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Monument Bank pushes back U.K. tokenized retail deposits rollout
The London-based challenger bank now expects to start tokenized retail deposits by November after an FCA custody hurdle forced a delay.
CoinDesk reports that Monument Bank has delayed the launch of U.K. retail tokenized deposits, citing regulatory and custody issues tied to Financial Conduct Authority requirements.
The plan, which aims to tokenize 250 million pounds of retail bank deposits on the Midnight blockchain, had fallen several months behind schedule because Monument could not find a local crypto custodial service able to meet strict FCA standards and handle zero-knowledge privacy proofs.
Monument said it expanded its search internationally and tapped an FCA-approved custodian in Canada, though the bank declined to identify the company involved. The bank now expects to roll out tokenized deposits by November.
According to CoinDesk, the deposits are intended for clients with investable assets between 50,000 pounds and 5 million pounds, with balances remaining interest-bearing, fully backed by Monument, and redeemable one-for-one in pounds sterling, while staying covered by the Financial Services Compensation Scheme up to 120,000 pounds per person or company.