What is ZK fiat?

Adam Cazes
May 15
5 min read

At Gero Dashboard, we’re excited to introduce ZK Fiat—a cutting-edge solution designed to bring privacy-first fiat transactions to the Cardano ecosystem. By leveraging zero-knowledge proofs (ZKP), ZK Fiat allows users to securely make fiat transactions on the blockchain while keeping their sensitive financial details private.

ZK Fiat: A Step Forward for the Cardano Ecosystem

The concept of ZK Fiat was developed as part of our broader vision to seamlessly integrate DeFi solutions with traditional banking, ensuring that privacy and security are never compromised. The result is ZK Fiat—a system that uses zero-knowledge proofs to let users connect their bank accounts to the blockchain, make transactions, and maintain full control over their data.

Initially, ZK Fiat will operate exclusively on the Cardano blockchain. This new tech doesn’t just work within Cardano wallet environments; it seamlessly integrates with Gero Dashboard’s Bank API, allowing users to link their bank accounts to the blockchain. This integration is a critical part of our vision for a seamless connection between fiat and crypto, where users can transition easily between both worlds without compromising security or privacy. We’re also thrilled to have partnered with Satchel, a leading digital bank, to help make this connection secure and efficient.

Satchel.eu, our digital bank and exchange partner

ZK Fiat: Privacy-First KYC Integration

As part of our commitment to privacy, ZK Fiat will implement a decentralized identity management system, where KYC verification is done without a single entity holding all the information. Here’s how it works:

User: The user receives KYC proof from the bank and holds the information related to their identity.
Wallet: The wallet generates a bankID for the user and is not privy to the user’s KYC details or their relationship with the bank.
Bank: The bank holds the KYC info and can verify it, but it doesn’t know how the userID and bankID are related, ensuring that no central authority has access to all user data.

This system ensures that users retain full control of their identity and their KYC proof without relying on any centralized authority, which can be a potential point of failure or privacy risk. With ZK Fiat, we give the user the power to prove their identity when needed while keeping all the information private and secure.

Bank Integration + ZK Fiat: The Future of DeFi

The magic happens when you combine ZK Fiat with our Bank API. This allows for fiat-backed transactions on the Cardano blockchain, while also ensuring that your crypto asset security is never compromised. By linking your bank account to your non-custodial wallet, you can easily access DeFi solutions and move between crypto and fiat without jumping through hoops.

We’re especially excited about our first Cardano partnership with Satchel.eu, a digital bank that plays a key role in enabling seamless fiat-to-crypto integration. This partnership allows us to offer a secure and efficient way for users to bridge the gap between traditional banking and blockchain-based assets.

But we’re not stopping there—we’ll be implementing ZK Fiat on the Midnight Network in the future, which will add an extra layer of privacy and data protection. This integration will further enhance the privacy-first nature of ZK Fiat, making it possible for users to enjoy even greater privacy and security when making transactions.

Why ZK Fiat is a Game Changer

Total Privacy: Thanks to zero-knowledge proofs, ZK Fiat lets you prove the validity of a transaction without revealing your personal info. Your data stays private, just how it should be.
Bank API + DeFi Made Simple: By connecting your traditional banking system to your Cardano wallet, ZK Fiat makes interacting with both worlds as easy as a few clicks.
Security You Can Trust: Whether you're managing ADA tokens, staking, or interacting with Cardano token staking, ZK Fiat makes sure your assets are as secure as possible.
More Access to DeFi: ZK Fiat lets you access a broader range of blockchain rewards programs and crypto governance tools while still using your traditional bank account.

ZK Fiat: Privacy-First KYC Integration

User: The user receives KYC proof from the bank and holds the information related to their identity.
Wallet: The wallet generates a bankID for the user and is not privy to the user’s KYC details or their relationship with the bank.
Bank: The bank holds the KYC info and can verify it, but it doesn’t know how the userID and bankID are related, ensuring that no central authority has access to all user data.

This system ensures that users retain full control of their identity and their KYC proof without relying on any centralized authority, which can be a potential point of failure or privacy risk. With ZK Fiat, we give the user the power to prove their identity when needed—while keeping all the information private and secure.

Diagram illustrating ZK Fiat's privacy-first KYC solution with Satchel.eu integration. The User holds KYC proof from the bank, while the Wallet lacks KYC data and cannot verify proof. The Bank holds KYC info and can verify it, but doesn't know the relationship between userID and bankID. This decentralized approach ensures the user maintains full control of their identity while remaining anonymous.

Bank Integration + ZK Fiat: The Future of DeFi

The magic happens when you combine ZK Fiat with our Bank API and Satchel.eu will be our first partners. This allows for fiat-backed transactions on the Cardano blockchain, while also ensuring that your crypto asset security is never compromised. You can easily access DeFi solutions and move between crypto and fiat without jumping through hoops by linking your bank account to your non-custodial wallet.

Why ZK Fiat is a Game Changer for ADA

Total Privacy: Thanks to zero-knowledge proofs, ZK Fiat lets you prove the validity of a transaction without revealing your personal info. Your data stays private, just as it should be.
Bank API + DeFi Made Simple: By connecting your traditional banking system to your Cardano wallet, ZK Fiat makes interacting with both worlds as easy as a few clicks.
Security You Can Trust: Whether you're managing ADA tokens, staking, or interacting with Cardano token staking, ZK Fiat makes sure your assets are as secure as possible.
More Access to DeFi: ZK Fiat lets you access a broader range of blockchain rewards programs and crypto governance tools while still using your traditional bank account.

Looking Ahead: More to Come with Midnight Network and DeFi

With ZK Fiat on the horizon, we're taking the next step toward a more secure and privacy-first financial future and an easier way to on and off ramps. By integrating with the Midnight Network in the future, we're building a platform where users can interact with both fiat and crypto seamlessly, while ensuring complete privacy and control.

We're excited to see where this tech will take us and will keep you updated as we continue to innovate in the Cardano ecosystem. If you're ready to explore the future of Web3 wallet solutions, multi-chain wallets, and DeFi, stay tuned—we’ve got a lot more in store.