SWIFT launches blockchain payment experiment…partners with Ethereum layer-2 'Linea'

The international financial messaging network SWIFT appears to be experimenting with the possibility of direct integration with blockchain.

On the 27th (local time), according to the crypto-focused outlet Coindoo, SWIFT is testing on-chain messaging technology that connects to distributed ledgers and is also exploring issuing a dedicated token for interbank payments. SWIFT is envisioning a method that goes beyond its previous role of only handling interbank remittance instructions to also processing the actual payment. It says this could reduce transaction time and minimize the process of going through intermediaries.

This pilot is being conducted with Linea, an Ethereum-based layer-2 blockchain. Linea uses zero-knowledge rollup (zk-rollup) technology to compress and process transactions, enabling scalability and cost reduction. It was chosen because it is considered capable of meeting the speed and stability required for large-scale interbank payments.

SWIFT is also experimenting with "enhanced messaging" that can put regulatory compliance data or payment conditions directly on-chain, beyond simple token transfers. The idea is to use blockchain as a new financial language in which not only value transfer but also the context of transactions and audit trails can occur simultaneously.

It is also reviewing an option to issue a bank-specific payment token. Rather than replacing existing fiat currencies, this would serve as a digital bridge asset that supports fast and final settlement across distributed ledgers. The industry expects this could reduce payment delays and costs that have been problems in cross-border remittances.

The outlet said, "SWIFT's experiment with Linea symbolizes the intersection of traditional finance and Ethereum-based innovation," and "a future in which banking systems are tightly integrated with blockchain infrastructure is not far off."