As the first regulated UK bank to use a public blockchain, Monument Bank has revealed ambitions to tokenise up to £250 million in customer deposits.
These deposits will continue to be fully backed, interest-bearing, and redeemed in pounds, according to the bank. Additionally, the UK’s Financial Services Compensation Scheme will continue to safeguard them, guaranteeing client security.
The project will operate on the Midnight blockchain, which was created by a company associated with the Cardano ecosystem. The platform prioritises privacy by making sure that only the bank and its clients can see transaction details.
Monument is concentrating on retail consumers, in contrast with previous tokenisation initiatives that mostly targeted institutions. The programme will first be accessible to people who have substantial investable assets.
The bank plans to expand the offering in phases. It also wants to offer tokenised investment products and lend against these digital assets within the app.
This action is part of a larger trend where banks are studying blockchain technology to update financial services. If it works, it might inspire other organisations to use comparable models.
You need to login in order to Like
Leave a comment