US regional banks don launch Cari Network for zkSync to turn deposits into tokens

One group of US regional banks (including Huntington Bancshares, First Horizon, M&T Bank, KeyCorp and Old National) dey build Cari Network — a permissioned, tokenized-deposit settlement platform wey dem deploy for zkSync Era (Ethereum Layer 2). Cari go allow banks convert dollar deposits into transferable digital tokens wey go still dey for bank balance sheets, insured and regulated, enabling near-instant 24/7 interbank settlement, lower costs compared to old batch systems (ACH), and better liquidity and operational efficiency. The project dey run on Matter Labs’ zkSync stack (with privacy via ZK proofs on their private chain) and e get backing from the Mid-Size Bank Coalition of America. Dem plan phased testing (issuance, transfers, redemptions) with pilots targeted for late 2025 and wider rollout in 2026. Leaders dey stress regulatory engagement, privacy, permissioned access, and say these tokens be bank-backed deposit representations — no be volatile cryptocurrencies. For traders, the initiative validate Layer-2 utility, fit raise institutional on-chain settlement volumes, and fit bridge regulated banks to permissioned DeFi use cases, potentially increase transaction demand for zkSync/Ethereum infrastructure while keeping retail exposure limited.