Monument Bank has partnered with the Midnight Foundation to become the first UK bank to tokenise retail customer deposits on a public blockchain.
The programme's first phase aims to bring up to GBP 250 million of customer deposits onto Midnight's network, with each digital token corresponding one-to-one with funds held at the bank. Deposits will remain fully backed by Monument, redeemable in pounds sterling, and protected under the Financial Services Compensation Scheme (FSCS).
The rollout is structured across three phases. The first focuses on tokenising existing deposits and establishing the underlying infrastructure. The second will introduce tokenised real-world asset products (including private equity, commodity funds, and structured products) delivered through the Monument app and managed by global asset managers. Customers will gain exposure to these asset classes without needing to directly hold or manage digital assets, as the blockchain layer operates within the bank's regulated environment.
The third phase will introduce Lombard-style lending, allowing customers to borrow against their investments without liquidating positions. This form of credit has been associated with private banking services available only to high-net-worth individuals and institutional investors. With this in mind, Monument's stated intent is to make it accessible to a broader retail segment through its app.
Together, the three phases are designed to create an integrated platform through which customers can save, invest, and access credit. Monument Technology Ltd, an affiliate of Monument Bank, also intends to make tokenised deposit functionality available to other institutions via its Banking as a Service platform.
In an exclusive comment for The Paypers, Ian Rand, Monument CEO, added: `By combining these innovative capabilities with our exceptional client-centric service model, and the protections provided by the regulated banking framework of the UK, we are excited to deliver services that help our clients manage, and build, their prosperity.`
Moreover, Mintoo Bhandari, founder of Monument Bank, added that: `We are confident that Midnight can provide Monument and its clients with the blockchain infrastructure required to preserve the confidentiality that will be essential to the future of highly efficient, scalable, modern banking.`
Privacy infrastructure and regulatory alignment
The initiative is built on Midnight's blockchain infrastructure, which shields transaction data so that it remains accessible only to Monument Bank and its customers. This architecture is intended to address the confidentiality and compliance requirements that apply in regulated financial services environments.
Daniel Fozzati, founding partner of The Building Blocks, also commented that: `This partnership marks a key milestone in the maturation of blockchain technology, proving that next-generation technologies and the highest standards of regulatory compliance can work hand in hand to deliver outstanding customer experiences and value. The Building Blocks is delighted to have forged this partnership, delivering a world first by leveraging the UK's innovation ecosystem.`
The approach is broadly consistent with the direction UK regulators have signalled in recent years, as authorities have encouraged banks to examine how tokenised deposits could improve the efficiency and functionality of digital money while maintaining existing consumer protections.
Moreover, through the process of embedding blockchain infrastructure directly into the consumer banking experience, the bank is taking a distinct approach from major institutions that have to date focused tokenised deposit infrastructure on wholesale and institutional use cases.
Industry interest in tokenised financial assets has grown considerably. Research from Boston Consulting Group estimates that tokenised financial assets could reach between USD 4 trillion and USD 16 trillion by 2030, reflecting broader institutional momentum around settlement efficiency, collateral management, and access to private markets.
