Swift, the Global Financial Messageing Network, works with more than a dozen banks to test messaging on the channel using Linea, the Ethereum Layer-2 platform developed by Consensys.
Institutions such as BNP Paribas and Bny Mellon participate in the initiative, which is also considered as a stablecoin type regulation token.
A source within a bank said that the project could mark “a technological transformation for the international interbank payment industry”, although development took several months before the results become clear.
SWIFT links more than 11,000 financial institutions, transmitting payment instructions but not funds. Its centralized model depends on the intermediaries and inherited rails, which the criticisms support add complexity and delay. The pilot seeks to determine whether the ZK -Rollup architecture of Linea – designed for faster and evolving transactions with privacy -focused cryptography – can rationalize messaging and regulations while meeting regulatory standards.
The initiative follows the wider efforts of the Swift Blockchain. The network has recently announced new rules for retail cross -border payments to increase speed and predictability. World banks plan to try digital asset transactions on their infrastructure from 2025.
Previous pilots have shown the interoperability of the blockchain, UBS and Chainlink helping SWIFT to complete the tokenized asset transfers. The network has also explored the global digital asset transaction executives and considered integration with the XRP book.
Linea, who launched her token this year to support a decentralized financial ecosystem of $ 72 billion, is positioned as an environment ready for the company for banks looking for compliance and scalability.
In a recent round table, Swift managers also discussed the pilot and the broader change in digital assets, and managers stressed that industry was heading for a new phase.
We are beyond the experiences now. The question is how to evolve – without what the instrument is a deposit of tokens, a CBDC, a stablecoin or a tokenized fund. This comes back to what we connect exactly and where the value appears.
Supporters argue that blockchain messaging could improve the efficiency of regulations, programmability and transparency. However, obstacles remain. Banks are faced with high integration costs, operational risks and a regulatory examination around tokens and transaction emission data. A critical obstacle is legal certainty.
