RL1 Network Has Little to Show So Far

RL1 is a shared blockchain network established by ten European financial institutions. Its track record to date, however, is far from impressive. Over the past three years, the infrastructure has processed just over 50 transactions worth more than €700 million, or approximately $808 million.

Such a small number of transactions highlights a recurring problem with many banking blockchain projects. Financial institutions announce groundbreaking solutions but later use them only on a limited scale. Private technology companies often move faster and are more successful at bringing their products to market. RL1 still has to prove that a joint banking initiative can achieve a similar pace of development.

The network officially began operating on Tuesday as a European cooperative headquartered in Luxembourg. It was founded by ABN AMRO, Cecabank, Chartered Investment, Crédit Mutuel Alliance Fédérale, DekaBank, DZ BANK, LBBW, Natixis CIB, SC Ventures and Seturion. Each member has an equal say in the project’s governance and development.

RL1 uses private infrastructure that is accessible only to authorized participants. The technology was developed by German fintech company Secure Worldwide Interbank Asset Transfer, known as SWIAT, which has now transferred the rights to the network to the cooperative.

The platform is designed to support digital money, tokenized bonds, collateral and blockchain-based settlement. By providing shared infrastructure, it aims to reduce the fragmentation caused by banks relying on separate systems.

RL1 will be led by Henning Vollbehr, a former managing director at SWIAT. The project will continue to receive support from KfW and L Bank. Discussions are also underway with additional financial institutions, including NatWest.

The coming months will show whether RL1 has a viable business case and can attract enough participants. Only then will it be possible to assess whether the network can become a competitive solution for Europe’s financial market.