Banks Target 2026 Launch for ZKsync-Based Deposits
A coalition of U.S. regional banks is developing a tokenized deposit network on blockchain infrastructure, aiming for a full rollout by 2026. The project, named the Cari Network, includes Huntington Bancshares, First Horizon, M&T Bank, KeyCorp, and Old National Bancorp. It will be built using Prividium, a private, permissioned blockchain developed by Matter Labs, the primary firm behind the ZKsync network.
This system is designed to turn customer deposits into digital tokens that can be transferred instantly between participating institutions. Critically, these tokens represent standard bank deposits, meaning the funds remain on the banks' balance sheets and retain their FDIC insurance coverage. This structure creates a key distinction from stablecoins, which are typically issued by non-bank entities and exist outside the traditional banking system.
New Network Designed as a Regulated Rival to Stablecoins
The initiative, backed by the Mid-Size Bank Coalition of America, represents a strategic push by traditional financial institutions to modernize payment rails. By adopting blockchain technology, these banks can offer the round-the-clock settlement speeds of crypto-native systems while operating within established regulatory guardrails. The primary goal is to enhance inter-bank settlement efficiency and compete with emerging digital payment alternatives without losing customer deposits to non-bank platforms.
The project underscores a proactive approach from the banking sector. As Cari Network CEO Gene Ludwig, a former U.S. Comptroller of the Currency, stated, “Banks should be leading the next phase of digital money, not reacting to it.” Matter Labs CEO Alex Gluchowski added that the platform demonstrates how banks can leverage blockchain while preserving the privacy and compliance required by regulated institutions.
Wells Fargo Signals Entry as Tokenization Trend Grows
The Cari Network is not an isolated effort but part of a wider industry trend toward asset tokenization. Concurrent with the announcement, Wells Fargo, which oversees $1.7 trillion in assets, filed a trademark application for "WFUSD." The filing outlines services for cryptocurrency payment processing and asset tokenization, strongly suggesting the bank is developing its own tokenized deposit or stablecoin platform.
This move mirrors a similar strategy by JPMorgan, which previously launched its JPMD deposit token on the Ethereum layer-2 network Base. The parallel actions from both regional and money-center banks indicate that tokenized deposits are becoming a core strategy for U.S. financial institutions to integrate blockchain technology, positioning it as a fundamental evolution of payment infrastructure.
