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Cardano founder Charles Hoskinson has highlighted a new partnership on X between privacy-focused blockchain Midnight and UK-regulated Monument Bank, describing it as one of the most significant deals the ecosystem has seen so far.
Hoskinson believes the collaboration could unlock billions in total value locked (TVL).
Monument Bank to Tokenize £250M in Retail Deposits on Midnight Blockchain
Monument Bank revealed it aims to pioneer the tokenization of retail deposits on a public blockchain among UK-regulated institutions. For this rollout, the London-based challenger bank will rely on Midnight, the highly anticipated privacy-centric blockchain tied to Cardano, with its official debut set for the final week of March.
The integration will be introduced in three stages, starting with a target of £250 million ($335 million) in tokenized retail deposits. These digital assets will be fully backed, representing a one-to-one equivalent of the underlying fiat funds held by Monument Bank.
According to the announcement, the deposits will remain redeemable on a one-for-one basis in pounds sterling and safeguarded under existing UK regulatory frameworks. The initiative also highlights data privacy as a major barrier that has long slowed blockchain adoption within the banking industry.
 
It’s important to note that Midnight’s architecture leverages zero-knowledge (ZK) proofs to protect transaction data, ensuring that sensitive financial information remains private and visible only to the bank and its customers.
In simple terms, it acts like a smart curtain for blockchain activity—allowing users to reveal only selected details while keeping the rest hidden. Operating as a partner chain to the Cardano smart contract platform, Midnight is designed to deliver both privacy and regulatory compliance for decentralized applications.
In later stages, Monument Bank plans to introduce tokenized investment products, including private market and commodity funds, and eventually enable lending against these holdings directly within the Monument app.