UK-based challenger bank Monument has postponed the launch of its tokenized deposit service. The institution cited regulatory hurdles in the United Kingdom as the primary reason for pausing the initiative, which was originally announced in March 2026.
The bank intended to tokenize up to £250 million of customer deposits using the Midnight blockchain. The project aimed to mirror retail savings balances on the network, utilizing zero-knowledge proofs to ensure transaction privacy while maintaining compliance.
Monument serves over 100 000 clients and manages approximately £7 billion in deposits. The service was designed for mass-affluent customers with investable assets ranging from £50 000 to £5 million, offering interest-bearing deposits protected by the UK Financial Services Compensation Scheme.
The roadmap included a phased rollout starting with savings balances, followed by the introduction of tokenized investment products and Lombard-style lending. Currently, the bank is navigating regulatory uncertainty regarding custody, settlement finality, and deposit protection rules for blockchain-based assets.
