Regional Banks Team Up for Tokenized Deposits

Five regional US banks are preparing to launch a new tokenized deposit network by the end of this year, marking one of the most significant blockchain moves yet by mid-sized lenders.

The initiative is being developed in partnership with blockchain platform Cari Network and involves Huntington Bancshares, First Horizon, M&T Bank, KeyCorp, and Old National Bank. It marks a notable shift as regional banks — not just global institutions — embrace tokenization and seek to preserve their relevance amid intensifying competition from fintech and digital-asset players.

The group plans to release a minimum viable product in March, followed by a pilot in the third quarter and a full commercial rollout by year-end. The network aims to offer customers tokenized deposits that function like stablecoins in terms of speed and transferability, while retaining the legal status and protections of traditional bank deposits. Tokens issued on the network will represent standard bank liabilities and remain eligible for FDIC insurance up to the usual limits.

Initially, the platform will support money movement only among the customers of the participating banks. Over time, the consortium aims to link the system with other payment networks to widen interoperability and extend instant, round-the-clock settlement capabilities.

Cari Network is helmed by former US Comptroller of the Currency Gene Ludwig, who said of the initiative:  “Tokenized deposits, built on sound blockchain infrastructure, can modernize payments while keeping insured deposits at the core of economic activity.”