Monument Bank Delays Retail Tokenization Amid Regulatory Hurdles
What happened: Monument Bank, a UK challenger, has postponed its plan to tokenize up to £250 million (~$335 million) of retail deposits on the Midnight blockchain.
What happened: Monument Bank, a UK challenger, has postponed its plan to tokenize up to £250 million (~$335 million) of retail deposits on the Midnight blockchain. The project, which would be the first of its kind by a UK-regulated bank on a public chain, has been delayed due to difficulties finding a crypto custodian that meets both FCA and zero-knowledge proof requirements.
Why it matters: While JPMorgan and Citi move trillions in tokenized assets among institutional clients, Monument’s effort to bring tokenization to retail customers underscores the regulatory and technical barriers facing broader adoption. The delay highlights the gap between institutional and retail innovation, as well as the challenge of aligning new blockchain technologies with existing financial regulations.