Key Highlights
- ZKsync partners with LNET to power private RBF systems for LATAM governments.
- The move aligns with ZKsync’s shift from governance focus to token utility.
- Institutional demand rises as LATAM accelerates blockchain adoption.
ZKsync, the Ethereum Layer-2 network focused on zero-knowledge proofs, has partnered with LNET, formerly part of LACChain and LACNet, to bring privacy-preserving blockchain infrastructure to governments and major institutions across Latin America.
LNET is a global nonprofit building digital public goods and open blockchain standards for the region.
The partnership focuses on Results-Based Finance (RBF) programs in LATAM, where government payouts depend on verified outcomes, use cases that require the privacy and auditability ZKsync’s zero-knowledge tech provides.
Scaling RBF with data privacy
LNET says governments need confidentiality and verifiable results. Zero-knowledge proofs let agencies confirm outcomes without exposing sensitive data, making RBF programs easier to scale.
By using ZKsync’s Prividiums, private, institution-ready ZK chains, LNET can offer secure execution with protected information, reducing risk for institutions funding RBF projects.
How the partnership works
ZKsync provides the underlying ZK technology, while LNET deploys application-layer infrastructure across its LATAM network. REBF calculations, subsidy triggers, and audit trails will run on private ZKsync instances, and final proofs will settle on Ethereum.
This setup blends privacy, compliance, and cross-chain scalability—critical for governments that must prove outcomes yet protect citizen and agency data. LNET’s CCO, Melody Celestine, highlighted the partnership as a step toward modernizing public finance systems across the region.
The expansion arrives weeks after ZKsync proposed shifting its ZK token from a governance-only asset to one tied to network economics.
LATAM as a target
Latin America’s crypto usage has surged, driven by inflation, unstable currencies, and cross-border payment friction. Companies like Tether and Orionx have scaled operations across Chile, Peru, Colombia, and Mexico as stablecoin adoption hits record highs.
With governments increasingly exploring blockchain for public finance, subsidy distribution, and data verification, LNET’s partnership with ZKsync positions both organizations at the center of a new wave of institutional modernization in the region.
What’s next
ZKsync and LNET plan to pilot RBF systems for government use before expanding to wider institutional cases. Documentation and Prividium rollout details are expected in early 2026.
With LATAM governments adopting blockchain for payments and oversight, ZKsync’s move highlights rising competition among L2s for institutional adoption and growing demand for privacy-ready infrastructure.
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