Summary
- Monument Bank said it will tokenise £250 million of retail customer deposits on Midnight.
- It explained that tokenised deposits will continue to pay interest and retain FSCS legal protection, with a full guarantee and 1:1 redemption for British pounds.
- Monument Bank is said to currently hold £7 billion in deposits and plans to expand into tokenised investment products such as commodities funds.
Forecast Trend Report by Period
UK’s Monument Bank is pursuing a plan to tokenise deposits worth £250 million.
According to CoinDesk on the 25th (local time), Monument Bank said it would tokenise £250 million of retail customer deposits on Midnight (NIGHT) that day. CoinDesk reported, “This is the first time a UK-regulated bank has attempted (deposit tokenisation) on a public blockchain.”
Interest on the deposits will continue to be paid even after tokenisation. Legal protection under the UK’s Financial Services Compensation Scheme (FSCS) for the deposits will also remain in place. Monument Bank explained that “(the tokenised deposits) are fully guaranteed and redeemable 1:1 for British pounds.”
Funds deposited at Monument Bank are said to currently total £7 billion. The bank said, “In Phase 1 (of tokenisation), we will start by reflecting savings balances as-is on Midnight’s privacy-focused blockchain.”
Meanwhile, Monument Bank plans to expand the business into tokenised investment products such as commodities funds in the future.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
