Tokenized deposits advance as Cari Network tests ZKsync

Cari Network is a bank-native tokenized deposit network on ZKsync

Cari Network is designed as a bank-native tokenized deposit platform built on ZKsync. It represents commercial bank deposits as on-chain tokens while keeping issuance, redemption, and record-keeping inside the traditional banking perimeter.

By using bank liabilities rather than free-floating crypto assets, tokenized deposits aim to deliver 24/7 programmability and finality without stepping outside prudential oversight. The structure is intended to align with existing safety, soundness, and consumer-protection expectations for U.S. banks.

Why it matters: tokenized deposits enable regulated, always-on settlement

Tokenized deposits can enable near-instant settlement for payments, treasury operations, and interbank transfers while preserving bank-grade controls. Programmability on ZKsync may support automated workflows, reconciliation, and auditability across institutions.

according to the Conference of State Bank Supervisors, many state-chartered banks are exploring tokenized deposit projects via consortium or shared-ledger models, and have formally asked federal agencies for clarity on regulatory treatment. That industry posture underscores demand for faster rails that remain within the existing supervisory framework.

“Innovation in news/hashkey-hkex-listing-digital-assets/”>digital assets should strengthen, not displace, the regulated banking system. Tokenized deposits, built on sound blockchain infrastructure, can modernize payments while keeping insured deposits at the core of economic activity,” said Gene E. Ludwig, former U.S. Comptroller of the Currency.

A group of regional institutions is coordinating on a pilot phase to test regulated, always-on settlement using tokenized deposits. The collaboration model emphasizes interoperability across banks rather than a single-issuer approach.

M&T Bank’s digital assets lead framed the governance model succinctly: “M&T is participating in the Cari Network on equal footing with peer banks to explore how tokenized deposits can enable regulated, always-on settlement.”

Regulatory posture, participants, and rollout roadmap

Intended bank-deposit treatment and oversight within banking framework

Based on reporting by HokaNews, U.S. guidance indicates that when tokenized deposits are issued by FDIC-insured banks, they are proposed to be treated similarly to traditional deposits, preserving legal protections such as insurance and fraud controls. That treatment would keep tokens as bank liabilities subject to existing prudential standards and compliance obligations.

CSBS has also noted that banks seek clarity from the FDIC, Federal Reserve, and OCC on participation rules and supervisory expectations for tokenization networks. The request highlights the importance of deposit classification, operational resilience, and consumer protection as projects mature.

ZKsync role, five regional banks, MVP March 2026 to pilot

As reported by Ledger Insights, ZKsync is collaborating with five U.S. regional banks, Huntington, First Horizon, M&T, KeyCorp, and Old National Bank, on the Cari Network, with an MVP targeted for March 2026 followed by a pilot. ZKsync’s infrastructure is aimed at enabling programmable, privacy-preserving settlement while banks retain custody, KYC/AML, and redemption controls.

FAQ about tokenized deposits

Which U.S. regional banks are participating and what does ‘equal footing’ among banks mean?

Huntington, First Horizon, M&T, KeyCorp, and Old National Bank. Equal footing means peer participation with shared governance and access, rather than a single bank controlling issuance or rules.

Are Cari Network tokens FDIC-insured and how are they different from stablecoins?

When issued by FDIC-insured banks, deposit tokens are intended to be treated as insured deposits. Unlike stablecoins, they remain bank liabilities within existing oversight and redemption processes.