Regional Banks Develop Tokenized Deposit Network on ZKsync

A group of U.S. regional banks is making a significant move in the world of digital payments. By developing the Cari Network, a tokenized deposit platform built on ZKsync, these lenders are seeking a regulated path to modernize their offerings.

The network involves major players such as Huntington Bancshares, First Horizon, M&T Bank, KeyCorp, and Old National Bancorp. At its core, the system is designed to allow banks to convert customer deposits into digital tokens that can be transferred between institutions instantly, all without leaving the banking system.

This approach differs from stablecoins issued by nonbank companies, as Cari's tokens will represent regular bank deposits, staying on balance sheets and subject to existing regulations and FDIC insurance. The underlying technology, Prividium, is a private, permissioned blockchain built by Matter Labs, the main developer firm behind ZKsync.

Only approved participants, like banks, can use Prividium, which enables fast and private transactions while allowing regulators to audit activity when needed. This effort reflects the growing push by banks to compete with crypto-native payment systems by offering similar speed and round-the-clock settlement within familiar regulatory guardrails.