SWIFT, the backbone of the international payment infrastructure, has stepped into a blockchain-based transformation project together with global banking giants.
Several banks, including BNP Paribas and BNY Mellon, are testing ways to migrate SWIFT's payment messaging system to the Ethereum-based Layer 2 network Linea (LINEA).
The project, still in its development phase, aims to pave the way for a radical technological transformation in the international interbank payment system. A source familiar with the project said, “The project will take a few months to come to fruition, but it promises a significant technological transformation for the international interbank payment industry.”
The primary reason for testing the project on Linea is that the network prioritizes privacy through advanced cryptographic proofs. Banks see this feature as crucial for developing innovative solutions while also meeting regulatory requirements.
Today, SWIFT operates as a secure messaging service that transmits payment instructions between more than 11,000 financial institutions. However, the current system is frequently criticized for its reliance on multiple intermediaries, centralized structure, and slowness.
*This is not investment advice.
