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SWIFT Partners with Linea to Build Stablecoin and On-Chain Messaging System

SWIFT, the backbone of global banking communications, is moving closer to blockchain.

The network is now working with Linea, an Ethereum Layer 2 developed by Consensys, to test migrating its payment messaging system on-chain. The project, revealed by The Big Whale, involves more than a dozen of the world’s largest financial institutions, including BNP Paribas and BNY Mellon.

If successful, the trial could mark one of the biggest technological shifts in international banking since SWIFT first launched in 1973.

SWIFT Brings Banking Giants to the Table

SWIFT is not experimenting in isolation. The pilot already includes heavyweight banks such as BNP Paribas and BNY Mellon, with more than a dozen institutions now onboard. Together, they are exploring how SWIFT’s traditional messaging, currently routed through a centralized, secure but slow system, could instead run through a blockchain-based rail.

A source at one of the participating banks told The Big Whale:

“The project will take several months to materialize, but it promises an important technological transformation for the international interbank payments industry.”

The scale is significant. SWIFT currently connects more than 11,000 institutions across 200+ countries, transmitting trillions of dollars in daily instructions. Moving even part of that infrastructure onto a blockchain network would be a seismic shift.

Why Linea?

The choice of Linea is not random. Developed by Consensys, Linea is an Ethereum Layer 2 that emphasizes privacy through advanced cryptographic proofs. For banks, privacy isn’t just a preference, it’s a regulatory necessity. Payment data must remain secure, even while the underlying technology evolves toward decentralization.

Linea’s design offers scalability, low transaction fees, and confidentiality features that allow sensitive data to remain protected while benefiting from blockchain efficiency. For SWIFT and its banking partners, this combination hits the sweet spot between innovation and compliance.

On CoinMarketCap, Linea itself is not tracked as a standalone token but powers decentralized applications within the Ethereum ecosystem. Its connection to Consensys, the company behind MetaMask and major Ethereum infrastructure tools, further boosts its credibility.

SWIFT’s Current Limitations

To understand the significance of this test, it’s worth revisiting what SWIFT is today. The network is essentially a secure messaging system. When one bank wants to send money to another, SWIFT transmits the instructions. But the actual funds move through a chain of intermediaries, often taking days to settle.

That process is slow, costly, and fragmented. Each message can touch multiple banks and clearing houses, creating room for errors and delays. Despite upgrades over the years, SWIFT’s system remains centralized and heavily reliant on third parties.

This is exactly where blockchain technology could offer a breakthrough.

Blockchain as a Game-Changer

By moving to Linea, SWIFT aims to reduce intermediaries, streamline settlement, and enhance transparency. Transactions executed on-chain can be verified instantly by all participants, cutting down the reconciliation steps that currently bog down the system.

The test is not just about speed. It’s also about programmability. Smart contracts on Ethereum Layer 2s like Linea allow for automated processes, compliance checks, settlement triggers, and even liquidity management. For global banks, this could mean reduced operational costs and improved efficiency.

If SWIFT embraces this at scale, it could redefine how trillions in daily financial flows are managed.

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Stablecoin Experiment in Focus

Another dimension of the pilot is stablecoins. SWIFT and Linea are not only exploring messaging but also the potential use of blockchain-based stablecoins as settlement assets.

The logic is clear: stablecoins backed by fiat reserves offer near-instant settlement across borders, avoiding the need for complex correspondent banking networks. With regulated banks involved, the tokens could be designed to meet strict compliance standards, avoiding many of the issues that unregulated stablecoins face today.

This aligns with a broader trend. The stablecoin market has exploded in recent years, crossing $160 billion in circulating supply (CoinMarketCap, September 2025). Institutions from PayPal to JPMorgan are testing or already running stablecoin-like settlement tokens. For SWIFT, the move would be a natural extension of its role in bridging global payments.

Privacy at the Core

One of the most pressing questions in moving financial messaging to blockchain is privacy. Banks cannot risk exposing sensitive payment data on a public ledger. That’s where Linea’s advanced cryptographic techniques come in.

By using zero-knowledge proofs, Linea allows transaction verification without revealing underlying data. This ensures that compliance and regulatory requirements are met, while the benefits of decentralization, speed, transparency, security, remain intact.

For global banks, this balance is non-negotiable. It may also explain why Linea, rather than more public-facing blockchains, was selected for the pilot.

A Long Road Ahead For SWIFT

The project is still in development and expected to take several months before meaningful results emerge. For now, it remains a testbed. But the involvement of major institutions and SWIFT itself shows that this is no ordinary experiment.

If successful, it could pave the way for a hybrid financial infrastructure, part traditional, part blockchain, that reshapes the very backbone of global payments.

Crypto watchers are already paying attention. Gregory Raymond, co-founder of The Big Whale, highlighted the collaboration on X (formerly Twitter), drawing industry interest.

For the blockchain community, the news is validation. For global banks, it’s a cautious but necessary step into a digital future.

The implications stretch far beyond SWIFT. If the pilot proves viable, it could signal a broader adoption of blockchain in traditional finance. Settlement layers, stablecoins, and on-chain compliance tools could become standard for interbank operations.

It also places Consensys and Linea in a pivotal role. As Ethereum continues to dominate institutional blockchain adoption, projects like this cement its position as the default infrastructure for real-world financial use cases.

SWIFT’s collaboration with Linea represents more than a test. It’s a recognition that the future of global payments may lie in blockchain technology. By bringing together global banks, stablecoins, and advanced cryptography, the project hints at a future where payments are faster, cheaper, and more secure, without losing the compliance backbone regulators demand.

The road is long, but the direction is clear. SWIFT is preparing to evolve, and Linea could be the network that carries it into the next era of finance.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Will Izuchukwu

Will is a News/Content Writer and SEO Expert with years of active experience. He has a good history of writing credible articles and trending topics ranging from News Articles to Constructive Writings all around the Cryptocurrency and Blockchain Industry.

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