Tokenised deposits: Building the bank for the future

The way banks manage deposits hasn't changed much in decades. We think it's time it did.

That's why we're launching a tokenised deposit product with Midnight, targeting up to £250 million in client deposits. No UK-regulated bank has done this on a public blockchain before.

Mintoo Bhandari, our founder, sees it as a natural evolution:  

"We believe the bank of the future will connect people to their money, their assets and their opportunities as efficiently as possible. They won't have to worry about what's happening in the background. We're simply making it work more efficiently than legacy systems have been able to."

What this actually means

Tokenised deposits are digital representations of the savings you already hold with Monument. Each token corresponds one-to-one with pounds sterling in your account. Your deposits remain fully backed, continue to earn interest and stay protected under the Financial Services Compensation Scheme (FSCS).

Nothing changes for you on the surface. The difference is in the infrastructure working behind the scenes, designed to make how we manage and move money faster and more efficient. You won't need to buy, hold or manage any digital assets. This is your savings, represented more efficiently.

Built on privacy by design

We chose Midnight for a specific reason. Developed by Shielded Technologies, Midnight uses zero-knowledge proof technology. In plain terms, this means transactions can be verified without exposing the data itself.

For a bank operating under UK regulation, that distinction matters. It allows us to use public blockchain infrastructure while keeping transaction data visible only to Monument and our clients.

Mintoo is clear about what drove the decision:  

"Security, privacy and the ability to audit. To actually interrogate what has happened and provide the right evidence and trails, so that our clients can feel confident that everything is working exactly as it should.”

A regulated bank that moves like a fintech

Ian Rand, our CEO, sums up the product announcement and what it means for Monument:  

"This is a really exciting moment for Monument and the UK deposit market. Partnering with Midnight allows us to bring something genuinely new to our clients in the coming months. It reflects what's possible as both a UK-regulated bank and a fast-moving fintech."

This first phase focuses on bringing client deposits onto the Midnight network. Beyond that, we will explore tokenised investment products and new lending options within the Monument app.

To read the full announcement, visit CoinDesk.