Secure Inter-Bank Messaging Through Zero-Knowledge Verification on Permissioned Blockchains

Abstract

Digitalizing inter-bank financial transactions requires safe, verifiable, and privacy-preserving communications infrastructures for settlement, liquidity management, and credit risk coordination across regulated institutions. Traditional inter-bank communications systems leak data, overshoot regulations, and have single points of failure due to trusted intermediaries and centralized validation. The study proposes a zero-knowledge verification-based cryptographic and architectural framework for permissioned blockchain network inter-bank security. Without disclosing transaction-level data or confidential financial circumstances, the proposed method allows banks communicate settlement instructions, credit exposure attestations, and compliance assertions while cryptographically proving accuracy, solvency limitations, and policy adherence Zero-knowledge proof systems, permissioned consensus protocols, and fine-grained access control give secrecy, integrity, non-repudiation, and auditability in multi-institutional settings. Protocol design, trust models, cryptographic assumptions, and performance trade-offs may enable zero-knowledge verification for legal transparency and institutional data security. Researchers recommend permissioned blockchain zero-knowledge verification for next-generation inter-bank communication and financial market infrastructure.