U.S. Regional Banking Alliance Taps zkSync For Tokenized Deposit Network - Crypto Economy

Layer-2 network ZKsync announced the launch of Cari Network, a new infrastructure developed in partnership with five U.S. regional banks aimed at bringing traditional bank deposits onto blockchain rails.

The project runs on “Prividium,” a proprietary technology stack designed for financial institutions that prioritizes private execution and regulatory compliance within the Ethereum environment. Participating institutions include Huntington Bancshares, First Horizon, M&T Bank, KeyBank, and Old National Bancorp.

The model introduces tokens backed by real bank deposits, meaning funds remain on the balance sheets of participating institutions. As a result, those deposits stay under traditional regulatory oversight and maintain coverage from the Federal Deposit Insurance Corporation, which reduces regulatory friction compared to other crypto-based solutions.

The architecture allows banks to execute transactions instantly and continuously, with full 24/7/365 availability. At the same time, the system protects sensitive data and supports auditability, two requirements that financial institutions demand before adopting blockchain infrastructure. In addition, the network enables interoperability with digital systems while preserving internal controls and compliance frameworks.

Support from the banking sector also reinforces the initiative. The Mid-Size Bank Coalition of America stated that the model keeps deposits inside the banking system while modernizing settlement processes. Its CEO, Brent Tjarks, indicated that the structure allows banks to operate more efficiently without altering their traditional funding base.

Industry estimates suggest that more than $8 trillion in deposits held by U.S. regional banks could gradually transition toward tokenized models if institutional adoption accelerates. ZKsync plans to expand Cari Network into a broader production phase throughout 2026.

Source: Based on official announcement from ZKsync.

Disclaimer: This content is for informational purposes only and does not constitute financial or investment advice. Blockchain technologies and digital assets involve risks and remain subject to evolving regulatory frameworks.