Ten European Banks Unveil Regulated Layer-1 Blockchain Network to Power Tokenization

A major step forward in Europe’s digital finance vision: ten prominent financial institutions have launched a Regulated Layer-One (RL1) blockchain network, architected as a permissioned, institutionally governed ledger tailored for regulated tokenization and digital asset use across the capital markets.
(Source: Ledger Insights, KfW)

From SWIAT to RL1: A New Chapter for European DLT

The RL1 initiative builds directly upon the SWIAT DLT network, which has already processed over €600 million in transaction volume. Rather than starting from scratch, the founding institutions are evolving SWIAT into RL1 under a cooperative governance model, aiming for neutrality, interoperability, and regulatory alignment.
(Source: Ledger Insights, KfW)

Under this structure, partner banks will share equal financial responsibility, while SWIAT continues to operate as the software and services provider during the transition. The new entity will be established as a European Cooperative Society (SCE), with governance designed to ensure no single participant wields dominance.
(Source: KfW)

Strategic Design and Use Cases

RL1 is conceived not as a profit-driven venture, but as a shared infrastructure utility. Its purpose is to let regulated institutions deploy capital markets applications — tokenized debt, securities, digital bonds, and on-chain collateral — over a trusted, permissioned ledger.

From day one, use cases like bond tokenization will be available. Over time, institutions may build bespoke layers and apps on RL1, all while benefiting from shared security, compliance, and operational standards.
(Source: Ledger Insights)

By pooling resources and governance over a single layer, RL1 intends to avoid the fragmentation risks seen in siloed blockchain efforts, and accelerate European integration in tokenized finance infrastructure.
(Source: Ledger Insights, KfW)

Why This Matters for Europe’s Financial Architecture

Sovereign infrastructure: RL1 offers Europe a homegrown digital backbone, reducing reliance on non-EU networks and raising the bar on regulatory sovereignty.

Interoperability: With a unified ledger across participating institutions, cross-border and cross-market asset flows can become smoother and more composable.

Institutional trust: A regulated, permissioned environment lowers execution risk, giving CFOs, issuers, and investors more confidence in deploying tokenized assets.

Enabling scale: Critical mass matters—by coordinating ten major institutions from the start, RL1 may overcome the adoption and network effects hurdle that often hinder new infrastructure launches.

Challenges & Watchpoints Ahead

Governance balance: As the network grows, maintaining neutrality and preventing dominance by large players will be pivotal.

Regulatory alignment: RL1 must align with diverse securities, banking, and digital asset rules across EU jurisdictions.

Technical robustness: Ensuring high availability, fault tolerance, and performance at scale will be essential.

Evolving use case demand: Adoption will depend on launching meaningful capital markets protocols, not just infrastructure promise.

RL1 may well be a turning point: shifting Europe’s blockchain efforts from isolated pilots toward a genuinely shared, regulated rails infrastructure. If successful, it could become the default layer for tokenized finance across the continent.

Sources: Ledger Insights, KfW
Author: Brian LECLERE