Midnight has teamed with UK digital bank Monument to tokenize approximately £250 million in cash deposits on a blockchain. The deal marks the first instance of a regulated bank tokenizing deposits on a public chain while retaining FSCS protection and interest payments. Monument targets high-net-worth clients with a minimum £25,000 deposit, and aims to enable flexible, on-chain use of customer funds. This collaboration is described as a flagship example of asset tokenization.
Industry observers describe the deal as a flagship example of asset tokenization in practice, with Hoskinson noting that Cardano infrastructure is typically part of such agreements beyond Midnight. Midnight’s privacy-centric chain uses zero-knowledge proofs to mask transaction details while leveraging Cardano’s security, creating a tightly integrated two-chain setup that benefits both ecosystems. The arrangement links the chains technically, so growth in one positively influences the other.
The existing DeFi deposits stand at about $146 million, a far cry from Ethereum’s $760 billion and Solana’s $8.7 billion. ADA’s price has fallen by more than 90% from its 2021 peak. This deal goes beyond simple deposit tokenization; in a second phase, real-world asset investments will be provided on-chain, and later collateralized lending will be added, enabling clients to obtain liquidity without selling assets. Midnight says this could lower funding costs relative to traditional finance.
Hoskinson called the deal a flagship, illustrating how blockchain is being commercialized in real financial markets. Market reaction was positive, with Midnight’s native token NIGHT rising around 3% within 24 hours. The collaboration suggests asset tokenization moving from experimentation toward actual financial services, and observers will watch whether this flagship arrangement can catalyze broader adoption across the Cardano ecosystem.
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