šØ Monument Bank to Tokenize up to Ā£250M ($335M) Retail Deposits on Cardano-Linked Midnight NetworkāFirst U.K. Regulated Bank on Public Blockchain
Monument Bank will tokenize up to £250 million ($335M) of retail customer deposits on Midnight network marking first such initiative by U.K.-regulated bank on public blockchain. Deposits remain fully backed, interest-bearing and FSCS-protected redeemable one-for-one in pounds sterling. Rollout targets mass-affluent clients (£50K-£5M investable assets) rather than institutions. Midnight is privacy-focused blockchain developed by Shielded Technologies linked to Cardano ecosystem. Transaction visibility restricted to bank and clients aligning with regulatory and compliance requirements. Longer-term strategy includes tokenized investment products (private markets, commodities) and lending collateralized by onchain assets.
š Key Points:
š¹ Ā£250M Retail Deposit Tokenization: Monument Bank tokenizing up to Ā£250 million of retail customer deposits on Midnight network; deposits remain redeemable one-for-one in pounds sterling while continuing to earn interest; covered under U.K.'s Financial Services Compensation Scheme preserving same protections as conventional deposits; represents shift from institutional settlement focus to retail customer model
š¹ Mass-Affluent Client Target: Rollout starts with individuals holding between Ā£50,000 and Ā£5 million in investable assets; contrasts with previous tokenization efforts largely focused on institutional settlement or closed networks; Monument extending model to retail customers rather than wholesale banking participants
š¹ Midnight Privacy-Focused Infrastructure: Midnight is privacy-focused blockchain developed by Shielded Technologies linked to Cardano ecosystem; first phase will mirror customer balances on Midnight with transaction visibility restricted to bank and clients; aligns with regulatory and compliance requirements through selective disclosure versus public transparency
š¹ Multi-Phase Roadmap Beyond Deposits: Monument plans to introduce tokenized investment products including exposure to private markets and commodities followed by lending services collateralized by onchain assets; Monument Technology affiliate intends to offer tokenized deposit capabilities through Banking-as-a-Service model allowing other institutions to adopt similar systems; positions project as potential framework for broader adoption versus one-off product
š¹ Cardano Ecosystem Expansion: Midnight developed by Shielded Technologies with links to Cardano ecosystem; represents Cardano-adjacent infrastructure gaining regulated financial institution adoption; Fahmi Sayed (President at Midnight Foundation) emphasized focus on finding right partners explaining Monument selection
š Why It Matters:
š¹ Retail vs Institutional Tokenization Thesis: Monument targeting mass-affluent retail (Ā£50K-Ā£5M) versus institutional wholesale represents fundamentally different tokenization value proposition; retail benefits from 24/7 access, composability with DeFi, programmability versus institutional focus on settlement efficiency; success or failure will indicate whether tokenized deposits appeal primarily to crypto-native users or traditional banking customers
š¹ FSCS Protection as Legitimacy Signal: Maintaining Financial Services Compensation Scheme coverage while tokenizing deposits critical for retail adoption; demonstrates tokenization doesn't require sacrificing regulatory protections; could become template for other U.K. banks if Monument proves viability; removes "are tokenized deposits still insured?" barrier
š¹ Privacy Layer as Regulatory Compliance Tool: Midnight's privacy-focused infrastructure with selective disclosure (only bank and client see transactions) contrasts with fully public blockchain transparency; demonstrates privacy-preserving blockchains may be more suitable for regulated banking versus transparent public chains; addresses compliance concerns around customer data protection and transaction confidentiality
š¹ Banking-as-a-Service Multiplier Effect: Monument Technology offering tokenized deposit capabilities through BaaS model could accelerate adoption beyond single bank experiment; if multiple institutions adopt Monument's infrastructure creates network effects; positions Monument as infrastructure provider not just retail bank; success depends on regulatory clarity for banks using third-party tokenization platforms
šÆ Bottom Line:
Monument Bank to tokenize up to Ā£250M retail deposits on Cardano-linked Midnight networkāfirst U.K. regulated bank on public blockchain; deposits remain FSCS-protected, interest-bearing; targets mass-affluent clients (Ā£50K-Ā£5M); future phases include tokenized investments and onchain asset-backed lending.
https://coindoo.com/cardano-linked-midnight-network-lands-first-u-k-bank-for-tokenized-deposits/