Embracing ZK Technology Over Traditional Solutions

**The Cari Network**, developed alongside five major U.S. regional banks (Huntington, First Horizon, M&T Bank, KeyBank, and Old National), has launched a platform for tokenized deposits powered by ZKsync's Prividium infrastructure. **Key distinctions:** - Tokenized deposits are **direct bank liabilities** integrated with core banking systems and eligible for FDIC insurance - Not stablecoins - they represent real bank deposits brought onchain - The five participating banks collectively hold **$8.3 trillion in assets** **Technical foundation:** - Runs on Prividium, ZKsync's L2 designed specifically for financial institutions - Enables private, compliant blockchain infrastructure while anchoring settlement security to Ethereum - Combines blockchain speed and programmability with existing banking regulatory frameworks **Use cases enabled:** - Real-time cross-border payments with ~1 second settlement - Corporate treasury automation with programmable workflows - Intraday repo and secured financing with instant collateral settlement The network aims to help American banks stay competitive in the digital assets economy while operating within regulatory perimeters. Gene Ludwig, CEO of Cari Network and former 27th Comptroller of the Currency, presented the launch at the DC Blockchain Summit. [Read more about Cari Network](https://www.zksync.io/blog/cari-selects-zksyncs-prividium)

The ZK Staking Pilot Program has raised its target annual percentage rate from 7% to 8% APR, marking the latest increase since the program launched in February. **Key Metrics:** - 250M $ZK tokens currently delegated and staked - Season 1 capped at 400M $ZK total - No lockup periods - users can stake/unstake anytime **How It Works:** The program uses a "Delegate-to-Stake" mechanism built with Tally. Rewards only flow when staked tokens are delegated to active governance participants. This design aims to strengthen protocol governance by tying financial incentives to active participation in proposals and upgrades. The APR adjusts dynamically based on participation levels - more staking typically means lower rates, while less staking can push rates higher (up to 10% maximum). [Stake your $ZK tokens](https://vote.zknation.io/dao/stake/direct)

**ZKsync representative @gluk64 will speak at the Digital Chamber's DC Blockchain Summit on March 18.** - **Topic**: The role of tokenized deposits in next-generation financial markets - **Focus**: Bridging policy and banking infrastructure - **Time**: 1:35 PM - **Location**: Washington, D.C. The presentation addresses privacy, compliance, and institutional adoption in the evolving landscape of digital finance.

**The shift to instant settlement is reshaping finance.** Stablecoins have already begun transforming payment systems, and tokenized deposits are positioned to be the next major development. **Key developments:** - Tokenized deposits will allow institutions to issue regulated digital money - These digital assets can move in real time across markets and international borders - Industry experts predict tokenized deposits could become the fastest growing onchain asset class **Why this matters for banks:** Tokenized deposits offer financial institutions a way to remain competitive in the evolving digital assets economy. Unlike stablecoins, which operate outside traditional banking systems, tokenized deposits enable banks to issue their own regulated digital currency while maintaining compliance frameworks. **The broader context:** This development follows the success of stablecoins as onchain settlement tokens. The technology represents a move toward more efficient, integrated financial infrastructure that can operate 24/7 without the delays of traditional settlement systems. Institutions are beginning to recognize that real-time settlement capabilities will be essential for competing in digital finance.

**Institutional-Grade Security Through Zero-Knowledge Technology** Financial institutions are demanding protocol-level security that protects against invalid transactions, according to Ozhar, VP of Business Development, speaking on a recent panel. **Key Requirements:** - Banks require rigorous security verification at the protocol level - ZK technology provides both privacy and execution integrity - Institutions prioritize math, audits, and track records over narratives **Compliance-First Approach:** The latest ZK implementations include verification hooks that enable: - Private transactions with maintained audit trails - Protection of trade strategies and prevention of front-running - Compliance department approval through transparent verification This cryptography-first approach has been battle-tested at scale, offering privacy without compromising security—addressing the core concerns of institutional capital entering the crypto space.