German blockchain infrastructure provider SWIAT has completed the launch of Regulated Layer One (RL1), a collaborative blockchain initiative created to provide a shared digital infrastructure for Europe’s regulated, according to a recent press release.

The new network is now operating as an independent European Cooperative Society in Luxembourg, the Frankfurt-based fintech said.

RL1 debuts with 10 founding financial institutions after welcoming Cecabank and Crédit Mutuel Alliance Fédérale as new members.

Other participants include ABN AMRO, DekaBank, DZ BANK, LBBW, Natixis Corporate and Investment Banking, SC Ventures, Seturion and Chartered Investment, while KfW and L-Bank will continue supporting the project’s development.

“I am delighted to see so many leading financial institutions supporting the RL1 initiative. This strong commitment demonstrates the growing conviction across the industry that a shared, regulated digital market infrastructure is essential to unlocking the full potential of digital assets,” Dr. Timo Reinschmidt, CEO and CCO of SWIAT, commented on the launch. 

Former SWIAT chief Henning Vollbehr has transitioned to lead RL1 as managing director, and the cooperative is already in discussions with additional banks, including NatWest, as reported.

“RL1 is the result of our collective work and the evolution of SWIAT, which I have had the privilege of helping to shape over the past four years,” Vollbehr stated.

“Going forward, RL1 will serve as the connecting infrastructure for Europe’s digital financial market, enabling participating institutions to move from isolated tokenization initiatives to an integrated, liquid, and scalable capital market ecosystem,” he added.

Although governance has shifted to the cooperative, SWIAT will continue to serve as RL1’s core technology provider, offering blockchain solutions for token issuance, custody, collateral management and other digital capital markets applications.

The company said its production-ready DLT network has completed more than 50 transactions totaling over €700 million during the past three years, providing the technological foundation for the new network.

RL1 aims to establish a neutral European blockchain infrastructure that improves interoperability and governance while reducing fragmentation among regulated financial institutions.

The initiative expects to onboard more members and broaden institutional use cases as demand grows for tokenized securities, digital money, collateral solutions and blockchain-based settlement infrastructure.

“RL1 is the result of a collective effort and builds on the foundations that have been established over the past several years. It is exciting to see this vision becoming a reality and to witness the industry coming together to create an open, interoperable, and scalable infrastructure for Europe’s digital capital markets,” Dr. Reinschmidt said.