Monument Bank Limited is set to become the first UK bank to tokenise retail customer deposits on a public blockchain. This initiative, developed in partnership with the Midnight Foundation, enables Monument’s mass-affluent customers to hold fully protected, interest-generating bank deposits mirrored on the Midnight network blockchain.

The programme aims to open access to tokenised asset products, such as private equity, commodity funds, and structured products, that have traditionally been exclusive to ultra-high-net-worth individuals, family offices, and institutional investors.

Mintoo Bhandari, Founder of Monument Bank, said, “Monument was founded on the promise of bringing the most innovative and valuable financial offerings, safely and securely, to the often overlooked and underserved mass-affluent community in the UK and beyond. The step we are taking today with the Midnight Foundation demonstrates how we continue to deliver on that promise.” 

He added,”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.”

Tokenised deposits: The first phase targeting £250 million

Built on Midnight’s privacy-enhancing blockchain infrastructure, the first phase aims to attract £250 million in tokenised deposits. These deposits will remain fully backed by Monument, redeemable in pounds sterling (GBP), and protected under the Financial Services Compensation Scheme.

Each digital token corresponds one-to-one with funds held at the bank, acting as a digital representation of traditional deposits rather than a separate asset. This approach ensures regulatory protections remain intact while enabling customers to hold interest-bearing savings deposits as digital tokens.

Ian Rand, CEO, Monument, quoted, “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.”

A three-phase rollout to broaden financial access

The rollout will be in three phases.

Phase one will focus on tokenisation of up to £250 million of client deposits on the Midnight network, maintaining full regulatory protections and GBP redemption.

Phase two will introduce new tokenised products, including real-world asset investments managed by global asset managers, that are accessible directly through the Monument app. Customers can gain exposure to these asset classes without needing to manage digital assets, as blockchain infrastructure operates seamlessly behind the scenes.

Phase three will be the launch of Lombard-style lending, allowing customers to borrow against their investments within the Monument app. This facility aims to provide cost-effective credit access without requiring the sale of investments, a benefit historically reserved for private banking clients.

Together, these phases aim to create an integrated financial ecosystem where customers can save, invest, and access credit on a single platform. Monument Technology Ltd, an affiliate of Monument Bank, plans to extend tokenised deposit capabilities to other institutions via its Banking as a Service platform.

Privacy-enhancing infrastructure as a key enabler

Midnight’s blockchain infrastructure ensures transaction data is shielded and accessible only to Monument Bank and its customers. This architecture balances the benefits of blockchain technology with the confidentiality, compliance, and operational controls required by regulated financial services.

This initiative aligns with UK regulatory guidance encouraging banks to explore tokenised deposits as a means to enhance digital money’s efficiency and functionality while maintaining existing consumer protections.

Fahmi Syed, President of the Midnight Foundation, said, “Financial institutions around the world are exploring how blockchain infrastructure can support regulated financial products, but one of the persistent challenges has been balancing transparency with the privacy requirements of modern banking. Midnight provides programmable privacy infrastructure that allows financial institutions to represent assets on public networks while ensuring transaction data and sensitive financial information remain protected.”

“Monument’s initiative demonstrates how regulated banks can begin bringing traditional financial products onto a permissionless blockchain like Midnight in a way that aligns with existing compliance, disclosure and consumer protection frameworks.”

Daniel Fozzati, Founding Partner of The Building Blocks, also added, “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.”

It is to be noted that global interest in tokenised financial infrastructure is accelerating, with blockchain seen as a tool to improve settlement, collateral management, and access to private markets. Boston Consulting Group estimates that tokenised financial assets could reach between $4 trillion and $16 trillion by 2030.

Monument’s retail-focused approach provides tokenised deposit infrastructure directly to consumer banking, making investment opportunities accessible to individuals that were previously out of reach.