Regional Banks Collaborate on Tokenized Deposits
What happened
A group of U.S. regional banks is collaborating on initiatives for tokenized deposits, where traditional deposits are represented as programmable digital tokens on a blockchain. The effort aims to enable real-time treasury management and programmable B2B payments. This approach leverages blockchain's auditability while remaining within existing regulatory frameworks.
Why it matters
- The group of collaborating institutions includes Huntington Bancshares, KeyCorp, M&T Bank, First Horizon, and Old National Bancorp, which are partnering with the blockchain firm Cari Network, led by former U.S. Comptroller of the Currency Eugene Ludwig. - This initiative follows a similar project, The Digital Interbank Network, launched by technology provider Tassat Group. That network's founding bank members, which include Cogent Bank, Customers Bank, and Western Alliance Bank, successfully processed over $500 million in transactions in a single day. - The legal foundation for such projects has been clarified by the "GENIUS Act," federal legislation passed in 20
Key numbers
- The effort aims to enable real-time treasury management and programmable B2B payments.
- That network's founding bank members, which include Cogent Bank, Customers Bank, and Western Alliance Bank, successfully processed over $500 million in transactions in a single day.
- The legal foundation for such projects has been clarified by the "GENIUS Act," federal legislation passed in 20
What happens next
- The effort aims to enable real-time treasury management and programmable B2B payments.
Quick answers
What happened in Regional Banks Collaborate on Tokenized Deposits?
A group of U.S. regional banks is collaborating on initiatives for tokenized deposits, where traditional deposits are represented as programmable digital tokens on a blockchain. The effort aims to enable real-time treasury management and programmable B2B payments. This approach leverages blockchain's auditability while remaining within existing regulatory frameworks.
Why does Regional Banks Collaborate on Tokenized Deposits matter?
The group of collaborating institutions includes Huntington Bancshares, KeyCorp, M&T Bank, First Horizon, and Old National Bancorp, which are partnering with the blockchain firm Cari Network, led by former U.S. Comptroller of the Currency Eugene Ludwig. This initiative follows a similar project, The Digital Interbank Network, launched by technology provider Tassat Group. That network's founding bank members, which include Cogent Bank, Customers Bank, and Western Alliance Bank, successfully processed over $500 million in transactions in a single day. The legal foundation for such projects has been clarified by the "GENIUS Act," federal legislation passed in 20
