The Cari Network for tokenized deposits has expanded to more than 30 banks ahead of a soon-to-launch pilot involving six design partner banks. The latest addition to the design bank group is SouthState, which provides correspondent services to more than 1,300 financial institutions. The other five design banks are Huntington ($225bn assets), First Horizon ($84bn), M&T Bank ($214bn), KeyBank ($184bn) and Old National Bank ($72bn). Another 40 banks are in active discussions to join. Together, the network and pipeline represent institutions with combined assets of more than $10 trillion.
By joining the network, SouthState said it aims to provide its other banking clients with “real-time settlement, liquidity management, and digital money movement.” Among other notable recent additions to the broader network are FNBO (First National Bank of Omaha) and Raymond James Bank. Today Cari also announced it is joining the American Bankers Association’s (ABA) Premier Partner Network.
The Cari Network was founded by Eugene Ludwig, a former Comptroller of the Currency during the Clinton administration. He also founded and led the Promontory Financial Group.
A notable feature of the emerging US tokenized deposit networks is the rapid pace of progress. Sometimes that involves finding the fastest path. In the case of Cari, it is adopting technology from Tassat, an early US developer of tokenized deposit technology. One of its solutions was used by several banks for intrabank tokenized deposits, such as Signature Bank’s Signet and Western Alliance, so has been used at scale. Tassat also launched the Digital Interbank Network, which we believe was stifled by the previous administration’s opposition to blockchain and crypto.
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