Banks Equip SWIFT with Ethereum to Compete Against Ripple’s Lead in Payments
- SWIFT launches a blockchain pilot using Ethereum's Linea to test stablecoin payments and streamline cross-border transactions with major banks. - The initiative combines payment instructions and settlement on-chain, aiming to reduce costs and enable real-time tracking while maintaining regulatory compliance. - Linea's zk-rollup technology prioritizes privacy and scalability, positioning SWIFT to challenge Ripple by offering institutional-grade blockchain infrastructure. - Analysts suggest this could rede
SWIFT has launched a pilot project utilizing Ethereum’s Layer 2 solution,
Linea, created by Consensys, was chosen for its sophisticated cryptographic proof mechanisms and zk-rollup architecture, which focus on both privacy and scalability. These capabilities enable banks to handle numerous transactions at once while still meeting regulatory standards, balancing operational efficiency with data security. By adopting Linea’s Ethereum-compatible framework, SWIFT intends to show that blockchain can deliver a secure and economical alternative to traditional systems, without sacrificing the transparency and oversight required by institutions.
This pilot reflects a broader industry trend, as stablecoins are increasingly recognized as practical instruments for international settlements. Stablecoins such as
This development also heightens competition with Ripple, whose XRP Ledger has long promoted itself as a quicker and more affordable solution for cross-border payments. Ripple’s own stablecoin pilot on blockchain highlights the increasing overlap between established finance and decentralized platforms. However, SWIFT’s strategy focuses on giving banks direct control over payment infrastructure, which could reshape the competitive landscape by letting banks manage their own settlement systems.
Experts believe this pilot could transform SWIFT’s position in global finance. If the project proves successful, it could reduce the influence of private payment networks by demonstrating that tokenized deposits and stablecoins can function smoothly on blockchains operated by banks. For investors, the results may determine whether value remains with corporate blockchains like Ripple’s or shifts toward bank-led networks that dominate international liquidity in the future.
The pilot is anticipated to take several months to complete, and its findings may help shape future SWIFT protocols. This partnership builds on previous blockchain interoperability trials, including SWIFT’s collaboration with
: SWIFT Selects
: Global Banking Leader SWIFT Drives Widespread Blockchain Adoption, Fastbull
Source: [1] SWIFT Selects Ethereum Layer-2 Linea for Stablecoin Pilot [2] Global Banking Leader SWIFT Drives Widespread Blockchain Adoption
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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