SWIFT Blockchain Settlement: Linea Confirmed as Platform

Background: SWIFT Chooses Linea for Blockchain Payment Settlement

SWIFT, the Society for Worldwide Interbank Financial Telecommunication, has selected Linea, an Ethereum layer 2 network developed by Consensys, to build its recently announced blockchain payment settlement system. The confirmation came from Consensys CEO Joe Lubin during a fireside chat at the Token2049 conference in Singapore, as reported by Cointelegraph.

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Earlier in the week, SWIFT announced plans to work with Consensys and over 30 traditional financial institutions to develop infrastructure for a 24/7 real-time cryptocurrency payments platform. At the time, SWIFT did not confirm its choice of blockchain, though speculation centered on Linea. Lubin confirmed the selection, explaining the announcement was initially “soft rolled out” to the banking sector, and said, “It’s about time to bring the two streams, DeFi and TradFi, together.”

Linea’s Capabilities and Market Reaction

Linea, built by Consensys, utilizes zk-EVM rollup technology—allowing for cheaper and more efficient transactions compared to Ethereum mainnet. Current data from L2BEAT shows Linea has about $2.27 billion in total value locked, ranking it fourth among Ethereum layer 2 networks. SWIFT’s entry into blockchain payments is notable, given its role in processing approximately $150 trillion in global payments yearly.

Major banks including Bank of America, Citi, JPMorgan Chase, and Toronto-Dominion Bank are participating in early trials of SWIFT’s blockchain payment rail on Linea. SWIFT’s initiative has the potential to enhance real-time, 24/7 payment settlement, while reducing the need for intermediaries and lowering transaction costs and errors. Lubin also discussed the broader vision for Linea, suggesting it could support “user-generated civilization and user-generated content.” He explained that Linea enables communities to build infrastructure, rules, and apps transparently, in contrast to traditional top-down systems.

What’s Next for Blockchain Payments and Traditional Finance?

By embracing Ethereum’s layer 2 scalability and settlement features, SWIFT positions itself as a significant competitor to blockchain-based payment rails such as Ripple’s XRP Ledger. The move reflects wider industry trends, as decentralized autonomous organizations (DAOs) attempt to manage treasury and governance using blockchain technology, though mass-scale success remains limited.

As SWIFT and leading global banks test the new Linea-powered payments rail, the financial industry will closely watch for improvements in transaction speed, cost, and transparency. Linea’s trial could mark a pivotal shift as both traditional and decentralized finance infrastructures converge, leveraging blockchain technology to streamline international payments.

For further insights into developments in crypto payments and blockchain technology, see Vizi’s cryptocurrency coverage.