According to industry reports, the organization has begun experimenting with onchain messaging and is exploring the design of a settlement token for interbank use.

For decades, SWIFT has functioned as the communication layer for banks, transmitting instructions but leaving the actual movement of money to separate systems. Its latest pilot reimagines that role, looking at how blockchain can merge messaging and settlement into a single framework. This shift could shorten transaction times, reduce reliance on intermediaries, and align with growing demand for tokenized finance.

Why Linea Was Chosen

At the center of the trial is Linea, a Layer 2 blockchain built on Ethereum. Unlike Ethereum’s main chain, which can be slow and expensive during times of heavy use, Linea employs zk-rollup technology to compress transactions and settle them more efficiently. That makes it attractive for high-volume banking activity, where scalability and low cost are critical.

Linea also runs its own ecosystem token and supports rewards for stakers who bring Ethereum liquidity onto the network. For SWIFT, working with a platform like Linea offers a balance: compatibility with Ethereum’s vast infrastructure while tapping into a faster, more streamlined environment.

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Expanding Beyond Payments

What makes this initiative more than just another blockchain experiment is the focus on enriched messaging. Traditional blockchain transfers are usually limited to moving tokens from one address to another. SWIFT is testing whether additional instructions — compliance data, settlement conditions, even regulatory checks — can be embedded directly into onchain activity.

If successful, this would allow banks to carry not only value but also the contextual information needed to finalize and audit transactions. It’s a vision of blockchain as a comprehensive financial language, not just a payment rail.

Building Toward an Interbank Token

Alongside onchain messaging, SWIFT is exploring the concept of a dedicated interbank settlement token. This would serve as a digital bridge asset, allowing institutions to clear transactions directly across distributed ledgers without waiting on external reconciliation.

Such a token wouldn’t replace fiat but would act as a trusted digital representation for rapid, final settlement between banks. Analysts suggest that if deployed widely, it could reduce friction in cross-border payments — one of the core challenges SWIFT has been tasked with solving for decades.

Looking Ahead

SWIFT’s decision to test these features with Linea highlights a growing convergence between legacy finance and Ethereum-based innovation. While the pilot is still in early stages, it reflects a recognition that future banking systems may require seamless interaction with blockchain infrastructure.

For the crypto industry, the takeaway is clear: the very backbone of global banking is no longer ignoring distributed ledgers but actively working to adapt them into its framework. That could mean a future where trillions in daily transfers run partly on Ethereum-compatible rails, supported by purpose-built settlement tokens and enriched onchain messaging standards.

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