Swift Tests Ethereum Layer 2 Migration With BNP Paribas, BNY
Payments Network Explores Blockchain Integration
Swift, the global financial messaging service, is testing an onchain migration of its system using Ethereum Layer 2 Linea, according to a report by The Big Whale. The project involves more than a dozen financial institutions, including BNP Paribas and BNY, the report said.
The initiative, still under development, is expected to take several months. “The project will take several months to materialize, but it promises an important technological transformation for the international interbank payments industry,” an unnamed source was quoted as saying.
Swift’s network connects more than 11,500 institutions worldwide. The move marks its latest foray into blockchain following earlier tests on tokenized asset transfers across public and private blockchains.
Investor Takeaway
Background on Swift’s Blockchain Pilots
Swift has previously run blockchain trials. In August 2023, it released results from a series of experiments on transferring tokenized value across multiple blockchains. At the time, Swift said the findings could “remove significant friction slowing the growth of tokenised asset markets and enable them to scale globally as they mature.”
Last year, the network confirmed that banks would conduct live tests of digital asset and currency transactions over Swift’s rails during 2025. The current Linea pilot appears to be a continuation of these efforts to integrate blockchain infrastructure with traditional finance.
Why Linea Was Chosen
According to The Big Whale, Swift selected Linea because of its emphasis on privacy through advanced cryptographic proofs, a feature considered vital for banks seeking to balance innovation with regulatory requirements. Built by Consensys, Linea is a zkEVM using ZK-rollup technology, compatible with Ethereum applications. It has been live since July 2023.
Consensys declined to comment on Swift’s reported initiative. Linea recently launched its token, LINEA, through a token generation event this month.
Investor Takeaway
Outlook
The Swift project is still in early stages, with no timeline for live deployment. For the global payments industry, however, the involvement of major banks like BNP Paribas and BNY signals that blockchain-based messaging and settlement systems are moving closer to mainstream testing.
If successful, Swift’s onchain migration could influence how interbank communications evolve in coming years, potentially reshaping the infrastructure behind trillions of dollars in daily cross-border transactions.