Can zk-SNARKs or zk-STARKs Be Used to Verify the Collateral in a Derivative Contract?

Yes, ZKPs can be used to prove that a specific amount of collateral is locked in a smart contract without revealing the exact amount or the identity of the holder. This allows a decentralized derivatives platform to confirm the solvency and security of a contract while maintaining the privacy of the parties involved, which is highly desirable for institutional participants.