Cardano: Midnight Powers First UK Bank to Tokenize Retail Deposits

Monument partners with Midnight Foundation, the team behind Cardano-based Midnight, to become the first UK-regulated bank to tokenize retail customer deposits.

According to a press release, the initiative leverages Midnight’s privacy-enhancing infrastructure to bring traditional savings products on-chain while maintaining full regulatory protections. 

Key Points 

• Monument Bank Limited has partnered with Midnight Foundation to tokenize retail customer deposits on a public blockchain. 
• The initiative marks the first time a UK-regulated bank has brought retail deposits on-chain. 
• Monument will roll out the initiative in three structured phases, with phase one expected to tokenize up to £250 million ($334.17 million) in customer deposits. 
• Customers can access tokenized products without managing or holding digital assets. 

Monument Bank Taps Midnight Privacy Features to Tokenize Retail Deposits 

Monument Bank, a Bank of England-regulated institution, is taking a first-mover position in the UK’s evolving digital finance landscape by introducing tokenized retail deposits on Midnight, Cardano’s privacy blockchain. 

Through this initiative, customers can hold interest-bearing savings as digital tokens, with each token representing funds securely held at the bank.

Moreover, the system uses Midnight’s privacy-focused infrastructure to keep transaction data confidential and accessible only to the bank and its customers. Additionally, it aligns with regulatory standards, ensuring blockchain adoption does not compromise compliance or consumer protection. 

Midnight 🤝 Monument Bank

Monument is set to become the first UK-regulated bank to tokenize retail customer deposits on a public blockchain — representing interest-bearing savings as digital tokens while remaining fully backed, redeemable in GBP, and protected under existing… pic.twitter.com/Uonj2jqcHM

— Midnight Foundation (@midnightfdn) March 25, 2026

Phased Rollout 

According to the announcement, Monument will roll out the system in three phases. First, the bank will bring up to £250 million ($334.17 million) in deposits on-chain while maintaining full backing and protection under the Financial Services Compensation Scheme (FSCS). Each deposit will be tokenized on a one-to-one basis, remaining interest-bearing and fully redeemable in GBP.

Next, Monument will expand into tokenized investment products, including commodity funds, private equity, and structured assets, delivered directly through its app. In doing so, it aims to democratize access to investment opportunities reserved for ultra-wealthy investors. Notably, customers will gain exposure without needing to buy, hold, or manage digital assets themselves.

Lastly, the bank will introduce Lombard-style lending, enabling customers to borrow against their tokenized investments. As a result, users can access liquidity without selling their assets, effectively extending private banking-style services to a broader audience.

Beyond these phases, Monument plans to extend tokenization capabilities to other institutions through its Banking-as-a-Service platform, potentially accelerating adoption across the financial sector.

Industry Context and Growing Momentum Around Midnight 

The partnership comes amid rising global interest in tokenized financial infrastructure, a sector projected to reach up to $16 trillion by 2030. 

In parallel, Securitize and the New York Stock Exchange have partnered to develop a tokenized securities infrastructure, while the U.S. SEC approved Nasdaq’s request to facilitate tokenized trading. 

Meanwhile, the development precedes the mainnet launch of Midnight, expected later this month. Although Midnight is yet to go live as a partner chain on the Cardano mainnet, it has already attracted major partners, including AlphaTon Capital, which aims to leverage its privacy infrastructure for advanced applications such as self-preserving AI for Telegram’s massive user base.

Additionally, Charles Hoskinson has emphasized that Midnight will continue to attract high-profile partnerships, and the Monument Bank collaboration reinforces this outlook.