SWIFT's Blockchain Shift: From Messaging to On-Chain Value Transfer

SWIFT, the global financial messaging network, is collaborating with major institutions including BNP Paribas and BNY Mellon to test on-chain messaging and settlement using Ethereum’s Layer 2 solution, Lineatitle1^[1]. The initiative, still in development, aims to leverage blockchain technology to streamline cross-border payments, reduce reliance on intermediaries, and enhance operational efficiencytitle2^[2]. Over a dozen financial institutions are participating in the project, which could take several months to materializetitle3^[3]. An unnamed source described the effort as a “technological transformation” for the international interbank payments industrytitle4^[4].

The project builds on SWIFT’s prior blockchain experiments, including trials of tokenized asset transfers across public and private blockchains in August 2023title5^[5]. These earlier tests demonstrated potential to reduce friction in tokenized asset markets, enabling them to scale as they maturetitle6^[6]. The current Linea pilot represents a continuation of SWIFT’s strategy to integrate blockchain into traditional finance, following collaborations with entities like Chainlink for cross-chain communication solutionstitle7^[7].

Linea, developed by Consensys, was selected for its zk-rollup technology, which offers low-cost, high-throughput transactions while maintaining Ethereum’s securitytitle8^[8]. The platform’s emphasis on privacy through advanced cryptographic proofs aligns with banks’ regulatory compliance needstitle9^[9]. Linea’s compatibility with Ethereum applications and its operational launch in July 2023 further solidify its appealtitle10^[10]. The pilot seeks to combine payment instructions and settlement into a single on-chain transaction, enabling real-time tracking and reducing costs compared to SWIFT’s traditional messaging-only modeltitle11^[11].

The initiative also explores the development of a stablecoin-like settlement token, potentially transforming SWIFT from a messaging service into a direct value-transfer platformtitle12^[12]. While stablecoins remain under review, their adoption could compete with existing blockchain payment networks like Rippletitle13^[13]. Market reactions to the collaboration have been positive, with Linea’s native token, LINEA, surging 15% in a few hours following the report.

Challenges remain, including legal alignment between blockchain confirmations and traditional legal finality models. SWIFT’s chief innovation officer, Tom Zschach, emphasized the need for jurisdictional clarity to ensure on-chain settlements are recognized in court. Despite these hurdles, the pilot underscores SWIFT’s intent to adapt to evolving digital asset markets, with potential implications for the broader tokenized economy, which is projected to reach $16 trillion by 2030.

The pilot aligns with broader trends in financial infrastructure, including the rise of stablecoins and institutional interest in tokenized assets. Stablecoin markets now exceed $230 billion, driven by speed and cost advantages over traditional systems. As regulatory frameworks evolve—such as the U.S. passing its first federal stablecoin law in July 2025—banks are exploring their own tokens. SWIFT’s involvement signals a shift toward hybrid systems where blockchain and legacy rails coexist, potentially reshaping global payment flows.