Monument Bank Tests Tokenization for Retail Clients
Monument Bank, a challenger bank in the UK, is looking to tokenize 2.5 billion pounds of retail deposits on the Midnight private public chain.
The move aims to fill a gap in the market, as current tokenization services are mainly geared towards institutional clients and licensed networks.
JPMorgan's Kinexys platform has processed over $30 trillion in transactions, while Citi Token Services handles billions of dollars in cross-border payments daily. However, these services are not available to individual savers.
Monument Bank plans to offer tokenized deposits with interest, backed by the bank in full and redeemable on a 1:1 basis with pounds sterling.
The project utilizes zero-knowledge proof to protect customer data and meet regulatory requirements, without requiring users to understand or interact directly with cryptocurrencies.