Five US banks to launch tokenized deposit network

Five U.S. regional banks, including Huntington Bancshares, are working to establish a tokenized deposit network, Bloomberg reported. The project, in partnership with blockchain-based platform Cari Network, is scheduled to launch its official service in the fourth quarter of this year. Tokenized deposits are digital versions of regular deposits insured by the Federal Deposit Insurance Corporation (FDIC). They are seen as a way to accelerate interbank settlements and counter the outflow of deposits to the cryptocurrency market. Initially, fund transfers will be limited to customers of participating banks to comply with anti-money laundering (AML) obligations. The plan is to later support other networks, as well as both cryptocurrencies and fiat currencies.