Swift has chosen Consensys-developed Linea to pilot its transition from conventional interbank messaging to blockchain-based communications, based on a Sept. 26 report by The Huge Whale.
A supply conversant in the matter stated the worldwide banking consortium chosen the Ethereum layer-2 community after months of negotiations to check how interbank on-chain messaging can exchange its present centralized infrastructure.
Greater than a dozen banks will take part within the trial, together with BNP Paribas and BNY Mellon, with the pilot inspecting each messaging transitions and the combination of stablecoins.
A supply at one of many collaborating banks informed the report:
“The mission will take a number of months to see the sunshine of day, nevertheless it guarantees a significant technological transformation for the worldwide interbank funds business.”
Linea’s native token worth jumped 10.6% from $0.02544 to $0.02814 inside one hour of the announcement. As of press time, LINEA traded at $0.02806.
The choice marks Swift’s entry into blockchain know-how, following its announcement of a digital asset initiative in September 2024.
The announcement cited plans to check multi-ledger Supply-versus-Fee and Fee-versus-Fee transactions, concentrating on the tokenized asset market, which is anticipated to succeed in $30 trillion by 2034.
Community choice rationale
The supply stated Swift selected Linea particularly for its transaction confidentiality options, which make the most of superior cryptographic proofs.
The banking consortium required blockchain options that keep knowledge safety and regulatory compliance, whereas providing higher pace, transparency, and programmability than conventional fee processing strategies.
Developed by Consensys, Linea focuses on privacy-preserving transactions via zero-knowledge proofs, addressing banks’ have to reconcile the advantages of blockchain with present regulatory frameworks.
The community’s connection to Ethereum offers established infrastructure whereas layer-2 know-how reduces transaction prices.
Swift connects over 11,000 monetary establishments globally via its messaging system, processing billions of fee directions yearly.
A number of experiments
The present structure depends on a number of relays and centralized infrastructure, creating operational dependencies that blockchain know-how may streamline.
Swift has progressed via a number of blockchain experiments since asserting its digital asset technique.
The group launched stay digital asset trials throughout North America, Europe, and Asia in October 2024 and accomplished a tokenized fund settlement pilot with UBS Asset Administration and Chainlink in November of the identical 12 months.
The Linea pilot builds on Swift’s broader blockchain integration efforts, which embody participation within the Financial institution for Worldwide Settlements’ Venture Agora and collaboration with central financial institution digital forex initiatives.
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