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Banks Equip SWIFT with Ethereum to Compete Against Ripple’s Lead in Payments

Banks Equip SWIFT with Ethereum to Compete Against Ripple’s Lead in Payments

Bitget-RWA2025/09/27 13:26
By:Coin World

- 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

Banks Equip SWIFT with Ethereum to Compete Against Ripple’s Lead in Payments image 0

SWIFT has launched a pilot project utilizing Ethereum’s Layer 2 solution,

, to test blockchain-driven messaging and stablecoin transactions, representing a major move to bring decentralized technologies into mainstream banking. The project, which includes leading financial institutions like BNP Paribas and BNY Mellon, is designed to simplify international payments by merging payment instructions and settlements into a unified on-chain workflow. This could lower costs and provide instant transaction tracking. With this step, SWIFT aims to tackle persistent inefficiencies in the global payments system and keep pace with the rising use of blockchain in finance.

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

and now process more than $1 trillion in transactions each month, offering faster speeds and lower costs compared to conventional payment networks. SWIFT’s investigation into stablecoin integration is in line with this shift, aiming to cut out intermediaries and simplify processes that currently depend on several outdated systems.

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

to develop cross-chain communication tools. By upgrading its messaging platform to support blockchain-native elements such as wallet addresses and smart contract oracles, SWIFT is positioning itself as a leader in the evolution toward programmable finance.

: SWIFT Selects

Layer-2 Linea for Stablecoin , Benzinga

: 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

0

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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