SWIFT Uses Ethereum L2 Network for Bank Transaction Pilots

SWIFT has initiated a blockchain pilot with BNP Paribas and Bank of New York Mellon, employing Ethereum’s Linea Layer 2 network to test on-chain messaging and settlement systems.

This initiative indicates a shift toward blockchain technology in international banking, impacting how financial institutions conduct global transactions and potentially influencing Ethereum’s utility in traditional finance.

SWIFT Partners with Major Banks for Ethereum Integration

SWIFT’s new blockchain pilot with major banks using the Ethereum Layer 2 network aims to revolutionize interbank transactions. The collaboration with BNP Paribas and BNY Mellon signifies a push towards more efficient banking solutions. Testing involves over a dozen financial institutions and spans several months.

This initiative could transform international payment processes, offering enhanced transaction speed and reduced costs. The use of the Ethereum Layer 2 technology indicates a drive towards integrating blockchain in mainstream financial systems, potentially increasing trust and adoption within the industry.

Industry reactions have been positive, though major crypto figures have not publicly commented. SWIFT’s Chief Innovation Officer, Tom Zschach, emphasized the potential for scalable solutions across digital instruments, highlighting ongoing efforts to upgrade cross-border payment frameworks.

“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.” – SWIFT Linea Pilot Overview

Historical SWIFT Blockchain Trails and Ethereum’s Current Metrics

Did you know? SWIFT has been testing blockchain interoperability since the early 2020s, and recent efforts indicate a major step towards integrating Ethereum L2 technology in traditional banking.

Ethereum (ETH) currently trades at $4,021.17 with a market cap of $485.37 billion. Despite a 2.21% rise in the past 24 hours, its 7-day and 30-day values declined by 9.97% and 12.74%, respectively, according to CoinMarketCap.

Coincu research highlights that regulatory easing in stablecoin management coincides with this pilot, potentially increasing Ethereum’s institutional value. Historical trends in blockchain integration suggest further financial innovation while maintaining compliance with evolving regulations.

In related news, recent analyses suggest that Ethereum’s current metrics could see significant growth if market conditions favorably align in the coming months.