Can Tokenized Deposits Capture $3.9T in Same Day ACH Flows?

The scale of the stablecoin-driven deposit drain is now quantifiable. The total market cap for these digital dollars has reached about $312 billion, a figure that has grown roughly 50% year-over-year. This rapid expansion, from under $100 billion in early 2023, represents a direct challenge to traditional bank deposits as a store of value and settlement layer.

Regulatory clarity has removed the overhang that once hindered bank participation. The signing of the GENIUS Act in July 2025 established a federal framework for payment stablecoins, transitioning them from speculative assets into regulated financial infrastructure. This shift has created a clear path for banks to respond, moving from a position of regulatory ambiguity to one of strategic urgency.

That urgency is acute for regional banks. Despite the Federal Reserve's recent rate cuts, deposit growth has lagged loan growth, particularly among the 96% of banks with assets under $10 billion. While some institutions report optimism for future growth, the underlying competition for deposits remains intense. The rise of programmable, 24/7 stablecoins creates a new benchmark for liquidity and speed, forcing smaller banks to act quickly to protect their core deposit franchise.

The Cari Network: Mechanics and Scale

The Cari Network is a bank-led, permissioned blockchain platform designed to move tokenized deposits instantly. It is being built on ZKsync's infrastructure, specifically the private, permissioned layer called Prividium. This choice signals a deliberate move away from public, unregulated chains toward infrastructure purpose-built for financial institutions, prioritizing privacy and regulatory alignment.

Five regional banks are the founding participants, with combined assets exceeding $700 billion. They are Huntington Bancshares ($225bn), First Horizon ($84bn), M&T Bank ($214bn), KeyCorp ($184bn), and Old National Bank ($72bn). The network's core function is to let these banks issue digital tokens that represent standard customer deposits, keeping funds on bank balance sheets and eligible for FDIC insurance.

The rollout is planned in phases. A minimum viable product is targeted for March, followed by a pilot with the participating banks in the third quarter. The goal is a full commercial rollout by year-end. Initially, the system will facilitate instant transfers only between customers of these five banks, aiming to capture the speed of stablecoins while preserving the safety and regulatory framework of traditional banking.

The Flow Test: Will It Stop the Leak?

The Cari Network's initial design is a closed loop. It will only facilitate instant transfers between customers of its five founding banks. This limits its immediate impact on the broader deposit drain, as it does not yet connect to the wider payment ecosystem where most stablecoin liquidity resides.

Its true test is whether it can capture a share of the massive, high-speed payment flows already moving through traditional rails. The target is the Same Day ACH network, which saw its value climb 21.4% last year to $3.9 trillion. If tokenized deposits can settle these payments in real-time while maintaining FDIC insurance, they offer a compelling alternative to both slow ACH and the unregulated liquidity of stablecoins.

The key uncertainty is adoption. The network must bridge from an interbank pilot to a consumer-facing reality, competing against the established, high-liquidity ecosystem of stablecoins. As one expert notes, stablecoins are moving from crypto rails to mainstream payments infrastructure, a trend the Cari Network must now match to stop the deposit leak.