Five U.S. regional banks—Huntington Bancshares, M&T Bank, KeyCorp, First Horizon, and Old National Bank—have jointly launched Cari Network, a permissioned blockchain-based digital deposit network with combined assets of approximately $780 billion. The initiative is overseen by Gene Ludwig, former senior official at the U.S. Office of the Comptroller of the Currency, aiming to counter the threat stablecoins pose to traditional deposit bases.
Consortium Structure and Strategic Goals
The founding banks are leaders in the regional U.S. banking sector. Ludwig emphasizes that the primary goal is to reinforce the stability and strength of the regulated banking system. The banks share concerns that the growth of stablecoin-based payments and transactions could erode traditional deposit bases and limit their capacity to extend credit.
Unlike most stablecoins, Cari tokens directly represent deposit liabilities on the issuing banks’ balance sheets, ensuring customer funds remain with the banks, are covered by FDIC insurance, and support established credit mechanisms. Existing stablecoins are typically liabilities of non-banking issuers, often outside the regulated deposit system and without deposit insurance.
“The central role of insured deposits in economic activity makes Cari Network a path to digitalization for banks without undermining their core credit and financing functions,” said Ludwig.
Technical Foundation and Security Advantages
The technology underpinning Cari Network comes from Prividium, a permissioned, privacy-focused blockchain solution developed by Matter Labs and integrated with Ethereum via ZKsync. Privacy features are critical for banks to meet regulatory and confidentiality requirements in handling customer data and transaction flows.
What sets Cari Network apart is its shared token model: the five banks collaborate to issue a unified Cari token, enabling instant, seamless transfers between customers of different participating banks. This interoperability tackles the sector’s long-standing issue of fragmentation in digital bank-issued assets.
Rollout Timeline and Industry Context
The first product rollout, offering limited core features, launches this month. A targeted pilot is planned for Q3 2026, with commercial deployment aiming for Q4. This timeline reflects the urgency for banks to respond to the surging stablecoin market.
The same week saw PayPal expanding its PYUSD stablecoin to 70 countries, Mastercard reaching a $1.8 billion agreement to acquire digital asset infrastructure provider BVNK, and Circle’s USDC stablecoin continuing growth. These moves highlight the rapid pace of digital adoption across the banking sector.
Whether tokenized deposit products like Cari Network can deliver user-friendly experiences, high transaction speeds, and regulatory assurance remains a decisive question for the sector’s future.