Swift has chosen Consensys-developed Linea to pilot its transition from conventional interbank messaging to blockchain-based communications, in response to a Sept. 26 report by The Large Whale.
A supply accustomed to the matter mentioned the worldwide banking consortium chosen the Ethereum layer-2 community after months of negotiations to check how interbank on-chain messaging can substitute its present centralized infrastructure.
Greater than a dozen banks will take part within the trial, together with BNP Paribas and BNY Mellon, with the pilot analyzing each messaging transitions and the combination of stablecoins.
A supply at one of many taking part banks informed the report:
“The undertaking will take a number of months to see the sunshine of day, nevertheless it guarantees a serious technological transformation for the worldwide interbank funds trade.”
Linea’s native token value jumped 10.6% from $0.02544 to $0.02814 inside one hour of the announcement. As of press time, LINEA traded at $0.02806.
The choice marks Swift’s entry into blockchain expertise, following its announcement of a digital asset initiative in September 2024.
The announcement cited plans to check multi-ledger Supply-versus-Cost and Cost-versus-Cost transactions, concentrating on the tokenized asset market, which is anticipated to succeed in $30 trillion by 2034.
Community choice rationale
The supply mentioned Swift selected Linea particularly for its transaction confidentiality options, which make the most of superior cryptographic proofs.
The banking consortium required blockchain options that keep information safety and regulatory compliance, whereas providing larger pace, transparency, and programmability than conventional fee processing strategies.
Developed by Consensys, Linea focuses on privacy-preserving transactions by means of zero-knowledge proofs, addressing banks’ must reconcile the advantages of blockchain with present regulatory frameworks.
The community’s connection to Ethereum supplies established infrastructure whereas layer-2 expertise reduces transaction prices.
Swift connects over 11,000 monetary establishments globally by means of its messaging system, processing billions of fee directions yearly.
A number of experiments
The present structure depends on a number of relays and centralized infrastructure, creating operational dependencies that blockchain expertise might streamline.
Swift has progressed by means of a number of blockchain experiments since asserting its digital asset technique.
The group launched dwell digital asset trials throughout North America, Europe, and Asia in October 2024 and accomplished a tokenized fund settlement pilot with UBS Asset Administration and Chainlink in November of the identical yr.
The Linea pilot builds on Swift’s broader blockchain integration efforts, which embody participation within the Financial institution for Worldwide Settlements’ Undertaking Agora and collaboration with central financial institution digital forex initiatives.