Monument Bank has reportedly achieved a new milestone in UK finance by becoming one of the first the regulated institutions to tokenize retail customer deposits on a public blockchain. In collaboration with the Midnight Foundation, the Bank of England-authorized lender— which oversees roughly £7 billion in deposits and serves over 100,000 mass-affluent clients—will convert interest-bearing savings into digital tokens.
These tokens mirror traditional deposits on a one-to-one basis, remaining fully backed by the bank, redeemable in pounds sterling, and safeguarded by the Financial Services Compensation Scheme.
The initiative, powered by Midnight’s privacy-focused blockchain, marks the initial phase of a broader effort to democratise access to sophisticated financial tools.
Previously reserved for ultra-high-net-worth individuals, family offices, and institutions, products such as private equity, commodity funds, and structured investments will soon become available to everyday professionals and entrepreneurs through Monument’s familiar app.
Customers will not need to handle cryptocurrencies directly; the blockchain infrastructure operates invisibly behind regulated safeguards.
The rollout is structured in three progressive stages.
Phase one targets up to £250 million in tokenized deposits, allowing clients to hold their savings as secure digital representations on the network while earning interest as usual.
Phase two will introduce tokenized real-world asset investments managed by global partners, enabling seamless exposure without the complexities of digital asset custody.
In the final phase, Monument plans to launch Lombard-style lending, letting customers borrow against their holdings for liquidity without liquidating investments—a feature traditionally limited to private banking clients.
This partnership creates a fully integrated, programmable financial ecosystem within one platform, combining saving, investing, and borrowing with enhanced efficiency and flexibility.
Monument Technology Ltd, an affiliate of the bank, also intends to extend this tokenization capability to other financial institutions through its Banking-as-a-Service platform, potentially accelerating industry-wide adoption.
Privacy remains central to the design.
Midnight’s advanced infrastructure employs zero-knowledge proofs and shielded data protocols to ensure transaction details stay confidential, visible only to the bank and its customers.
This approach satisfies stringent regulatory requirements while harnessing blockchain’s benefits for faster settlement and broader access.
Mintoo Bhandari, founder of Monument, emphasized the bank’s commitment to serving an often-overlooked segment:
“Our goal has always been to deliver financial solutions safely to mass-affluent clients across the UK and beyond. This collaboration with Midnight underscores our dedication to that vision by providing the secure blockchain foundation essential for modern, scalable banking.”
CEO Ian Rand highlighted the balance of innovation and service:
“We are combining breakthrough technology with our client-first approach and the robust protections of UK regulation to help customers grow their wealth more effectively.”
Fahmi Syed, president of the Midnight Foundation, noted the solution to a long-standing industry hurdle:
“Banks worldwide have struggled to reconcile blockchain transparency with banking’s privacy demands. Our network allows regulated institutions to bring traditional products onto public ledgers while protecting sensitive information.”
The development aligns with growing global interest in tokenized finance.
According to Boston Consulting Group projections, such assets could reach between $4 trillion and $16 trillion by 2030.
By focusing on retail clients rather than institutions alone, Monument is pioneering a more inclusive model that could reshape how ordinary savers engage with capital markets.
Daniel Fozzati of venture studio The Building Blocks described the launch as as follows:
“This partnership proves that advanced blockchain and strict regulatory standards can coexist, delivering real value through Britain’s innovative ecosystem.”
As the program advances, it seemingly signals a shift toward programmable money that maintains consumer protections while expanding opportunity—potentially setting a new standard for digital banking services.