**[Monument Bank Delays Retail Tokenized Deposits Due to UK Regulatory Issues]** According to a report by Golden Finance, on September 11, London challenger bank Monument Bank postponed its £250 million (approximately $330 million) UK retail bank deposit tokenization project by several months. The delay was caused by the bank's inability to find a local crypto custody provider in the UK that meets Financial Conduct Authority (FCA) standards and can handle zero-knowledge privacy proofs. Mintoo Bhandari, founder of Monument Bank, stated that the bank originally planned to tokenize customer deposits on the privacy-focused blockchain Midnight. The bank had hoped to launch the world's first tokenized deposits two months ago but now expects to roll out the service to retail customers in November, requiring an additional two months. To meet regulatory requirements, the bank expanded its search for custody partners overseas and ultimately found an FCA-approved Canadian custody institution. Midnight is a privacy-first Layer 1 blockchain project funded by Charles Hoskinson. It uses zero-knowledge proofs to retain customer information within Monument's system while allowing the bank to demonstrate compliance on-chain and provide audit records to regulators. Monument Bank announced the project in March this year, aiming to offer tokenized private equity, structured products, and automated Lombard loans to "mass affluent" customers with investable assets ranging from £50,000 to £5 million. Bhandari noted that customer deposits will still accrue interest, be fully backed by Monument, and can be redeemed 1:1 for pounds sterling. Deposits will also be protected under the Financial Services Compensation Scheme (FSCS), with a limit of £120,000 per individual or company.