Midnight (NIGHT), a privacy-focused blockchain yet to launch its mainnet, has secured a landmark partnership with UK-based Monument Bank, a Bank of England-regulated institution managing approximately £7 billion ($9 billion) in deposits. The deal involves the tokenization of retail customer deposits, with the first phase targeting up to $335 million—a sum that reportedly exceeds the total value of all stablecoins on the Cardano network combined.
Charles Hoskinson, founder of Cardano and the Midnight project, described the Monument Bank agreement as "one of the largest deals we've ever done," suggesting it could bring "hundreds of millions to billions in total value locked (TVL) to the Midnight ecosystem." The partnership is structured in three phases: Phase one focuses on tokenizing deposits, phase two introduces tokenized investment products like private equity and commodity funds, and phase three adds Lombard-style lending against those holdings.
The announcement triggered a significant spike in weighted sentiment for NIGHT, jumping to 4.502 on March 25, the highest reading in recent data. However, the token's price action presents a contrasting technical picture. NIGHT is currently trading around $0.0455, having recovered from a weekly low of $0.043. Analysts note a potentially bearish "inverted cup and handle" pattern forming on the daily chart, with a critical neckline at $0.041. A breakdown below this level could signal further downside, while a close above $0.056 would invalidate the pattern.
The news has also sparked introspection within the Cardano (ADA) community. Observers like Cardano YODA are questioning whether Cardano's decade-long development, focused on decentralization and formal methods, has missed a crucial ingredient for institutional adoption: privacy. The success of Midnight's privacy-first architecture in attracting a major bank deal raises questions about Cardano's technological roadmap and how interconnected the two IOG-managed ecosystems will remain.
