Monument Bank Halts Tokenized Deposit Rollout Amid UK Regulatory Hurdles

Monument Bank has put on hold its plans to introduce tokenized deposits for retail customers in the UK, citing regulatory challenges. The bank had initially planned to tokenize up to £250 million in customer deposits on the Midnight network.

The bank's use of blockchain technology would have allowed customers to access their deposits without needing to manage digital assets directly. However, the project has been delayed due to unclear regulations surrounding blockchain-based banking products.

The UK's Financial Services Compensation Scheme would still provide protection for tokenized deposits, and interest rates would remain unaffected. Monument Bank aimed to target mass-affluent clients with investable assets between £50,000 and £5 million who value innovation without the complexities of crypto self-custody.