SWIFT Tests Ethereum Linea with BNP Paribas and BNY Mellon

SWIFT is testing on-chain messaging with Ethereum’s Linea involving BNP Paribas and BNY Mellon, aiming for technological advancements in international interbank payments over several months.

This pilot could revolutionize cross-border payments, enhancing efficiency and compliance, with potential impacts on Ethereum and related financial systems.

Consortium of Over 12 Banks Engages in Linea Pilot

SWIFT’s initiative involves testing Ethereum’s L2 network Linea with major banks BNP Paribas and BNY Mellon. The pilot includes more than a dozen financial institutions and utilizes Linea’s zk-rollup for better transaction scalability and privacy. ConsenSys, the developer of Linea, and SWIFT are overseeing the introduction of this innovative approach.

Expected to last several months, the pilot’s objective is to modernize messaging in international banking. BNP Paribas and BNY Mellon bring significant potential to this test, while Linea’s technical framework aims at enhancing privacy and scalability.

Industry reactions remain cautious, as no formal statements from bank CEOs or regulatory bodies have been published. The financial sector is keenly watching this development, with institutional adoption possibly bolstering Ethereum’s reputation and the L2 sector.

SWIFT is collaborating with Linea for on-chain payment messaging with over a dozen banks, aiming to modernize cross-border settlement and messaging via zkEVM rollup technology.

Market Data and Insights

Did you know? In past blockchain trials, SWIFT has explored interoperability with global banks, but this test with Linea could set a new precedent in private sector blockchain adoption.

Ethereum (ETH) is currently priced at $3,996.53, with a market cap of $482.39 billion, according to CoinMarketCap. The asset holds a market dominance of 12.81%. Recent data shows a trading volume decrease by 51% and ETH’s 90-day price upsurge by 61.67%.

Insights from Coincu suggest SWIFT’s pilot could potentially reshape global payment structures, emphasizing technological advancements yet under scrutiny of regulatory frameworks. Continued developments could enhance Ethereum’s position as a leader in financial integrations.