Monument Bank to tokenize 250 million pounds of retail deposits in UK first

Monument Bank, a London-based challenger bank, announced plans to tokenize up to £250 million ($335 million) of its retail customer deposits on the Midnight network, marking the first such initiative by a U.K.-regulated bank on a public blockchain. These tokenized deposits will remain interest-bearing, fully backed by Monument, redeemable one-for-one in pounds sterling, and protected by the U.K.'s Financial Services Compensation Scheme. The initial phase targets retail customers with investable assets between £50,000 and £5 million, utilizing Midnight's privacy-focused blockchain infrastructure developed by Shielded Technologies, which is linked to Cardano creator Input Output. Future phases aim to incorporate tokenized investment products and lending capabilities within the Monument app. This move signifies a significant step toward integrating tokenized financial products into regulated banking, with transaction data visibility restricted only to the bank and its customers, ensuring compliance with existing U.K. rules.

(Source：CoinDesk)