RL1 blockchain launch brings 10 European finance firms onto one network
RL1 has started operations in Luxembourg as a bank-backed cooperative network for regulated tokenized finance.
By Sofia Marchetti · Columnist
· 3 min read
The RL1 blockchain launch gives 10 European financial institutions a shared network for tokenized assets, a sign that traditional finance is still building blockchain rails even as crypto prices get most of the attention. RL1 said Tuesday it has begun operations as a member-owned cooperative for regulated financial markets.
RL1, short for Regulated Layer One, said it has been set up as a European Cooperative Society in Luxembourg. Its founding members are ABN AMRO, Cecabank, Chartered Investment, Crédit Mutuel Alliance Fédérale, DekaBank, DZ BANK, LBBW, Natixis CIB, SC Ventures and Seturion.
For retail investors, the headline is less about a new coin and more about market plumbing. Tokenized assets are traditional financial assets, such as bonds or collateral, represented on a blockchain so ownership and transfers can be recorded digitally.
What is the RL1 blockchain network?
RL1 is a private, permissioned blockchain, according to the cooperative. That means only approved participants can use the network, unlike public blockchains where anyone can typically connect and transact.
The network is designed for institutional uses including digital money, tokenized bonds, collateral and blockchain-based settlement. Settlement is the process of completing a financial transaction, including updating ownership records and, where relevant, payment.
RL1 said each member will have the same decision-making rights over governance and development. That cooperative structure is meant to keep control of the network shared across participating institutions rather than concentrated in a single operator.
Where did RL1 come from?
The network is built on infrastructure developed by Secure Worldwide Interbank Asset Transfer, the German fintech known as SWIAT. RL1 said SWIAT has transferred ownership of the network to the cooperative.
SWIAT said the platform has already handled more than 50 transactions over three years of production use. Those transactions were worth more than 700 million euros, or about $808 million, according to SWIAT.
That track record is part of the pitch to banks and other large financial firms. Instead of each institution running its own separate distributed ledger system, RL1 said a shared network could reduce fragmentation. Distributed ledger technology, or DLT, is the broader term for systems that record transactions across multiple computers rather than one central database.
Who is running RL1?
Henning Vollbehr, previously a managing director at SWIAT, will lead RL1. The cooperative also said KfW and L-Bank will continue supporting the initiative.
RL1 said it is speaking with additional institutions about joining the network, including NatWest. The cooperative did not announce any further members beyond the 10 founding institutions.
The launch adds another example of banks using blockchain for back-office finance rather than consumer crypto trading. The practical goal is to make regulated assets easier to issue, move and settle across institutions that need controlled access, governance and compliance built into the system.
This story draws on original reporting from Cointelegraph.
