US Regional Banks Embrace Tokenized Deposits Through ZKsync
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The financial landscape is witnessing a notable shift as regional banks in the United States begin adopting modernized tokenized deposit systems. Cari Network has announced its collaboration with ZKsync’s Prividium infrastructure to develop a platform that facilitates on-chain payments, resembling the functionality of stablecoins.
Under the guidance of Gene Ludwig, former U.S. Comptroller, Cari Network aims to create a secure environment where banks can manage and transact tokenized deposits continuously, maintaining these deposits as liabilities on their balance sheets. This initiative represents a significant response to the legislative conversations surrounding stablecoin frameworks, including the proposed Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.
In discussions regarding this development, Alex Gluchowski, CEO of ZKsync, emphasized that mid-sized banks are currently at risk of being sidelined in the evolving financial infrastructure. He pointed out that by leveraging this network, these banks can take an active role in the ongoing transformation rather than becoming obsolete.
Since February, five regional banks—including Huntington Bancshares, First Horizon, M&T Bank, KeyCorp, and Old National Bancorp—have been engaged in the testing and design phases of this initiative, showcasing their proactive approach to innovation in the banking sector. The Mid-Size Bank Coalition of America has endorsed this model, stressing the importance of retaining deposits within regulated entities to benefit small businesses and bolster local economies.
Cari Network’s tokens are designed to reflect existing customer deposits while ensuring that transactions adhere to the banks’ risk and compliance protocols. This controlled environment is intended to prevent the tokens from entering the decentralized finance (DeFi) space where they may be prone to volatility.
The Prividium platform aims to enhance privacy and control over data, serving as a shared ledger that supports instant settlements among verified participants. Notably, it separates transaction records from personally identifiable information, which remains securely within each bank’s systems.
Despite challenges in maintaining user engagement over the past year, ZKsync is focusing its roadmap on catering to institutional needs. Their goals for 2026 emphasize privacy, regulatory compliance, and interoperability, which they consider essential for banks and governmental institutions.
Gluchowski asserted that while some banks are venturing into stablecoin issuance, tokenized deposits should be viewed as complementary solutions. He foresees these deposits as essential components facilitating transactions within banks’ private networks.
As more regional banks explore the potential of tokenized deposits, this initiative could represent a pivotal change in how they manage and process customer funds, signaling a new era in the banking sector’s relationship with digital currencies.
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