Midnight’s $250M Bank Deal: Will the Blockchain Revolution Finally Take Off?

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Midnight Network Goes Live With Privacy-First Blockchain Aimed at Real-World Finance

Key Takeaways

  • Midnight launches as a blockchain built around programmable, enforceable privacy.
  • Monument Bank plans to tokenize up to £250 million in retail deposits on the network – a first for a U.K.-regulated bank on a public blockchain.
  • Google Cloud, MoneyGram, and Worldpay are among the federated node operators supporting infrastructure at launch.
  • NIGHT token is down over 90% from its post-launch peak of roughly $0.45.

This new project addresses a key issue with current blockchains: they reveal too much information. Things like transaction details, who’s involved, and how money moves are generally public, which has prevented many traditional financial activities from moving onto the blockchain. The solution is a system that blends public and private data using advanced encryption. This encryption happens directly on the user’s device, meaning sensitive data theoretically stays secure and private.

— Midnight (@MidnightNtwrk)

As an analyst, I’ve been following the evolution of blockchain, and it’s clear to me that each generation has built upon the last. Bitcoin, or Satoshi’s creation, gave us a functional digital currency. Then Ethereum expanded that with the ability to program directly onto the blockchain. Cardano aimed to address the shortcomings of the previous generations by focusing on interoperability, scalability, and strong governance. Now, with Midnight, the focus is shifting to giving users back control of their identity and privacy – a critical next step in the evolution of this technology.

Monument Bank’s Tokenized Deposits

Monument Bank, a London-based digital bank, announced it will convert as much as £250 million (about $335 million) of its customers’ deposits into tokens on the Midnight network before its full launch.

The bank announced this as a groundbreaking step – the first time a U.K. bank has used a public blockchain for this type of service. These digital deposits are equivalent to traditional pounds and will continue to accrue interest, working just like regular savings accounts.

Infrastructure and Partners

The network is starting up with a unique setup where a group of established companies work together to operate it, following a specific set of agreed-upon guidelines. These companies include Google Cloud, MoneyGram, Worldpay, Bullish, eToro, Blockdaemon, Pairpoint by Vodafone, AlphaTON Capital, and Shielded Technologies.

Hoskinson highlighted the importance of major organizations getting involved, explaining that, for the first time, these groups are committing to both operating essential systems and creating real-world applications directly on a public network.

The current system is designed to be temporary. The Midnight Foundation plans to eventually become fully decentralized, but hasn’t announced a specific date for this change. According to Fahmi Syed, the Foundation’s President, this step-by-step approach is intentional, prioritizing network stability before allowing open access for everyone.

Tokenomics and a Struggling Token Price

Midnight operates with two tokens: NIGHT and DUST. NIGHT is used for governance and general utility, while DUST covers transaction costs and is earned based on how much NIGHT you hold. This system aims to separate the cost of transactions from the often-unpredictable price of the NIGHT token, making it easier for businesses to budget and operate – a common issue with transaction fees on networks like Ethereum.

Hoskinson highlights a “capacity exchange” system as a key feature of Midnight. He also explained that revenue generated by the protocol could be used to repurchase NIGHT tokens, which would reduce the token supply and help ensure the project’s long-term viability. Hoskinson believes Midnight will be a leading force in bridging the gap between traditional financial systems and blockchain technology.

What I find most exciting about Midnight is its potential for innovative tokenomics. The protocol could allow revenue generated to be used to buy back tokens – called ‘night’ – and return them to the Midnight Treasury. This creates a self-funding system for security and ongoing project development.

— Charles Hoskinson (@IOHK_Charles)

So far, the market hasn’t reacted very positively. NIGHT, a cryptocurrency, is currently trading over 90% lower than its peak price of around $0.45, which it reached shortly after launching in September 2025, based on data from CoinMarketCap. It’s still unclear whether the recent mainnet launch and announcement about Monument Bank will improve market sentiment.

What Comes Next

According to a post from the Midnight team on X, the first release is limited. Developers need to meet certain requirements (called Foundation criteria) and successfully test in a Preprod environment before their applications can go live. Also, those running federated nodes will operate on a private network for now.

The real test of Midnight’s potential will be how well Monument Bank implements its plan. The bank intends to convert up to £250 million of customer deposits into tokens – each token worth one pound, earning interest, and importantly, still protected by the U.K.’s financial safety net. This protection is key, as it means customers won’t face any extra risk. Successfully moving this much money onto a public blockchain, while staying within the rules, will be a more significant demonstration of Midnight’s viability for institutional use than any technical performance measure.

This article is for informational purposes only and shouldn’t be considered financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. It’s crucial to do your own research and talk to a qualified financial advisor before making any investment choices.

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2026-03-30 19:52