Matter Labs launches private cross-chain swaps on mainnet

Matter Labs launched Prividium Connect on mainnet, giving banks, asset managers and financial market infrastructure providers a way to swap assets privately across their own blockchains “without a trusted intermediary,” according to Matter Labs.

The live product addresses a settlement requirement: participants need linked transfers across separate ledgers to reach one final result while keeping confidential operational records under their own control. Prividium Connect uses zero-knowledge proofs to check agreed terms before settlement.

What does this change for institutions?

The practical change is that privacy and settlement coordination are designed as one operating model. Each institution keeps its confidential records in its own systems. Matter Labs says the setup is intended for transactions across separate ledgers while keeping sensitive operational data within systems they control.

The announcement assigns two distinct functions to the architecture: zero-knowledge proofs establish whether the agreed conditions are met, while institutional systems retain the underlying records. For a treasury or settlement desk, that division limits reliance on a shared custodian of sensitive information and keeps operational data inside systems the participants control.

The second operational consequence is atomic completion. The proof process ensures “both sides complete a transfer together or neither does,” Matter Labs said. A settlement desk therefore does not have to treat one transfer as final while waiting for the second to reconcile.

The distinction is operational: a swap does not settle one leg while leaving the other pending. The linked outcome reaches finality only when both sides satisfy the agreed conditions. The product coordinates settlement without requiring participants to merge their books or records.

For banks, asset managers and market infrastructure providers, the relevant use case is a transfer in which finality and confidentiality must arrive together. The product changes the coordination layer rather than the location of institutional records. That is the practical distinction for teams evaluating the system.

The proposed fee-market shift

A separate Matter Labs proposal could change how public-chain interoperability is funded. The company is seeking a standard deployment on public chains that would route interoperability fees into the ZK economy. The proposal uses the Fee Flow System already deployed on ZKsync Era.

Under the proposal, fees would be converted into ZK through that system. Governance would then determine how the tokens are distributed. The arrangement would connect usage of public-chain interoperability with a funding route for zero-knowledge systems.

Matter Labs has developed the fee switch, and it is undergoing an audit. That makes the public-chain mechanism materially different from the mainnet product. Prividium Connect is live; the fee-routing proposal still depends on the audit and a governance decision on distribution.

The proposal also separates protocol operation from economic allocation. The Fee Flow System provides the conversion mechanism, while governance sets the distribution of the resulting tokens. For market participants, those choices will determine the allocation of converted value among token recipients.

The launch and the fee proposal should not be conflated. The launch demonstrates a private, proof-based settlement product for institutions operating their own blockchains. It does not, by itself, activate the proposed public-chain fee route. The public deployment remains a separate proposal rather than an additional function enabled by the mainnet launch.

For institutions, the near-term change is operational: Prividium Connect offers private, proof-based settlement across controlled ledgers. If the audited fee switch clears and governance sets token distribution, the broader market structure could then shift public-chain interoperability fees toward ZK infrastructure. Until both conditions are met, the fee proposal should not be treated as a live feature.