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.
- 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
