A consortium of major U.S. regional banks is developing the Cari Network, a groundbreaking tokenized deposit platform built on the ZKsync Era layer-2 network. Announced on Tuesday, the initiative involves banks including Huntington Bancshares, First Horizon, M&T Bank, KeyCorp, and Old National Bancorp, with backing from the Mid-Size Bank Coalition of America (MBCA).
The core objective is to allow banks to convert customer deposits into digital tokens that can be transferred instantly between participating institutions. A key distinction from stablecoins is that these tokens represent regular bank deposits, meaning the funds remain on banks' balance sheets, subject to existing regulations and FDIC insurance. This design ensures the money never leaves the regulated banking system.
The network will operate on "Prividium," a private, permissioned blockchain built by Matter Labs, the primary developer of ZKsync. This infrastructure restricts access to approved participants (like banks) and is designed for fast, private transactions while still allowing regulatory audits when necessary.
The effort reflects a strategic push by regional banks to modernize payments infrastructure, offering the speed and 24/7 settlement of crypto-native systems but within established regulatory frameworks. This move is seen as a response to competitive pressure from both large national banks and fintech companies, aiming to prevent deposit outflows to digital alternatives.
"Banks should be leading the next phase of digital money, not reacting to it," stated Cari CEO Gene Ludwig. Matter Labs CEO Alex Gluchowski added, "With Prividium, banks can issue and move deposits on blockchain infrastructure while preserving the privacy, compliance, and control required by regulated institutions."
The Cari Network is scheduled for a broader rollout in 2026, following an initial pilot phase. The involved banks will test the creation, transfer, and redemption processes for these tokenized deposits.
