Monument Bank to Tokenize £250 Million in Retail Deposits on Midnight Blockchain
UK-based Monument Bank is set to tokenize £250 million in retail savings deposits on the Midnight blockchain, marking a first for a regulated British lender.
Monument Bank is moving to tokenize up to £250 million in retail customer deposits using the Midnight blockchain. This initiative makes the UK challenger bank the first regulated British lender to offer tokenized deposits to everyday retail customers rather than institutional clients.
The tokenized deposits will maintain a 1:1 peg with traditional savings balances, ensuring they remain fully backed and redeemable in pounds sterling. The bank is targeting mass-affluent clients, defined as individuals with investable assets ranging from £50,000 to £5 million.
The project utilizes the Midnight blockchain, a network developed by Shielded Technologies that employs zero-knowledge proofs. This technology allows for confidential transaction details between the bank and its customers while maintaining the ability for regulatory audits.
Monument currently manages approximately £7 billion in deposits for over 100,000 customers, meaning the tokenized portion represents about 3.6% of its total deposits.
The launch, originally planned for earlier in 2026, is now scheduled for November. Founder Mintoo Bhandari noted that the delay was caused by regulatory requirements, specifically the challenge of finding a UK-based custodian that met Financial Conduct Authority standards for privacy technologies. To resolve this, the bank engaged an FCA-approved custodian based in Canada.
The bank intends to integrate these tokenized deposits directly into its consumer banking app. This design aims to allow customers to benefit from the technology without needing to understand blockchain mechanics or manage digital assets directly. Future phases may expand to include tokenized investment products and lending options.
The use of the Midnight blockchain is a notable aspect of the project. Unlike public networks such as Ethereum or Solana, Midnight is designed for selective disclosure, a feature that aligns with the requirements of regulated institutions. A successful implementation at this scale would provide the network with a significant reference client.
