London-based Monument Bank is preparing to tokenize up to £250 million in retail customer deposits using the Midnight network. In a first among banks operating in the UK, Monument intends to represent savings in a regulated manner on a public blockchain. The bank emphasizes that the security of customer funds and data will remain paramount throughout this process.
Deposit Insurance and Interest Remain in Place
According to Monument, customer deposits that undergo tokenization will continue to earn interest and can always be withdrawn in British pounds on a one-to-one basis. All tokenized assets will continue to be secured by the bank itself. This ensures that customers will retain protection under the UK’s Financial Services Compensation Scheme, providing reassurance that deposit insurance stays intact.
This digital initiative marks the first time tokenization—previously limited to institutional clients or private networks—has been made available to individual customers. The bank shared that, at launch, it is targeting those holding investible assets between £50,000 and £5 million, aiming to appeal to a substantial, affluent retail segment.
As part of its digital expansion, Monument has revealed plans to eventually offer tokenized investment products via its platform. The bank is placing particular emphasis on private market and commodity funds as key offerings. In the future, the use of tokenized assets could also open up new financing opportunities for customers directly via the Monument app.
Blockchain Infrastructure and New Service Models
The new tokenization infrastructure is powered by Midnight Foundation, a platform developed by Shielded Technologies, which is known for its connection to the founder of Cardano. This setup ensures that transaction data is accessible only to the bank and its customers, providing enhanced privacy protections. At the same time, all processes are designed to fully comply with UK regulatory standards and banking requirements.
Additionally, Monument Technology—the technology arm associated with Monument Bank—could enable other financial institutions to adopt this tokenization model. With its expertise in developing banking technologies, Monument may eventually allow broader industry access to these advanced tokenized deposit management services.
Monument views this new platform as a significant step towards broader adoption of blockchain technology in the retail finance sector. In a statement, the company underlined its commitment to regulatory compliance and robust privacy standards:
Monument Bank emphasizes that customer confidentiality and adherence to regulatory requirements were the top priorities in the platform’s design.
By advancing this initiative, Monument is taking concrete steps to bridge traditional banking with tokenized financial products. How the industry will respond to Monument’s move remains to be seen in the coming period.
