SWIFT has selected Linea, an Ethereum layer-2 network developed by ConsenSys, for a crucial pilot project marking its transition from traditional interbank messaging to communications based on blockchain technology.
This is revealed in a report from 26 September by The Big Whale.
According to a source close to the matter, the global banking consortium has opted for the Layer-2 network after months of negotiations, with the aim of testing how on-chain messaging can replace the current centralised infrastructure used for interbank exchanges.
More than a dozen banks, including giants such as BNP Paribas and BNY Mellon, will take part in the project. The pilot will focus on both the messaging transition and the integration of stablecoins.
A source inside one of the participating banks commented on the report, emphasising the importance of this pilot.
The project will take several months to see the light of day, but promises a major technological transformation for the international interbank payments industry.
The announcement had an immediate impact on the market: the price of Linea's native token jumped 10.6%, from $0.02544 to $0.02814 within an hour of the news. At press time, LINEA was trading at $0.02806.
The selection of Linea constitutes SWIFT's true entry into blockchain technology, in line with the digital asset initiative announced in September 2024.
This initiative included tests on multi-register Delivery-versus-Payment (DvP) and Payment-versus-Payment (PvP) transactions, with the goal of attacking the tokenized asset market, an industry expected to reach $30 trillion by 2034.
The Logic Behind Line's Choice
The source specified that SWIFT chose Line in particular for its advanced transaction privacy features, made possible by the use of sophisticated cryptographic evidence. The banking consortium demanded blockchain solutions capable of maintaining data protection and regulatory compliance, while offering greater speed, transparency and programmability than traditional payment processing methods.
Developed by ConsenSys, Linea is focused on ensuring privacy through zero-knowledge proofs, thus addressing banks' need to reconcile the benefits of blockchain with existing regulatory frameworks.
His connection with Ethereum ensures a consolidated infrastructure, while the layer-2 technology helps to reduce transaction costs.
SWIFT, which currently connects over 11,000 financial institutions globally via its messaging system, handles billions of payment instructions each year.
The current architecture relies on multiple relays and centralised infrastructures, creating operational dependencies that blockchain technology could significantly simplify.
The pilot on Linea is part of a broader series of trials conducted by SWIFT: the organisation launched trials on digital assets in North America, Europe and Asia in October 2024 and completed a pilot on tokenized fund settlement with UBS Asset Management and Chainlink in November of the same year, demonstrating an ongoing commitment to the integration of decentralised finance.
