Five U.S. Banks Launch Cari Network for Tokenized Deposits

A consortium of five major U.S. regional banks announced the launch of the Cari Network on Tuesday, a blockchain-based platform designed to enable instant settlement of tokenized customer deposits while keeping funds within the regulated banking system. The initiative, built on the ZKsync Layer 2 network, represents a collaborative effort by traditional financial institutions to modernize payment processing and compete with nonbank digital assets.

The Cari Network allows participating banks to convert standard customer deposits into digital tokens that can transfer in real time between verified institutions. Unlike stablecoins issued by companies such as Tether and Circle, these tokens remain liabilities on the banks' balance sheets, qualifying for Federal Deposit Insurance Corporation coverage and adhering to existing regulatory frameworks. Transactions occur on Prividium, a private, permissioned blockchain developed by Matter Labs, the creators of ZKsync. This setup ensures privacy for sensitive data, which stays within each bank's internal systems, while providing tamper-evident audit trails for regulators.

The involved banks include Huntington Bancshares, First Horizon, MT...