On November 10, 2026, Matter Labs introduced Prividium Connect, software for institutional asset exchanges across separate blockchains. The company says the product has reached mainnet, with support starting on Hyperledger Besu and Prividium Ledger. Its proposed public deployments and integration with the $ZK Fee Flow system still need governance approval.
Connect is for banks, asset managers, custodians and market infrastructures exchanging assets with identified counterparties. It pairs private transaction records with proofs that the agreed conditions were met. Participants choose a common settlement chain: Ethereum, another EVM-compatible chain or a private chain. That chain records the proofs and commitments needed to finalize the exchange. Confidential transaction data stays off it.
Institutions can use Connect to exchange tokenized securities, cash and fund shares without handing assets to a third-party bridge. Matter Labs describes the exchange as atomic: both transfers complete, or neither does. The proposed token-fee arrangement covers canonical public deployments. That approval process is separate from institutions operating the software themselves.
What the exchange enforces
An institution must prove that a transaction’s conditions have been satisfied before the operation can complete. In a securities trade, delivery and payment depend on each other. The same mechanism supports repo transactions, where cash and collateral change hands together. Fund subscriptions and redemptions exchange tokenized cash for fund shares under those conditions. Currency exchanges are also among the stated uses.
Matter Labs says Connect enforces these obligations even if an operator’s transaction-signing systems are compromised. Once an exchange completes on the settlement layer the participants chose, neither party can reverse a completed transfer on its own. These protections are described by the operator; they are not findings from an independent security review of a deployment.
A counterparty receives the information needed for its exchange, such as the assets and amounts involved. Other balances, positions and client identities remain inside the institution’s systems. Each institution controls what else it discloses to auditors, regulators and other authorized recipients. An intermediary does not receive those records to enforce the trade.
If an exchange misses its deadline, the institution can recover the assets it committed. It must act to recover them, but it needs no approval or cooperation from the counterparty. Matter Labs says a counterparty going offline cannot prevent recovery. Collateral deliberately pledged under an agreement remains locked until the agreed release conditions are met. That rule applies even when the assets remain on the pledging institution’s systems.
The announcement distinguishes Connect from interoperability that authenticates messages or another chain’s recorded state. Connect requires proof that execution met the agreed terms, while zero-knowledge proofs keep the underlying records confidential. Matter Labs presents this combination as a way for an institution to accept a transaction without inspecting its counterparty’s private books.
Institutions run connectors beside their ledgers
Each institution runs a connector alongside its existing ledger, inside its own security perimeter. Hyperledger Besu and Prividium Ledger are the initial supported systems. Matter Labs says it will expand support to networks its customers need to transact with. For other institutional environments, it offers a compatibility assessment; it has not announced support for every ledger at launch.
Institutions can reuse the same transaction protocol as they add counterparties. They may operate Connect themselves or choose a provider, while retaining control over integration with their ledgers. Matter Labs says both the underlying ZKsync atomic interoperability protocol and the connector code are available for inspection and independent audit. Its team offers help with evaluation, integration and deployment.
Prividium Commander, the company’s separate software for institutional privacy and control, integrates natively with Connect. Institutions can use the products together or independently. They also do not have to adopt Prividium Ledger: a participant using the supported Besu environment can keep it. Setup starts with a specific transaction and identified counterparties. Participants need not all move onto the same ledger.
The proposed route from fees to $ZK
Matter Labs proposes canonical deployments on public chains under ZKsync governance and security safeguards, including Security Council oversight. The company says the fee switch is built and being audited. Governance must still approve activation, integration and fee parameters. The launch announcement gives no evidence that Connect fees are already being converted into $ZK.
Those fees would go to the Fee Flow system described by ZKsync governance. Its design uses a permissionless fixed-price auction to convert approved fee assets into $ZK. A splitter then applies the allocation settings chosen by governance. An administrator sets how much $ZK a claimant must provide to receive the accumulated fee assets, and the claimant decides when that exchange is worth making.
The auction exchanges approved inventory against the configured $ZK threshold. It neither buys on the open market nor sets a market price. Claimants can receive only approved fee tokens, a restriction the documentation describes as protection against spam or malicious assets. Fees already denominated in $ZK bypass the auction and go directly to the splitter.
The Fee Flow overview gives its launch configuration as a 100% burn allocation, with no other distribution recipients. Governance can change the burn percentage and destinations through its standard process. This is the documented configuration of the system proposed to receive Connect fees. It is not a reading of the system’s current state at a pinned block or evidence that the Connect integration has activated.
The documentation assigns authority over parameters to ZKsync Governance through the ZK Token Governor Timelock. An Emergency Admin role can handle time-sensitive operations, including pausing claims, updating approved tokens and recovering certain misdirected assets. These controls apply to the fee machinery. The proposed Connect public deployments would also fall under the security and governance arrangements described in the launch announcement.
Matter Labs has left activation, integration and fee parameters for those canonical deployments to governance approval. The launch announcement supplies no activation date for that fee arrangement.
