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In a move that shows the growing convergence between traditional banking and blockchain technology, Monument Bank has announced plans to introduce tokenised retail deposits using blockchain infrastructure.

The initiative, developed in collaboration with the Midnight Foundation, aims to allow customers to hold digital versions of their bank deposits while maintaining the same protections and benefits as conventional savings accounts.

Unlike cryptocurrencies, these tokenised deposits are not separate assets. Instead, they act as digital representations of funds already held within the bank. Each token is backed one-to-one by traditional deposits, meaning customers can still redeem their holdings in pounds sterling while earning interest as usual.

The project is expected to begin with a rollout of up to £250 million in deposits. This marks an early step in what could become a broader transformation in how banks manage and deliver financial products using blockchain systems.

Beyond simple tokenisation, the bank is planning a phased expansion of services. Future stages may introduce access to tokenised investment products, including asset classes such as private equity and commodities. Traditionally, these opportunities have been limited to institutional investors or high-net-worth individuals, but tokenisation could make them more widely accessible.

Another planned feature includes the ability for customers to borrow against their tokenised assets. This approach would allow users to unlock liquidity without needing to sell their investments, reflecting services typically associated with private banking.

An important component of the initiative is the use of privacy-focused blockchain technology. The infrastructure is designed to ensure that sensitive financial data remains accessible only to authorised parties, addressing regulatory concerns around transparency and data protection in decentralised systems.

The development comes as financial institutions worldwide continue to explore tokenisation as a way to improve efficiency and expand access to financial markets. While many projects have focused on institutional use, this approach places retail customers at the centre, potentially marking a shift toward more mainstream adoption of blockchain-powered banking solutions.