Regulated liability network
A regulated liability network, or RLN, is a proposed shared-ledger model for recording and transferring money issued by regulated institutions. It brings tokenized commercial bank deposits and central bank money into a common transaction environment. The digital records represent amounts owed by the issuing institutions, preserving the distinction between the different forms of money.
In a regulated liability network, participating institutions could coordinate payments and settlement across those claims. A liability is an amount owed by an issuer, so each token represents a claim on the institution that issued it. Research pilots test how existing forms of money and their legal obligations could work through shared digital infrastructure.
Bank liabilities on a shared ledger
Bank money is a liability: a deposit is the bank's debt to its customer, and a central bank reserve is the central bank's debt to a bank. An RLN puts these liabilities on one programmable ledger without changing who owes what. The Federal Reserve Bank of New York described its version as a multi-asset, always-on, programmable infrastructure holding digital representations of central bank, commercial bank and regulated non-bank liabilities in US dollars, as The Block reported when the pilot started in November 2022.
That 12-week proof of concept used simulated data only. BNY Mellon, Citi, HSBC, Mastercard, PNC, TD Bank, Truist, U.S. Bank and Wells Fargo took part, with Swift for interoperability. An RLN token is a claim on a supervised bank or on the central bank, while a stablecoin is a claim on the company that issued it.
From experiment to live payments in the UK
UK Finance announced an experimentation phase for a UK RLN in April 2024. According to a summary by the law firm Addleshaw Goddard, the phase demonstrated programmable payments and the locking and unlocking of funds, and found the UK legal framework flexible enough for such a platform. The open points the lawyers list are reconciliation with bank accounting systems, integration cost and resilience, a commercial model with governance and funding, dispute resolution for third-party applications, and data privacy.
The follow-up is the Great British Tokenised Deposit (GBTD) pilot. Barclays, HSBC UK, Lloyds Banking Group, Monzo, Nationwide, NatWest and Santander use a platform that Quant built as shared infrastructure for tokenized commercial bank money, and the project was accepted into the Bank of England's Synchronisation Lab. In September 2026 UK Finance reported the completion of the retail live pilots: two remortgage completions, where the funds were locked and released automatically at completion, and one marketplace purchase, where the buyer's money moved only after the goods changed hands.
The same building blocks in the euro area
In the euro area, the building blocks of an RLN run under other names. German banks work on the Commercial Bank Money Token, a shared deposit token described on the page on tokenized deposits. The Eurosystem settles DLT transactions in central bank money through Pontes, and its Appia track weighs one shared network against several connected ones. The BIS tests a comparable model across currencies in Project Agorá, with tokenized reserves and deposits on one platform.
The legal line in the EU follows the issuer. A tokenized deposit remains a bank deposit, while a euro token from an e-money institution or a bank issued outside the deposit relationship is an e-money token under MiCA.
Upcoming events on digital money and payments in Germany
Finance Loop and tokenized bank money
Venturebloxx and Finance Loop are preparing the institutional report The Future of Money in Europe, with contributors such as J.P. Morgan Kinexys and Commerzbank on how banks compete with stablecoin issuers. At Capital & Code in Frankfurt, where Finance Loop is media partner, the Bundesbank, J.P. Morgan and Ubyx debate central bank money against deposits, tokenized deposits and stablecoins. Finance Loop is also a strategic partner of Frankfurt Main Finance and TechQuartier.
What is a regulated liability network?
A shared, programmable ledger for tokenized money of regulated issuers: central bank reserves, commercial bank deposits and e-money, all in one currency. Each token stays a liability of its issuer, under that issuer's supervision.
Is an RLN a central bank digital currency?
No. Central bank money is one of the liabilities on the network, and most tokens on it are deposits of commercial banks. A wholesale CBDC is a different design in which the central bank issues a token itself.
Which banks take part in the UK tokenized deposit pilot?
The participating banks are Barclays, HSBC UK, Lloyds Banking Group, Monzo, Nationwide, NatWest and Santander, on a platform built by Quant and convened by UK Finance.
How does an RLN differ from a stablecoin?
The issuer. A token on an RLN is a deposit or a reserve held at a supervised bank or a central bank. A stablecoin is a claim on its issuing company, backed by reserve assets, and in the EU it needs a MiCA license.
Regulated liability networks and Finance Loop
Finance Loop covers regulated liability networks in its Payments & Digital Money track, next to tokenized deposits, stablecoins and wholesale CBDC. Finance Loop brings people from banks, central banks, payment firms and their lawyers together at events in Frankfurt, Munich, Berlin and Hamburg.
Finance Loop is a professional network supporting the institutional use of emerging technologies in finance, such as AI, digital payments, cloud and blockchain solutions. Finance Loop helps its members build skills and personal networks in these fields: Investment & Digital Assets, Payments & Digital Money, Digital Infrastructure & Sovereignty, and Risk & Compliance.