SWIFT, the global financial messaging network, is working with over a dozen banks to test on-chain messaging using Linea, the Ethereum layer-2 platform developed by ConsenSys. Institutions including BNP Paribas and BNY Mellon are participating in the initiative, which is also considered a stablecoin-like settlement token. SWIFT and Global Banks Begin Linea Blockchain Messaging Trial A source within one bank said the project could mark “a technological transformation for the international interbank payments industry,” though development will take several months before outcomes become clear. SWIFT connects over 11,000 financial institutions, transmitting payment instructions but not funds. Its centralized model depends on intermediaries and legacy rails, which critics argue add complexity and delay. The pilot seeks to determine whether Linea’s zk-rollup architecture—designed for faster, scalable transactions with privacy-focused cryptography—can streamline messaging and settlement while meeting regulatory standards. The initiative follows SWIFT’s broader blockchain efforts. The network recently announced new rules for retail cross-border payments to increase speed and predictability. Global banks plan to trial live digital asset transactions on their infrastructure from 2025. Earlier pilots showed blockchain interoperability, with UBS and Chainlink helping SWIFT complete tokenized asset transfers. The network also explored global digital asset transaction frameworks and considered integration with the XRP Ledger. Linea, which launched its token this year to support a $72 billion decentralized finance ecosystem, positions itself as an enterprise-ready environment for banks seeking compliance and scalability. In a recent panel discussion, SWIFT executives also addressed the pilot and the broader digital asset shift, and executives stressed that the industry is moving into a new phase. We’re beyond experiments now. The question is how to scale—regardless of whether the instrument is a tokenized deposit, a CBDC, a stablecoin, or a tokenized fund. It comes down to what exactly we’re connecting and where the value shows up. Tom Zschach, SWIFT Scaling Blockchain Messaging Faces Legal and Compliance Hurdles Supporters argue blockchain messaging could enhance settlement efficiency, programmability, and transparency. However, hurdles remain. Banks face steep integration costs, operational risks, and regulatory scrutiny around token issuance and transaction data. One critical obstacle is legal certainty. Settlement is a legal construct, not a technical one. We need to align a blockchain’s confirmation model with legal finality. Without that alignment, scaling will be difficult. Tom Zschach, SWIFT The comment highlights why standards, rulebooks, and jurisdictional clarity are essential for recognizing on-chain settlement in court. While full adoption is uncertain, the pilot signals SWIFT’s intent to align its infrastructure with emerging digital asset markets. The outcome could determine whether blockchain becomes embedded in global interbank communication.SWIFT, the global financial messaging network, is working with over a dozen banks to test on-chain messaging using Linea, the Ethereum layer-2 platform developed by ConsenSys. Institutions including BNP Paribas and BNY Mellon are participating in the initiative, which is also considered a stablecoin-like settlement token. SWIFT and Global Banks Begin Linea Blockchain Messaging Trial A source within one bank said the project could mark “a technological transformation for the international interbank payments industry,” though development will take several months before outcomes become clear. SWIFT connects over 11,000 financial institutions, transmitting payment instructions but not funds. Its centralized model depends on intermediaries and legacy rails, which critics argue add complexity and delay. The pilot seeks to determine whether Linea’s zk-rollup architecture—designed for faster, scalable transactions with privacy-focused cryptography—can streamline messaging and settlement while meeting regulatory standards. The initiative follows SWIFT’s broader blockchain efforts. The network recently announced new rules for retail cross-border payments to increase speed and predictability. Global banks plan to trial live digital asset transactions on their infrastructure from 2025. Earlier pilots showed blockchain interoperability, with UBS and Chainlink helping SWIFT complete tokenized asset transfers. The network also explored global digital asset transaction frameworks and considered integration with the XRP Ledger. Linea, which launched its token this year to support a $72 billion decentralized finance ecosystem, positions itself as an enterprise-ready environment for banks seeking compliance and scalability. In a recent panel discussion, SWIFT executives also addressed the pilot and the broader digital asset shift, and executives stressed that the industry is moving into a new phase. We’re beyond experiments now. The question is how to scale—regardless of whether the instrument is a tokenized deposit, a CBDC, a stablecoin, or a tokenized fund. It comes down to what exactly we’re connecting and where the value shows up. Tom Zschach, SWIFT Scaling Blockchain Messaging Faces Legal and Compliance Hurdles Supporters argue blockchain messaging could enhance settlement efficiency, programmability, and transparency. However, hurdles remain. Banks face steep integration costs, operational risks, and regulatory scrutiny around token issuance and transaction data. One critical obstacle is legal certainty. Settlement is a legal construct, not a technical one. We need to align a blockchain’s confirmation model with legal finality. Without that alignment, scaling will be difficult. Tom Zschach, SWIFT The comment highlights why standards, rulebooks, and jurisdictional clarity are essential for recognizing on-chain settlement in court. While full adoption is uncertain, the pilot signals SWIFT’s intent to align its infrastructure with emerging digital asset markets. The outcome could determine whether blockchain becomes embedded in global interbank communication.