SWIFT Launches Blockchain Pilot with Linea, Competing Directly with Ripple
- SWIFT has selected the Ethereum layer 2 platform Linea to pilot blockchain-based transactions.
- The trial involves major banks including BNP Paribas and BNY Mellon.
- SWIFT is also planning to launch a stablecoin, aiming to challenge Ripple’s cross-border payment model.
- Currently, SWIFT connects over 11,000 financial institutions globally and is exploring an interbank token for enhanced settlement options.
- The pilot aims to streamline payment instructions and settlements into a single on-chain transaction, enhancing efficiency.
This initiative reflects SWIFT’s response to the growing adoption of blockchain technology in banking, as it seeks to modernize its services amid competition from Ripple’s established network.
The pilot’s success could reshape traditional banking operations by reducing costs and improving transaction transparency, as seen in its integration of real-time monitoring features. (Source)
