Article
[UK challenger bank Monument plans to tokenize 250000000 in retail GBP deposits]
Although Wall Street giants such as JPMorgan and Citi already process vast sums through blockchain, tokenized payment services remain primarily aimed at institutional clients and permissioned networks. JPMorgan's Kinexys blockchain platform has processed more than 3000000000000 USD, while Citi Token Services processes tens of billions in USD cross-border payments daily; neither is open to ordinary savers. UK challenger bank Monument Bank is seeking to fill this gap. With a balance sheet of approximately 2400000000 USD, the bank plans to tokenize up to 250000000 in retail customer GBP deposits (approximately 335000000 USD). These deposits will continue to accrue interest, be fully backed by the bank, be redeemable for GBP at 1:1, and be protected by the Financial Services Compensation Scheme. The project uses zero-knowledge proofs to protect customer data and meet regulatory requirements, without requiring users to understand or use cryptocurrency directly. Monument Bank founder Mintoo Bhandari said that most tokenization projects are currently internal bank initiatives and have not yet enabled retail users to participate in tokenization directly. Over the longer term, subject to compliance requirements, the bank plans to offer services such as fractional private equity, tokenized structured products, and Lombard loans through its standard banking app, and is considering licensing the relevant infrastructure to other banks through its subsidiary, Monument Technology.