Swift chose Linea, developed by Consensys, to pilot the transition from traditional interbank messaging to blockchain-based communications, according to a September 26 report from Big Whale.
According to sources familiar with the issue, the Global Banking Consortium chose the Ethereum Layer 2 network after several months of negotiations to test how bank interbank-on-chain messaging could replace current centralized infrastructure.
More than 12 banks will take part in the exam, including BNP Paribas and BNY melons, and pilots will look at both messaging transitions and stubcoin integration.
One source of participating banks told the report:
“This project will take months to see the light of day, but it promises a major technological change for the international interbank payments industry.”
Linea’s native token price jumped from $0.02544 to $0.02814 within an hour of its announcement, 10.6%. As of press time, Linea was traded for $0.02806.
This choice marks Swift’s entry into blockchain technology following the announcement of its digital asset initiative in September 2024.
The announcement cited plans to test multi-lady delivery-to-payment and payment-to-payment transactions targeting tokenized asset markets, which are expected to reach $30 trillion by 2034.
The basis for network selection
Sources say Swift has specifically chosen Linea for its transactional confidentiality feature that utilizes highly encrypted proofs.
The banking consortium needed a blockchain solution that would maintain data protection and regulatory compliance, while still providing faster, transparency and programmers over traditional payment processing methods.
Developed by Consensys, Linea focuses on transactions that provide privacy through proof of zero knowledge, addressing the need for banks to coordinate the benefits of existing regulatory frameworks and blockchains.
Connecting your network to Ethereum provides an established infrastructure, while Layer 2 technology reduces transaction costs.
Swift connects more than 11,000 financial institutions worldwide through its messaging system and processes billions of dollars in payment instructions per year.
Multiple experiments
Current architectures rely on multiple relays and centralized infrastructures to create operational dependencies that allow blockchain technology to streamline.
Swift has been conducting multiple blockchain experiments since its launch of its digital asset strategy.
The organization began live digital asset trials in North America, Europe and Asia in October 2024, and completed the settlement pilot for a tokenization fund with UBS asset management and chain links in November of the same year.
Linea Pilot is based on Swift’s broader blockchain integration efforts. This includes participating in Bank for International Stletions’ project Agora and collaboration with the central bank’s digital currency initiative.