Ten European financial institutions have launched Regulated Layer One, a jointly owned blockchain cooperative intended for regulated markets and tokenized assets. The network began operations on Tuesday after being established 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. Each participant holds equal decision-making authority over governance and development of the network.

The private permissioned system relies on infrastructure previously developed by German fintech Secure Worldwide Interbank Asset Transfer. Ownership of that platform has been transferred to the cooperative. The underlying technology processed more than 50 transactions with a combined value exceeding 700 million euros during three years of production use.

The network targets institutional applications such as digital money, tokenized bonds, collateral management and blockchain-based settlement. A shared system is intended to limit the fragmentation that arises when institutions maintain separate distributed ledger platforms.

Henning Vollbehr, formerly managing director of the original platform provider, will head the cooperative. KfW and L-Bank will maintain their support, and discussions continue with further institutions, including NatWest, regarding potential membership.