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SWIFT Taps Linea for Blockchain Messaging Pilot

SWIFT, the worldwide monetary messaging community, is working with over a dozen banks to check on-chain messaging utilizing Linea, the Ethereum layer-2 platform developed by ConsenSys.

Institutions together with BNP Paribas and BNY Mellon are collaborating within the initiative, which can also be thought of a stablecoin-like settlement token.

SWIFT and Global Banks Begin Linea Blockchain Messaging Trial

A source inside one financial institution stated the undertaking might mark “a technological transformation for the worldwide interbank funds business,” although improvement will take a number of months earlier than outcomes develop into clear.

SWIFT connects over 11,000 monetary establishments, transmitting cost directions however not funds. Its centralized mannequin will depend on intermediaries and legacy rails, which critics argue add complexity and delay. The pilot seeks to find out whether or not Linea’s zk-rollup structure—designed for quicker, scalable transactions with privacy-focused cryptography—can streamline messaging and settlement whereas assembly regulatory requirements.

The initiative follows SWIFT’s broader blockchain efforts. The community lately announced new guidelines for retail cross-border funds to extend pace and predictability. Global banks plan to trial stay digital asset transactions on their infrastructure from 2025.

Earlier pilots confirmed blockchain interoperability, with UBS and Chainlink serving to SWIFT complete tokenized asset transfers. The community additionally explored international digital asset transaction frameworks and considered integration with the XRP Ledger.

Linea, which launched its token this yr to help a $72 billion decentralized finance ecosystem, positions itself as an enterprise-ready setting for banks in search of compliance and scalability.

In a latest panel dialogue, SWIFT executives additionally addressed the pilot and the broader digital asset shift, and executives confused that the business is transferring into a brand new part.

We’re past experiments now. The query is scale—no matter whether or not the instrument is a tokenized deposit, a CBDC, a stablecoin, or a tokenized fund. It comes all the way down to what precisely we’re connecting and the place the worth exhibits up.

Tom Zschach, SWIFT

Supporters argue blockchain messaging might improve settlement effectivity, programmability, and transparency. However, hurdles stay. Banks face steep integration prices, operational dangers, and regulatory scrutiny round token issuance and transaction knowledge. One important impediment is authorized certainty.

Settlement is a authorized assemble, not a technical one. We must align a blockchain’s affirmation mannequin with authorized finality. Without that alignment, scaling shall be tough.

Tom Zschach, SWIFT

The remark highlights why requirements, rulebooks, and jurisdictional readability are important for recognizing on-chain settlement in courtroom.

While full adoption is unsure, the pilot alerts SWIFT’s intent to align its infrastructure with rising digital asset markets. The consequence might decide whether or not blockchain turns into embedded in international interbank communication.

The submit SWIFT Taps Linea for Blockchain Messaging Pilot appeared first on BeInCrypto.

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