Catenaa, Saturday, March 21, 2026- Five US regional lenders, including Huntington Bancshares and KeyCorp, on Tuesday launched the Cari Network, a blockchain-based payment system designed to enable instant settlement of tokenized bank deposits while retaining federal insurance protections.
The consortium, which also includes First Horizon, M&T Bank and Old National Bancorp, said the platform runs on technology developed by Matter Labs using its ZKsync infrastructure.
Executives said the system allows banks to offer digital payments with near-instant settlement speeds while keeping funds within regulated banking frameworks, positioning the network as an alternative to stablecoins.
Unlike stablecoins issued by non-bank entities, Cari tokens represent deposits held directly on bank balance sheets. These funds remain insured and subject to existing banking regulations.
The system uses cryptographic proofs to validate transactions, enabling fast transfers across participating institutions without relying on traditional clearing systems.
Industry analysts said the approach could appeal to corporate clients seeking faster payments without exposure to crypto market risks.
The launch comes as stablecoins continue to gain traction in global payments, with billions of dollars in daily transaction volume. Financial institutions have faced pressure to match the speed and efficiency of blockchain-based systems.
Regional banks said the new network is intended to prevent deposit outflows to digital asset platforms and maintain their role in payment processing.
Executives described the initiative as part of a broader effort to modernize banking infrastructure.
The project enters a policy environment where lawmakers are still debating how to regulate digital assets. While stablecoin legislation has advanced in Congress, broader market structure rules remain unresolved.
By using tokenized deposits within existing legal frameworks, banks aim to avoid regulatory uncertainty tied to non-bank digital currencies.
Analysts said this strategy could allow faster adoption compared with systems that depend on new legislation.
The Cari Network is expected to roll out in phases, with initial use focused on institutional payments and corporate treasury operations. Developers plan to expand interoperability with other blockchain systems over time.
The underlying infrastructure is designed to support high transaction throughput while maintaining privacy and auditability, features seen as critical for enterprise use.
Large financial institutions and technology firms are also developing digital payment solutions, increasing competition in the sector. Some banks have already launched internal blockchain systems for settlement and liquidity management.
Global markets are moving in parallel, with financial centers exploring tokenized assets and digital currencies.
Experts said adoption will depend on whether businesses trust bank-issued digital deposits over existing stablecoins. Cost efficiency, reliability and regulatory clarity are expected to shape outcomes.
The launch signals a shift among regional banks toward blockchain-based systems as they seek to remain competitive in an evolving payments landscape.
