SWIAT is an existing EU blockchain network focused on capital markets. It was founded by DekaBank and includes LBBW and Standard Chartered as shareholders. Today SWIAT announced that together with seven additional large European institutions it is creating the Regulated Layer One (RL1) as a shared ledger which will use SWIAT as a foundation. To date SWIAT has processed more than €600 million in volume.
RL1 echoes several other networks such as the UK’s Regulated Liability Network (RLN) and Singapore’s Global Layer One. However, the RLN focused on payments more broadly, whereas RL1 is targeting capital markets. It also aligns with EU plans for a DLT-based single capital market, originally proposed by the European Central Bank’s Piero Cipollone. The ten founding RL1 institutions are:
Next steps include transitioning SWIAT to RL1 and defining the governance of the network under a European Cooperative Society. DekaBank will remain the software and service provider. While institutions can instantly deploy currently supported use cases such as bond tokenization, they will be able to develop their own applications.
The ten members will bear the costs equally. Given the cooperative structure, the network itself is not intended to be for profit. Instead, it will provide the foundation of interoperability on a permissioned DLT for participating institutions.
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