Ten European Banks Launch RL1 Blockchain Cooperative in Luxembourg

Ten European financial institutions launched Regulated Layer One (RL1), a blockchain cooperative for regulated financial markets and tokenized assets, on Tuesday. The cooperative was established as a European Cooperative Society in Luxembourg with founding members including ABN AMRO, Cecabank, Chartered Investment, Crédit Mutuel Alliance Fédérale, DekaBank, DZ BANK, LBBW, Natixis CIB, SC Ventures and Seturion. RL1 operates as a private, permissioned network designed to reduce fragmentation caused by financial institutions operating separate distributed ledger systems, supporting institutional use cases including digital money, tokenized bonds, collateral and blockchain-based settlement.

Founding Members Establish Equal Governance Structure

The group announced that RL1 had been established as a European Cooperative Society in Luxembourg and had begun operations. Each member will have equal decision-making rights over the network's governance and development. Founding members include ABN AMRO, Cecabank, Chartered Investment, Crédit Mutuel Alliance Fédérale, DekaBank, DZ BANK, LBBW, Natixis CIB, SC Ventures and Seturion.

SWIAT Infrastructure Processes Over 700 Million Euros

The private, permissioned network is based on infrastructure developed by German fintech Secure Worldwide Interbank Asset Transfer (SWIAT), which has 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. Former SWIAT Managing Director Henning Vollbehr will lead RL1.

RL1 Network Supports Institutional Digital Asset Use Cases

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. KfW and L-Bank will continue supporting the initiative. RL1 said it is in discussions with additional institutions, including NatWest, about joining the network.

FAQ

What is RL1 and when was it launched? Regulated Layer One (RL1) is a blockchain cooperative launched on Tuesday by ten European financial institutions. It was established as a European Cooperative Society in Luxembourg for regulated financial markets and tokenized assets.

How much transaction volume has the RL1 network processed? The platform has processed more than 50 transactions worth over 700 million euros (about $808 million) during three years of production use, according to SWIAT, the German fintech that developed the underlying infrastructure.