Monument Bank, a UK challenger bank, plans to tokenize as much as £250 million in retail customer deposits using blockchain-based infrastructure. The proposal stands out because most high-profile tokenization efforts from large financial firms have focused on institutional clients rather than everyday savers.
According to the source report, the bank intends to structure the deposits so they continue to function much like conventional bank balances. The tokenized deposits are expected to pay interest, be redeemable one-for-one in pounds, and remain covered by the Financial Services Compensation Scheme within applicable limits.
A retail-focused tokenization push
The planned offering would represent a rare attempt to bring tokenization directly to retail banking customers. While blockchain-based deposit and settlement products have been discussed widely across finance, the better-known initiatives from firms such as JPMorgan and Citigroup have largely been aimed at institutional use cases.
Monument Bank founder Mintoo Bhandari said there has not yet been a case of direct retail participation in tokenization. That framing underscores why the bank’s proposal is being watched as a potentially notable extension of the technology beyond wholesale finance.
Designed to resemble a normal deposit account
A central part of the plan is to shield customers from technical complexity. Bhandari said the service will be designed so users can access it like a standard deposit product, without needing to understand blockchain systems or crypto-related mechanics.
The reported structure keeps key features associated with ordinary deposits. Customers would receive interest, and the product would be set up for one-to-one redemption in pounds, rather than exposing depositors to a fluctuating conversion rate.
Protection and limits
The bank also said Financial Services Compensation Scheme protection would remain in place within the usual applicable limits. That detail is likely to be important for retail adoption, since deposit protection is one of the main distinctions between regulated bank deposits and many other digital asset products.
Even so, the report describes the initiative as a plan rather than a launched product. No broader rollout timeline, customer eligibility details, or operational milestones were included in the source material.
What else Monument is exploring
Beyond tokenized deposits, Monument Bank is exploring whether the same infrastructure could support additional retail investment and lending products. Areas under consideration include fractional ownership of private equity, tokenized structured products, and Lombard lending.
The next confirmed point is the bank’s stated intention to build deposit tokenization for retail use while preserving familiar banking features such as interest payments, pound redemption, and FSCS coverage within limits. Any expansion into other tokenized offerings appears, at this stage, to remain exploratory.
Source: en.bloomingbit.io