European Financial Institutions Launch Regulated Layer One Blockchain Network
Regulated Layer One (RL1), a new blockchain network, has gone live in Luxembourg as an European cooperative. The network is backed by 10 major European financial institutions, including ABN AMRO, Cecabank, and Natixis CIB. RL1 aims to cater to regulated financial markets and tokenized assets.
The founding members of RL1 have equal decision-making power in network governance and development. The private permissioned network is built on the infrastructure developed by Secure Worldwide Interbank Asset Transfer (SWIAT), a German fintech company. SWIAT has transferred ownership of the platform to the cooperative.
According to SWIAT, their platform processed over 50 billion euros in transactions during its three years of operation. RL1 plans to utilize blockchain technology for digital currencies, tokenized bonds, collateral, and settlement.
Henning Vollbehr, former Managing Director of SWIAT, will lead RL1. The network has received support from KfW and L-Bank, and is in talks with institutions such as NatWest to join the network.