Linklaters Advises SWIAT on Establishing European Cooperative for Regulated Layer One Blockchain Initiative

Linklaters has advised fintech company SWIAT on establishing a European cooperative structure in Luxembourg for the Regulated Layer One (RL1) blockchain initiative. The new entity, incorporated as a European Cooperative Society (SCE), includes ten founding banks from Germany, the Netherlands, France, and Spain. Built on SWIAT's DLT platform, which has facilitated over €700 million in transactions, RL1 aims to provide a shared, compliant infrastructure for tokenized assets and digital money.

RL1 European cooperative establishment

• ▪The ten founding members of the Regulated Layer One (RL1) cooperative include banks from Germany, the Netherlands, France, and Spain.
• ▪Linklaters advised fintech company SWIAT on establishing a European cooperative structure for the Regulated Layer One (RL1) blockchain initiative.
• ▪The Regulated Layer One (RL1) cooperative has been incorporated in Luxembourg as a European Cooperative Society (Société Coopérative Européenne, SCE).

European Cooperative Society legal structure

• ▪The European Cooperative Society (SCE) is a legal form that is rarely used by businesses.
• ▪The European Cooperative Society (SCE) legal form is suited for projects where independent participants from different countries pursue shared interests beyond pure profit generation.

RL1 blockchain infrastructure

• ▪SWIAT's distributed ledger technology (DLT) platform has been operational for three years and has facilitated more than 20 transactions with an aggregate volume exceeding €700 million.
• ▪The Regulated Layer One (RL1) network is built on SWIAT's distributed ledger technology (DLT) infrastructure, which is transferred to the cooperative.

RL1 regulatory compliance objectives

• ▪Regulated Layer One (RL1) aims to overcome the fragmentation of blockchain networks in financial services and provide a shared infrastructure for tokenized assets, digital money, and digital capital markets applications.
• ▪Regulated Layer One (RL1) is designed as an open, neutral, and compliance-focused distributed ledger technology (DLT) network for the European financial sector.

Linklaters advisory team

• ▪The Linklaters advisory team included partners Dr. Michael Leicht, Dr. René Döring, Kaan Gürer, and Atif Bhatti, alongside counsels Sebastian Dey and Marie Sinniger.
• ▪Linklaters advised SWIAT with an international team led by partners Mario Pofahl and Florence Forster, and managing associate Dr. Maximilian Mann.