Monument Bank said it will tokenize up to £250 million ($335 million) of retail customer deposits on the Midnight network, marking what it described as the first such initiative by a U.K.-regulated bank on a public blockchain.

Key Takeaways

• Monument Bank will tokenize up to £250 million in retail deposits on Midnight.

• Deposits remain fully backed, interest-bearing and FSCS-protected.

• The initiative targets mass-affluent clients rather than institutions.

• Midnight’s privacy-focused infrastructure enables compliant onchain banking.

• Future phases include tokenized investments and lending against onchain assets.

Retail Banking Moves Onchain

According to information from Midnight Foundation the London-based challenger bank said the tokenized deposits will function like traditional savings, remaining redeemable one-for-one in pounds sterling while continuing to earn interest. Crucially, they will also remain covered under the U.K.’s Financial Services Compensation Scheme, preserving the same protections as conventional deposits.

The rollout represents a shift in how tokenization is being applied within banking. While previous efforts have largely focused on institutional settlement or closed networks, Monument is extending the model to retail customers, starting with individuals holding between £50,000 and £5 million in investable assets.

The first phase will mirror customer balances on Midnight, a privacy-focused blockchain developed by Shielded Technologies, linked to the Cardano ecosystem. Transaction visibility will be restricted to the bank and its clients, aligning with regulatory and compliance requirements.

In an Interview for CoinDesk, shared by Midnight, Fahmi Sayed, President at Midnight Foundation noted that they are focused on finding the right partners. That’s why according to his statement they will work with Monument.

ICYMI: @CoinDesk spoke with Mintoo Bhandari and @F_ZK_Now about the new partnership with Monument Bank, where Midnight provides the privacy-enhancing infrastructure supporting tokenised deposits—enabling more efficient, onchain access while maintaining regulatory protections.

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— Midnight (@MidnightNtwrk) March 26, 2026

From Tokenized Deposits to Full-Service Onchain Finance

Monument’s longer-term strategy extends beyond deposits. The bank plans to introduce tokenized investment products, including exposure to private markets and commodities, followed by lending services collateralized by those onchain assets.

The initiative also has an infrastructure angle. Monument said its affiliate, Monument Technology, intends to offer tokenized deposit capabilities through a Banking-as-a-Service model, allowing other institutions to adopt similar systems.

This positions the project not just as a product rollout, but as a potential framework for broader adoption of tokenized banking services.

NYSE and Nasdaq Advance Tokenized Market Infrastructure

The New York Stock Exchange is moving deeper into digital asset infrastructure, partnering with Securitize to help design and build a platform for blockchain-based securities trading. Under a memorandum of understanding, Securitize will act as a key design partner and is expected to become the first digital transfer agent eligible to mint blockchain-native securities for corporate and ETF issuers on the planned Digital Trading Platform.

The initiative is focused on building institutional-grade infrastructure, including standards for tokenization and digital transfer agents, enabling onchain settlement while preserving the regulatory safeguards of traditional capital markets. The move reflects a broader effort to integrate blockchain into existing financial systems without disrupting core market structure.

Nasdaq Expands Global Tokenized Equities Push

At the same time, Nasdaq is advancing its own tokenization strategy following recent regulatory progress allowing securities to be traded and settled in tokenized form. The exchange has partnered with Kraken to distribute tokenized equities globally, while also collaborating with Boerse Stuttgart’s Seturion platform to expand access for European institutional investors.

Together, these developments point to a measured but accelerating shift toward blockchain-based market infrastructure, as major exchanges explore how tokenization can enhance efficiency, accessibility and settlement in public markets.

Technical Analysis: Midnight Price Structure

Recent price action for Midnight (NIGHT/USDT) shows a consolidation phase following a sharp upward move earlier in the week. The asset peaked near the $0.049–$0.050 range before retracing and stabilizing around $0.0465, indicating a cooling of short-term momentum.

The structure suggests a range-bound market, with support forming near $0.044 and resistance around $0.049. The failure to hold recent highs points to profit-taking rather than a full trend reversal, with buyers still stepping in at higher lows compared to earlier sessions.

Momentum indicators reflect a shift toward neutrality. The Relative Strength Index (RSI) is hovering in the mid-range around 35–45, suggesting neither overbought nor oversold conditions. This aligns with the observed consolidation, indicating the market is searching for direction.

Meanwhile, the MACD has crossed into negative territory after a recent peak, signaling weakening bullish momentum. However, the histogram remains relatively shallow, suggesting that downside pressure is not yet accelerating significantly.

Taken together, the technical setup points to a pause rather than a breakdown, with the next directional move likely dependent on broader market sentiment and continued developments around Midnight’s adoption.

Conclusion: Tokenization Enters Core Banking Infrastructure

Monument Bank’s move highlights a broader transition in financial markets, where tokenization is expanding from capital markets into core banking products.

By combining regulatory protections with blockchain infrastructure, the initiative demonstrates how traditional finance and onchain systems can begin to converge. If successful, it could provide a blueprint for how deposits, investments and lending evolve in a tokenized financial system – moving from experimentation toward real-world integration.