Monument Bank plans to tokenize up to £250 million in retail deposits on a public blockchain, marking a first for a regulated UK bank.
Key Takeaways
- Monument Bank will tokenize up to £250 million in retail deposits on the Midnight public blockchain network.
- Deposits will remain interest bearing, fully backed, and protected under FSCS, ensuring customer safety.
- This is the first known attempt by a UK regulated bank to bring retail deposit tokenization to a public blockchain.
- Future plans include tokenized investment products and lending services, expanding the bank’s digital offerings.
What Happened?
Monument Bank, a London based challenger bank, announced plans to tokenize up to £250 million of retail customer deposits using the Midnight blockchain. The initiative is being positioned as a first of its kind move by a regulated bank in the UK.
The bank confirmed that these deposits will continue to earn interest, remain fully backed, and stay protected under the UK’s Financial Services Compensation Scheme, offering reassurance to customers.
JUST IN: UK challenger bank Monument to tokenize up to £250M in retail deposits on @MidnightNtwrk, marking the first time a UK-regulated bank has tokenized deposits on a public blockchain while keeping them FSCS-protected and interest-bearing. pic.twitter.com/V1rAXDsuA2
— CoinDesk (@CoinDesk) March 25, 2026
Monument Bank’s Tokenization Strategy
Monument Bank is targeting a new phase of digital banking innovation by bringing retail deposits onto a public blockchain. Unlike earlier experiments in the financial sector that focused mainly on institutional clients or closed systems, this initiative is aimed directly at retail and mass affluent customers.
The bank currently serves over 100,000 customers and holds around £7 billion in deposits, showing a strong base for this rollout. Initially, the tokenization process will mirror existing savings balances on Midnight’s privacy focused blockchain infrastructure.
Key features of the tokenized deposits include:
- 1:1 redemption in British pounds, ensuring no loss in value.
- Full backing by Monument Bank, maintaining financial stability.
- Ongoing interest earnings, just like traditional savings accounts.
- FSCS protection, preserving regulatory safeguards.
This approach is designed to combine the efficiency of blockchain technology with the trust of traditional banking systems.
Role of Midnight Blockchain and Technology Partners
The tokenization effort will run on the Midnight network, a blockchain platform known for its focus on privacy. The infrastructure is supported by the Midnight Foundation, developed by Shielded Technologies, which is linked to the creators of the Cardano ecosystem.
A key aspect of the system is that transaction data will remain visible only to the bank and its customers, helping address privacy concerns while still leveraging blockchain capabilities.
This balance between transparency, privacy, and compliance is crucial as regulators continue to evaluate blockchain based financial products.
Expansion Into Tokenized Financial Products
Monument Bank’s plan goes beyond deposits. The bank outlined a phased strategy that includes:
- Introducing tokenized investment products such as private market and commodity funds.
- Enabling lending against tokenized assets within its mobile app.
- Expanding access through its Banking-as-a-Service platform, allowing other institutions to adopt similar models.
This broader vision signals a push toward integrating blockchain into everyday banking services, not just niche financial products.
CoinLaw’s Takeaway
In my experience, this move feels like a real shift from experimentation to practical adoption. Many banks have talked about tokenization, but most stayed within closed systems or focused only on big institutions.
Here, Monument Bank is taking a bold step into retail banking, which is where the real impact lies. I found the combination of FSCS protection and blockchain efficiency particularly important, because trust is the biggest barrier in crypto-related innovation.
If this works smoothly, it could reshape how everyday customers interact with their savings, making blockchain less of a buzzword and more of a normal banking feature. That said, adoption will depend heavily on how simple and secure the experience feels for users.
