European Financial Institutions Launch RL1 Cooperative Blockchain Network
Vexoda Newsroom
Ten European financial institutions have formed the RL1 cooperative blockchain network, aiming to support regulated financial markets and tokenized assets. This move could streamline operations by red
Ten prominent European financial institutions, including ABN AMRO, DekaBank, and Natixis CIB, have launched Regulated Layer One (RL1), a cooperative blockchain network designed for regulated financial markets and tokenized assets.
The RL1 network began operations as a European Cooperative Society in Luxembourg. Founding members include ABN AMRO, Cecabank, Chartered Investment, Crédit Mutuel Alliance Fédérale, DekaBank, DZ BANK, LBBW, Natixis CIB, SC Ventures and Seturion.
RL1 operates on infrastructure developed by German fintech Secure Worldwide Interbank Asset Transfer (SWIAT), which has now transferred ownership to the cooperative. SWIAT reported processing over 50 transactions worth approximately $808 million during three years of operational use.
The private, permissioned network is designed for institutional use cases such as digital money, tokenized bonds, collateral, and blockchain-based settlement. RL1 aims to reduce fragmentation by enabling financial institutions to operate on a shared network rather than separate systems.
Former SWIAT managing director Henning Vollbehr will lead the new cooperative. KfW and L-Bank are providing ongoing support, with discussions underway for additional institutions like NatWest to join the network.
This development could have significant implications for the financial sector by fostering greater collaboration and standardization in blockchain technology use among regulated entities. It may also encourage wider adoption of tokenized assets across Europe's financial landscape.
Traders should monitor RL1’s progress, particularly its integration with existing financial systems and potential partnerships with other institutions.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.