Cardano (ADA) founder Charles Hoskinson announced that he has signed one of the largest deals ever for the Cardano and Midnight ecosystem.
Hoskinson argued that the collaboration could attract hundreds of millions or even billions of dollars in total value locked (TVL).
According to a statement from the Midnight Foundation, a strategic partnership has been established with Monument Bank, based in the United Kingdom. As part of this partnership, Monument Bank is set to become the first regulated bank in the UK to tokenize individual customer deposits on a public blockchain. Tokenized deposits will be represented as interest-bearing digital assets, fully backed by British Pounds (GBP), and will be reversible within existing regulatory frameworks.
The project will be built on the Midnight infrastructure. With Midnight’s privacy-focused blockchain technology, transaction data will only be accessible by authorized parties. This will both preserve the efficiency benefits offered by blockchain and ensure the privacy and compliance standards required by the regulated financial sector.
The initial goal is to tokenize around £250 million in deposits. This step is seen as the start of a broader roadmap. Going forward, the plan is to make financial instruments traditionally available only to institutional or high-net-worth individual investors, such as private equity, structured finance products and more flexible lending models, accessible to a wider audience.
Minuit is known as one of the side chains of the Cardano ecosystem.
*This does not constitute investment advice.
