Five major US regional banks have formed a consortium to develop a blockchain-based payments network aimed at enabling instant settlement of tokenized deposits within the regulated banking system.
The initiative, known as the Cari Network, brings together Huntington Bancshares, First Horizon, M&T Bank, KeyCorp, and Old National Bancorp.
The network is being built on blockchain infrastructure developed by Matter Labs, the team behind the ZKsync platform. Its private, permissioned blockchain, known as Prividium, will act as the underlying ledger.
The project centers on the creation of deposit tokens that represent existing customer deposits, rather than standalone digital assets. Unlike stablecoins issued by crypto-native firms, these tokens remain within the banking system and continue to qualify as regulated liabilities of participating institutions.
Under the model, deposits do not leave the insured banking perimeter and remain eligible for protection from the Federal Deposit Insurance Corporation. Transactions are expected to take place within a permissioned environment governed by banks’ existing risk and compliance frameworks.
Prividium enables real-time settlement between verified counterparties while keeping sensitive customer data within each bank’s core systems. Transaction records and balances are recorded on the shared ledger, with personally identifiable information held separately.
The consortium said the approach is designed to support continuous, 24/7 settlement, while maintaining regulatory oversight and auditability, and allowing for potential interoperability with broader digital asset systems without compromising institutional controls.
Participating lenders are targeting a Q3 2026 rollout amid competition from faster crypto-native alternatives.
