Monument Bank to Tokenize Deposits on Midnight Blockchain

Monument Bank, a UK-regulated digital bank serving mass-affluent customers, announced plans this week to become the first such institution to tokenize retail customer deposits on a public blockchain. The initiative, in partnership with the privacy-focused Midnight network, targets up to 250 million pounds in deposits during its initial phase, representing a milestone in bridging traditional finance with blockchain technology.

The tokenized deposits will mirror existing customer savings on the Midnight blockchain, a partner chain to Cardano that uses zero-knowledge cryptography to shield transaction data while ensuring accessibility only to the bank and its customers. According to Monument, the digital tokens will remain fully backed, redeemable in pounds sterling, and protected under the Financial Services Compensation Scheme, which safeguards deposits up to 85,000 pounds per customer. This structure preserves interest-bearing features and regulatory compliance, allowing customers to hold blockchain-based versions of their savings without altering their legal status.

Midnight Foundation President Fahmi Syed described the network as providing "programmable privacy infrastructure...