A group of US regional banks is developing Cari Network, a tokenized deposit platform built on ZKsync, a layer 2 network, as lenders seek a regulated path to modernize digital payments.
The network, announced Tuesday, is being developed with banks including Huntington Bancshares, First Horizon, M&T Bank, KeyCorp and Old National Bancorp and is designed to allow banks to convert customer deposits into digital tokens that can move instantly between institutions, without those funds leaving the banking system.
That’s a key distinction from stablecoins, which are often issued by non-banking companies. Cari says its tokens will continue to represent regular bank deposits, meaning they will remain on banks’ balance sheets and remain subject to existing regulations and FDIC insurance.
Inside, the system will run on “Prividium,” which is a private, permissioned blockchain built by Matter Labs, the main developer of the ZKsync network. Only approved participants, such as banks, can use it, and transactions are designed to be fast and private, while allowing regulators to audit activity when necessary.
The effort reflects a growing push by banks to compete with crypto-native payment systems by offering similar speed and 24-hour settlement, but within familiar regulatory barriers.
The Coalition of U.S. Midsize Banks has endorsed the project, according to a blog post, highlighting regional lenders’ interest in improving payments infrastructure without risking losing deposits to newer digital alternatives.
The Cari network will be rolled out more widely in 2026, and the banks involved will test how these tokenized deposits are created, transferred between parties, and converted back into regular US dollars.
“Banks should be leading the next phase of digital money, not reacting to it,” said Cari CEO Gene Ludwig.
Matter Labs CEO Alex Gluchowski added that the project shows how banks can use blockchain technology while still meeting privacy and compliance requirements.
“Financial infrastructure is undergoing the same shift that computing underwent decades ago, from siled databases to shared, programmable infrastructure,” Gluchowski said in the blog post. “With Prividium, banks can issue and move deposits on blockchain infrastructure while preserving the privacy, compliance and control required by regulated institutions.”
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