UK-based Monument Bank is preparing to tokenize up to £250 million in retail deposits using the Midnight blockchain. This initiative marks the first instance of a regulated British lender offering tokenized deposits to individual customers rather than institutional clients.
The tokenized assets will maintain a 1:1 peg with traditional savings balances and remain fully redeemable in pounds sterling. Monument currently manages approximately £7 billion in deposits for over 100,000 customers, with the tokenized portion representing about 3.6% of its total holdings.
The project targets mass-affluent clients with investable assets ranging from £50,000 to £5 million. The Midnight network, developed by Shielded Technologies, utilizes zero-knowledge proofs to ensure transaction confidentiality while remaining compliant with regulatory audit requirements.
The launch, originally scheduled for earlier in 2026, is now set for November. Founder Mintoo Bhandari noted that delays stemmed from the need to secure a custodian that meets Financial Conduct Authority standards for privacy technologies, leading the bank to partner with a Canadian firm.
The bank plans to integrate these deposits directly into its consumer application, removing the need for users to manage blockchain infrastructure. Future development phases may introduce tokenized investment products and lending services within the same app interface.
