Ten leading European financial institutions have launched Regulated Layer One. We break down what users need to know.
Regulated Layer One (RL1) is a cooperative blockchain network for issuing tokenized bonds, digital money, and interbank settlements. The initiative is structured as a European Cooperative Society, headquartered in Luxembourg. Each participant has equal voting rights in network governance and development.
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The cooperative includes ABN AMRO, Cecabank, Chartered Investment, Crédit Mutuel Alliance Fédérale, DekaBank, DZ BANK, LBBW, Natixis CIB, SC Ventures, and Seturion. The network is built on SWIAT’s infrastructure, which has processed more than 50 transactions worth over €700 million in three years. Former SWIAT Managing Director Henning Volber has been appointed head of RL1.
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How RL1 Works: Cooperative Model and Equal Voting Rights
Unlike many blockchain initiatives controlled by a single company, RL1 is structured as a cooperative. Each of the ten founding banks has equal voting rights in network governance. The aim is to ensure infrastructure neutrality and prevent any single player from dominating. The network is private and permissioned, meeting the requirements of regulated financial institutions.
The technical foundation is SWIAT, developed by German fintech Secure Worldwide Interbank Asset Transfer. The developer transferred network rights to the cooperative but remains a software and services provider. SWIAT already supports use cases like securities tokenization. State development banks KfW and L-Bank continue to support the project. Talks are ongoing with other banks, including NatWest.
Read more: What MiCA Still Doesn’t Solve — Europe’s Biggest Crypto Regulation Problems
RL1’s Goal: Overcoming Fragmentation and Scaling Tokenization in Europe
RL1’s primary goal is to overcome network fragmentation in the regulated financial sector and create a neutral, pan-European DLT infrastructure for tokenized assets, digital money, and next-generation financial services. As Volber put it, “RL1 will serve as the connective infrastructure for Europe’s digital financial market, enabling institutions to move from isolated tokenization initiatives to an integrated, liquid, and scalable ecosystem.“
The initiative is a response to growing EU demand for DLT solutions. RWA projects are moving from pilots to scalable infrastructure. The platform’s development coincides with ECB momentum and the growth of stablecoins and tokenized money market funds. The infrastructure meets all IT security requirements for financial institutions.
Read more: BNY Launches Blockchain System for Tokenized Funds
Context: Digital Euro and Regulatory Framework
The RL1 launch comes as Europe’s digital asset regulatory framework takes shape. On June 23, the European Parliament’s Economic and Monetary Affairs Committee supported digital euro provisions. The asset’s architecture relies on zero-knowledge proofs, enabling transfers to be validated without revealing personal information. The ECB will not have access to users’ personal identification data. Lawmakers will impose limits on digital euro holdings per citizen, with mandatory reviews every two years. Banks and payment providers from EU countries outside the eurozone will be able to distribute the digital euro under common rules, with ECB oversight.
The RL1 launch is a significant step toward a pan-European infrastructure for tokenized assets. The cooperative model with equal voting rights could offer an alternative to the private blockchain solutions currently dominating the market.
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