Monument Bank delays retail tokenized deposits, cites regulatory issues in the UK
Monument Bank, a London-based challenger bank, has postponed the launch of its retail tokenized deposits, citing regulatory issues in the UK. To satisfy the Financial Conduct Authority’s requirements, the bank engaged a Canadian custodian and now expects to introduce the product by November.
Why It Matters
The delay highlights the regulatory hurdles that can slow fintech innovation in the UK and shows firms may need cross-border arrangements to comply with domestic rules. How banks navigate these requirements could affect the pace at which tokenized deposit products reach retail customers.
Key Facts
- Bank: Monument Bank
- Headquarters: London, UK
- Product delayed: Retail tokenized deposits
- Reason given: Regulatory issues in the UK (Financial Conduct Authority requirements)
- Action taken: Tapped a Canadian custodian to meet FCA requirements.
Monument Bank, a challenger lender based in London, has pushed back the rollout of its retail tokenized deposit product, attributing the delay to regulatory issues in the UK. The bank said it took additional steps to satisfy requirements set by the Financial Conduct Authority.
To address the FCA’s regulatory demands, Monument Bank engaged a Canadian custodian as part of its compliance solution. The bank described the arrangement as necessary to meet the regulator’s standards before making the product available to retail customers.
Following the adjustments, Monument Bank now expects to launch its retail tokenized deposits by November. The bank positioned the revised timeline as contingent on completing the regulatory steps required under UK rules.
The episode underscores the regulatory complexity firms can face when introducing tokenized financial products in the UK and illustrates one approach — using a foreign custody arrangement — to meet domestic regulatory obligations.
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