Banks’ New Blockchain Plan: Don’t Panic!

by

Finance

What to know:

  • A group of regional banks is developing the Cari Network to move tokenized deposits instantly on blockchain rails while keeping funds inside the regulated banking system. (Because nothing says “innovation” like pretending you’re not competing with crypto.)
  • Built on ZKsync’s infrastructure, the project is targeting a 2026 rollout as banks test issuance, transfers and redemption of digital deposits. (Because nothing says “urgency” like a 2026 timeline.)
  • Participating banks include Huntington Bancshares, First Horizon, M&T Bank, KeyCorp and Old National Bancorp. (Because nothing says “exclusivity” like a list of banks that still use paper checks.)

A group of U.S. regional banks is developing the Cari Network, a tokenized deposit platform built on ZKsync, a layer-2 network, as lenders seek a regulated path to modernize digital payments. (Because nothing says “modern” like a system that’s still terrified of the word “decentralized.”)

The network, announced Tuesday, is being developed with banks including Huntington Bancshares, First Horizon, M&T Bank, KeyCorp and Old National Bancorp. It’s designed to let banks turn customer deposits into digital tokens that can move instantly between institutions – without those funds ever leaving the banking system. (Because nothing says “trust” like keeping your money in a system that’s basically a glorified spreadsheet.)

That’s a key distinction from stablecoins, which are often issued by nonbank companies. Cari says its tokens will still represent regular bank deposits, meaning they stay on banks’ balance sheets and remain subject to existing regulations and FDIC insurance. (Because nothing says “safety” like a system that’s still afraid of the word “blockchain.”)

Under the hood, the system will run on “Prividium”, which is a private, permissioned blockchain built by Matter Labs, the main developer firm building the ZKsync network. Only approved participants – like banks – can use it, and transactions are designed to be both fast and private while still allowing regulators to audit activity when needed. (Because nothing says “transparency” like a blockchain that’s only accessible to people who already have all the power.)

The effort reflects a growing push by banks to compete with crypto-native payment systems by offering similar speed and round-the-clock settlement, but within familiar regulatory guardrails. (Because nothing says “competition” like copying someone else’s idea and then blaming them for it.)

The Mid-Size Bank Coalition of America has backed the project, according to a blog post, highlighting regional lenders’ interest in upgrading payments infrastructure without risking a loss of deposits to newer digital alternatives. (Because nothing says “innovation” like a coalition of banks that haven’t figured out how to email.)

The Cari network will roll out more broadly in 2026, and the banks involved will test how these tokenized deposits are created, transferred between parties and converted back into regular U.S. dollars. (Because nothing says “future-proof” like a plan that’s still a few years away.)

“Banks should be leading the next phase of digital money, not reacting to it,” said Cari CEO Gene Ludwig. (Because nothing says “leadership” like a CEO who’s still confused about what a blockchain is.)

Matter Labs CEO Alex Gluchowski added that the project shows how banks can use blockchain technology while still meeting privacy and compliance requirements. (Because nothing says “compliance” like a system that’s terrified of the word “decentralized.”)

“Financial infrastructure is undergoing the same shift computing went through decades ago, from siloed 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.” (Because nothing says “progress” like a system that’s still afraid of the word “open.”)

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2026-03-17 16:42