European financial institutions launch RL1 blockchain
European financial institutions launch RL1, a member-owned cooperative blockchain for regulated markets and tokenized assets. Ten banks including ABN AMRO, DekaBank and Natixis CIB founded the Luxembourg-based European Cooperative Society and began operations with equal decision-making rights for each member.
Key Takeaways
- Ten European financial institutions have launched Regulated Layer One (RL1) as a jointly owned blockchain cooperative.
- RL1 is established as a European Cooperative Society in Luxembourg, with equal governance rights for every member.
- The private, permissioned network uses infrastructure from German fintech SWIAT, which transferred ownership to the cooperative.
- SWIAT's platform previously processed more than 50 transactions worth over €700 million across three years of production use.
- Target use cases include digital money, tokenized bonds, collateral and blockchain-based settlement.
What is the RL1 cooperative blockchain network?
Regulated Layer One, or RL1, is a member-owned blockchain cooperative built for regulated financial markets and tokenized assets. The network is private and permissioned, aiming to give European institutions a shared distributed ledger rather than separate systems.
According to Cointelegraph, the group announced on Tuesday that RL1 had been established as a European Cooperative Society in Luxembourg and had begun operations.
Ownership of the network has moved from SWIAT to the cooperative, aligning control with the banks and financial firms that will use the ledger.
Which European financial institutions are founding members?
Founding members include ABN AMRO, Cecabank, Chartered Investment, Crédit Mutuel Alliance Fédérale, DekaBank, DZ BANK, LBBW, Natixis CIB, SC Ventures and Seturion. RL1 said each member will have equal decision-making rights over the network's governance and development.
Former SWIAT Managing Director Henning Vollbehr will lead RL1. KfW and L-Bank will continue supporting the initiative, while RL1 said it is in discussions with additional institutions, including NatWest, about joining the network.
Why does the RL1 launch matter for tokenized markets?
The blockchain is designed to support institutional use cases including digital money, tokenized bonds, collateral and blockchain-based settlement. RL1 said the shared network could reduce fragmentation caused by financial institutions operating separate distributed ledger systems.
The network is based on infrastructure developed by German fintech Secure Worldwide Interbank Asset Transfer (SWIAT), which has now transferred ownership of the network to the cooperative. SWIAT said the platform has processed more than 50 transactions worth over 700 million euros (about $808 million) during three years of production use.
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