In a strategic move to bridge the gap between traditional banking and the burgeoning world of blockchain, Cari Network, a consortium led by former U.S. Comptroller of the Currency Gene Ludwig, has partnered with Matter Labs to deploy Prividium, a cutting-edge infrastructure built on ZKsync, for a tokenized deposit network tailored for U.S. regional and mid-sized banks.
Built on the ZKsync Layer 2 solution and anchored to Ethereum, the platform aims to enable participating banks to issue and transfer tokenized deposits 24/7, all while maintaining these deposits on their balance sheets as bank liabilities, according to a recent release shared with Cointelegraph. This initiative comes at a critical juncture as lawmakers deliberate over frameworks like the GENIUS Act, and stablecoin issuers increasingly encroach on traditional banking roles in payments and deposit funding.
Empowering Regional Banks in the Digital Age
“Financial infrastructure is being fundamentally reimagined, and mid-sized banks are often left behind in this transition,” said Alex Gluchowski, CEO of ZKsync. He emphasized that the Cari Network’s solution is designed to empower these institutions, enabling them to lead the digital transformation rather than be displaced by it.
The network has already garnered support from five prominent U.S. banks—Huntington Bancshares, First Horizon, M&T Bank, KeyCorp, and Old National Bancorp—which have been actively involved in designing and testing the platform since February. The Mid-Size Bank Coalition of America has also endorsed the initiative, highlighting the importance of keeping deposits within regulated institutions to support small business lending and local economies.
Privacy, Control, and Onchain Auditability
Prividium, the core technology behind the Cari Network, serves as a shared ledger that facilitates instant settlement between verified counterparties. A key feature of the platform is its ability to separate transaction records and balances from personally identifiable data, which remains securely stored within each bank’s core systems. This design ensures compliance with stringent U.S. banking privacy and supervisory expectations, including data protection, examiner access, and tamper-evident audit trails.
While ZKsync has faced challenges with user retention in the broader public blockchain space, the company is steering its roadmap towards institutional use cases. The 2026 plan for ZKsync emphasizes privacy, deterministic control, and native interoperability, making it an attractive solution for banks, enterprises, and governments.
Complementary to Stablecoins, Not a Replacement
While some banks have explored the issuance or partnership with stablecoins, Gluchowski argues that tokenized deposits are complementary to stablecoins. He envisions a future where tokenized deposits serve as the primary payment tokens for banks when funds need to move in and out of their private infrastructure. This approach aims to enhance the efficiency and security of financial transactions while maintaining the regulatory oversight that is crucial for the banking sector.
As the digital transformation of finance continues to unfold, the Cari Network’s initiative represents a significant step towards integrating blockchain technology into the core operations of regional and mid-sized banks. By leveraging the advanced capabilities of ZKsync’s Prividium, these institutions are poised to stay ahead of the curve and continue serving their communities with innovative, secure, and compliant financial solutions.
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