Regional Banks Launch FDIC-Insured ZKsync Network for Tokenized Deposits
Five regional banks—Huntington, KeyCorp, First Horizon, M&T Bank and Old National—unveiled the Cari Network, a ZKsync-based blockchain payment rail for instant settlement of tokenized deposits with FDIC insurance. Tokens on the Cari Network remain bank liabilities and challenge nonbank issuers like Circle, with lenders targeting a Q3 2026 rollout.
1. Consortium Launch
Five regional banks—including Huntington Bancshares, KeyCorp, First Horizon, M&T Bank and Old National Bancorp—have formed a consortium to launch the Cari Network. This blockchain-based payment rail is built on ZKsync and aims to enable instant settlement of tokenized deposits within the banks’ insured perimeter.
2. Technology and Compliance
The Cari Network leverages Matter Labs’ Prividium technology, a private, permissioned ZKsync layer-2 solution, to process transactions with zero-knowledge proofs. Unlike traditional stablecoins, tokens issued on the network remain liabilities of the issuing bank, maintaining FDIC insurance eligibility and regulatory compliance.
3. Strategic Impact
By targeting a Q3 2026 rollout, the consortium seeks to stem deposit outflows to crypto-native stablecoins and reclaim the settlement layer from nonbank issuers like Tether and Circle. Success could reshape institutional crypto infrastructure and pressure existing stablecoin market share.