Monument, the UK digital bank focused on mass-affluent customers, is partnering with blockchain infrastructure provider Midnight to tokenise retail deposits and widen access to new investment products.

Under the arrangement, Monument customers will be able to hold interest-bearing deposits as digital tokens on Midnight’s network, with the funds still held at the bank and covered by existing UK protections. The bank sees this as the first step towards offering a wider range of tokenised investment and lending products to retail clients through its platform.

The bank said it is targeting £250million in tokenised deposits in the first phase of the rollout. Each token will correspond one-to-one with funds held at Monument, acting as a digital representation of a traditional deposit rather than a separate asset. Deposits will remain redeemable in pounds sterling and protected under the Financial Services Compensation Scheme.

According to the companies, the project is being built on infrastructure developed by the Midnight Foundation and is designed to let customers access blockchain-based functionality without having to buy, hold or manage digital assets themselves. Monument said the longer-term aim is to create a more integrated offering spanning savings, investments and borrowing within its app.

Staged rollout

The rollout is planned in three phases. The first will focus on bringing customer deposits onto Midnight’s network as tokenised representations of funds held at the bank. The second will centre on introducing tokenised investment products, including real-world asset investments managed by global asset managers. The third is expected to add Lombard-style lending, allowing customers to borrow against investments held through the app.

Monument said the privacy features of Midnight’s infrastructure were a key part of the partnership, as transaction data will be visible only to the bank and its customers. The companies said this approach is intended to allow blockchain-based products to operate within the confidentiality and control requirements of regulated financial services.

The announcement comes amid broader interest in tokenised financial infrastructure, particularly around settlement, collateral management and access to private market assets. Monument said its approach differs from many existing tokenisation initiatives by focusing on retail banking customers rather than institutional users.

Scalable modern banking

“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, CEO at Monument, also 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.”

Assets on public networks

“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.”

The bank said the project is intended to lay the groundwork for a broader range of tokenised financial products for retail customers.