TLDR
- A group of U.S. regional banks is building the Cari Network on ZKsync to tokenize customer deposits.
- The platform will allow banks to transfer tokenized deposits instantly between approved institutions.
- Participating banks will keep tokenized deposits on their balance sheets under existing regulations.
- The deposits will remain subject to FDIC insurance and standard banking oversight.
- Matter Labs is developing the private Prividium blockchain to power the network.
A coalition of U.S. regional banks has unveiled the Cari Network, a tokenized deposit platform built on ZKsync. The project aims to modernize digital payments while keeping deposits inside the regulated banking system. The banks plan to test the network through 2026 before a broader rollout.
Regional Banks Advance Tokenized Deposits Strategy
Huntington Bancshares, First Horizon, M&T Bank, KeyCorp, and Old National Bancorp are developing the Cari Network. The platform will allow banks to convert customer deposits into digital tokens. These tokens will move instantly between participating institutions.
The tokens will continue to represent standard bank deposits. Therefore, banks will keep the funds on their balance sheets. The deposits will remain subject to existing regulations and FDIC insurance coverage.
Cari stated that this structure separates its model from stablecoins. Stablecoins often operate outside traditional banking frameworks. In contrast, Cari’s tokens will function entirely within regulated institutions.
The Mid-Size Bank Coalition of America has backed the initiative. The coalition confirmed its support in a recent blog post. It said regional banks want faster payment systems without losing deposits to digital alternatives.
Cari CEO Gene Ludwig addressed the initiative in a statement. He said, “Banks should be leading the next phase of digital money, not reacting to it.” He added that regulated institutions can modernize payments while preserving trust.
ZKsync Infrastructure Powers Private Blockchain Network
Matter Labs, the primary developer behind ZKsync, is building the underlying infrastructure. The network will operate on “Prividium,” a private and permissioned blockchain. Only approved participants, including banks, will gain access.
Prividium will enable fast transactions while maintaining privacy controls. At the same time, regulators will retain the ability to audit activity when required. Matter Labs designed the system to meet compliance standards.
Alex Gluchowski, CEO of Matter Labs, explained the approach in a blog post. He said banks can issue and transfer deposits on blockchain infrastructure. He stated that Prividium preserves privacy, compliance, and institutional control.
The Cari Network will test how banks create and transfer tokenized deposits. It will also examine how users convert tokens back into regular U.S. dollars. The participating banks expect to complete broader deployment in 2026.
Banks involved in the project aim to provide round-the-clock settlement. They also seek to match the speed of crypto-native payment systems. However, they will maintain oversight within established regulatory frameworks.
The announcement marks a coordinated effort among regional lenders. The banks will continue testing operational processes over the coming months. The broader rollout of the Cari Network remains scheduled for 2026.
The post Regional Lenders Launch Tokenized Deposits on ZKsync appeared first on Blockonomi.
Source: https://blockonomi.com/regional-lenders-launch-tokenized-deposits-on-zksync/
