Monument Bank delays retail tokenized deposits due to UK regulatory issues

Monument Bank, the UK challenger bank that made waves earlier this year with its plan to bring tokenized deposits to retail customers via a public blockchain, has delayed its rollout, citing regulatory complications in the United Kingdom. The bank had positioned itself as a pioneer among UK-regulated institutions by announcing it would tokenize up to £250 million in customer deposits on the Midnight network. That plan is now on pause as the bank navigates what appears to be an evolving and uncertain regulatory landscape for blockchain-based banking products. What Monument originally promised Back in March 2026, Monument laid out an ambitious blueprint. The bank, which serves over 100,000 customers and holds approximately £7 billion in deposits, said it would begin mirroring retail savings balances on Midnight, a privacy-focused public blockchain that uses zero-knowledge proofs to keep transaction data visible only to the bank and its clients. The pitch was compelling: tokenized deposits would remain fully backed 1:1 by pounds sterling, continue earning interest, and stay protected under the UK’s Financial Services Compensation Scheme. Customers wouldn’t need to touch a wallet or ma...