solution, allowing stakeholders to confirm results without exposing sensitive data. Looking ahead, ZKsync and LNET plan to pilot results-based financing (RBF) systems with government partners before expanding to broader institutional applications. Details on related documentation and Prividium deployment are expected to be released in early 2026, laying the groundwork for wider adoption of the platform in the region. As Latin America emerges as a key market for blockchain innovation, this partnership could serve as a model for other Layer-2 solutions seeking to scale in the institutional space.