Monument Bank Limited, a Bank of England-regulated bank managing approximately £7 billion in deposits, is set to become the first UK bank to tokenise retail customer deposits, which generate interest similar to traditional deposits, on a public blockchain, the Midnight network. The initiative is designed to give Monument's mass-affluent customers the opportunity to have fully protected bank deposits mirrored on a blockchain, the first step of enabling the ability to access tokenized asset products in the future, such as private equity, commodity funds, and structured products that have historically been available only to ultra-high-net-worth individuals, family offices and institutional investors.
The programme, built on infrastructure developed by the Midnight Foundation, targets £250 million in tokenised deposits in its first phase. Deposits will remain fully backed by Monument, redeemable in pounds sterling (GBP), and protected under the Financial Services Compensation Scheme.
Monument clients will be able to hold interest-bearing savings deposits as digital tokens on Midnight's privacy-enhancing blockchain infrastructure. Each token will correspond one-to-one with funds held at the bank, acting as a digital representation of a traditional deposit rather than a separate asset.
The launch is the first step in building a programmable financial environment in which savings, investments and lending can operate with greater flexibility and accessibility for customers.
A Three-Phase Rollout to Expand Consumer Access
The first phase will bring up to £250 million of Monument client deposits onto Midnight's network, represented as digital tokens corresponding one-to-one with funds held at the bank. The deposits will remain subject to existing regulatory protections and redeemable in pounds sterling (GBP).
The second phase will focus on providing new tokenised products such as real-world asset investments managed by global asset managers, delivered directly through the Monument app. Customers will be able to gain exposure to these asset classes without needing to buy, hold or manage digital assets, as the underlying blockchain infrastructure operates behind the scenes in the bank’s regulated environment.
The third phase will introduce Lombard-style lending, enabling customers to borrow against their investments in the Monument app. This is designed to provide more cost-effective access to credit than traditional borrowing, allowing mass-affluent customers to access liquidity without selling investments, a facility that has historically been available to ‘Private Banking’ clients.
Together, the partnership aims to create a flexible financial ecosystem in which customers can save, invest and access credit in a single integrated platform. Further, Monument Technology Ltd (an affiliate of Monument Bank) will seek to enable other institutions to offer tokenised deposits by adding this functionality to its leading Banking as a Service platform.
Privacy-Enhancing Infrastructure as the Enabler
This initiative uses Midnight’s privacy-enhancing blockchain infrastructure to ensure transaction data is shielded and accessible only to Monument Bank and its customers. This architecture enables the use of blockchain technology while maintaining the confidentiality, compliance and operational controls required in regulated financial services.
This approach aligns with the direction set by UK regulators, encouraging banks to explore how tokenised deposits could improve the efficiency and functionality of digital money while maintaining existing protections.
Industry Context and Market Opportunity
Interest in tokenised financial infrastructure has accelerated globally as institutions explore how blockchain can improve settlement, collateral management and access to private markets. Research from Boston Consulting Group estimates that tokenised financial assets could reach $4 trillion to $16 trillion by 2030.
While major institutions have developed tokenised deposit infrastructure for institutional use, Monument’s approach differs in its focus on retail banking customers. With more than 100,000 customers, the bank is bringing these capabilities directly into the consumer banking experience that customers already use, ultimately aiming to expand access to investment opportunities that have historically been out of reach for most individuals.
Executive Commentary
"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," said Mintoo Bhandari, Founder of Monument Bank. "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."
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."
“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,” said Fahmi Syed, President of the Midnight Foundation. “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.”
“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,” said Daniel Fozzati, Founding Partner of The Building Blocks.
About Monument
Monument Bank is a leading UK digital bank and recognized as one of the fastest growing Fintechs in the UK & Ireland, designed to serve professionals, entrepreneurs and ambitious savers across the mass-affluent segment. Monument commercially launched in 2022 after receiving full regulatory approval in late 2021. Monument combines modern cloud and microservices technology with a digital-first banking model to deliver savings products and financial services tailored to the needs of its clients. Monument currently serves more than 100,000 customers and manages approximately £7 billion in deposits. The bank holds a UK banking licence and is authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
About The Building Blocks
The Building Blocks is a world-leading, London-based venture studio specialising in the development of high-growth companies leveraging blockchain and artificial intelligence technologies. Working with individuals and companies that have significant unfair advantage in their field, The Building Blocks develop strategic, technological, and product intellectual property, supporting market entry in close partnership with regulators and institutional bodies in pursuit of economic growth through technological and strategic excellence.
About Midnight Foundation
The Midnight Foundation is an organisation dedicated to advancing the development, adoption, and real-world impact of the Midnight network, the privacy-enhancing blockchain project developed by Shielded Technologies. Designed for confidential smart contracts, Midnight enables censorship-resistant yet compliant decentralised applications. It leverages zero-knowledge proofs and a cooperative tokenomics architecture – with NIGHT as the utility token and DUST as the shielded capacity resource – to deliver a powerful combination of privacy, security, and decentralization.