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Monument Bank has delayed the rollout of its planned retail tokenized deposits as it completes work with a new custody provider. Founder Mintoo Bhandari said the U.K. bank now expects a retail launch around November, several months later than originally planned.
Custody Requirements Push Launch Back
Monument announced in March that it planned to tokenize up to £250 million of customer deposits on Midnight, a privacy-focused public blockchain. Bhandari said in a Sept. 10 interview that the bank had initially expected the first deposits to be tokenized about two months earlier.
Bhandari said the delay followed difficulties finding a U.K.-based crypto custodian that could meet regulatory requirements while supporting Midnight’s zero-knowledge technology. Monument widened its search internationally and identified a Canadian custody provider, although Bhandari did not disclose its name. The bank is now working to complete the custody arrangement before offering the product to retail customers.
Deposits Will Remain Bank Liabilities
Monument’s planned tokens are digital representations of conventional savings deposits rather than independently issued stablecoins. The bank says each token will represent a 1:1 claim on pounds sterling held as a Monument deposit.
The underlying deposits are intended to remain interest-bearing liabilities of Monument and eligible for Financial Services Compensation Scheme protection. Customers will not need to buy or independently manage crypto assets to use the product.
Midnight uses zero-knowledge proofs to verify information without exposing the underlying customer data publicly. Monument has cited that privacy structure as central to using a public blockchain within a regulated banking environment.
Midnight Partnership Targets Retail Customers
The first phase targets up to £250 million in tokenized deposits. Monument originally described the initiative as a first for a U.K.-regulated bank using a public blockchain for retail deposits.
Midnight and Monument said in March that the system would mirror customers’ bank deposits onchain. The deposit itself remains a claim against Monument rather than becoming a separate crypto asset. The project is aimed initially at Monument’s mass-affluent customer base. Later phases could extend the infrastructure to tokenized investments and lending products, although those services have not yet launched.
November Launch Still Depends on Implementation
Monument’s latest target puts the retail rollout around November 2026, but the bank has not announced a firm launch date. The custody provider also remains unnamed while onboarding work continues.
The delay does not change the basic design disclosed in March. Monument still plans to use Midnight for the blockchain layer while keeping customer deposits within its regulated banking structure.
