Latham Advises Midnight Foundation on Partnership With Monument Bank

Latham & Watkins has advised the Midnight Foundation on its partnership with Monument Bank, a leading UK digital bank, to become the first UK bank to tokenize retail customer deposits, which generate interest similar to traditional deposits, on a public blockchain, the Midnight network.

The initiative is designed to give Monument’s mass-affluent customers the opportunity to have fully protected bank deposits mirrored on Midnight’s privacy-enhancing blockchain, the first step of enabling the ability to access tokenised asset products in the future. The launch is the first step in building a programmable financial environment in which savings, investments, and lending can operate with greater flexibility and accessibility for customers.

The first phase will bring up to £250 million of Monument client deposits onto Midnight’s network, represented as digital tokens corresponding one-to-one with funds held at the bank. The deposits will remain subject to existing regulatory protections and redeemable in pounds sterling (GBP).

The Latham team was led by London counsel Samantha Peacock on corporate matters; London partner Christian McDermott, with associates Clarence Cheong, Callum Lee, and Sophia Shum on data and technology matters; and London partner Stuart Davis, with Singapore associate Sam Maxson on fintech matters.