Swift advances its use of the blockchain by selecting Linea, a Layer-2 developed by Consensys, for a pilot project that will test the movement of its messaging system in a blockchain environment and will explore the use of a stablecoin. More than a dozen large banks, including BNP Paribas and Bny Mellon, participate in the test to explore how blockchain could improve interbank communication.
In short
- Swift tests Blockchain technology with Linea to explore how its messaging system could work in a blockchain -based system.
- Confidentiality and regulatory compliance are at the heart of the initiative, by taking advantage of Linea's cryptographic protection.
Linea chosen for confidentiality and security
On Friday, The Big Whale reported that the project should take several months to materialize. Quoting one of the participating banks, the report indicated that the initiative “Promises a major technological transformation for the international interbank payment industry. »»
Explaining the reason for the choice of Linea, Grégory Raymond, co -founder of The Big Whale, declared on X that the network favors confidentiality thanks to advanced cryptographic evidence, designed to allow banks to innovate while remaining completely compliant. This focus on confidentiality and conformity is the basis of the wider blockchain initiatives of Swift.
With this in mind, Swift tests the blockchain as a means of make payments fasterincrease transparency and allow more automated treatment, while maintaining strict regulatory monitoring. These steps demonstrate how the network addresses innovation with caution, balancing efficiency and compliance in its interbank operations.
Based on these initiatives, Swift has previously explored the blockchain And said the banks will start tests live from digital instruments and transactions on its network this year. The organization, which connects 11,000 banks worldwide, also develops an interbank token, according to The Big Whale.
Swift faces challenges in the middle of growing competition in the blockchain
While the project is still several months before entering service, The Big Whale highlighted some key challenges that the project will have to meet:
- Integrate the Blockchain system with the existing banking infrastructure.
- Respect regulatory requirements in different jurisdictions.
- Ensure that confidentiality protections are solid and reliable
At the same time, competition in international payments is intensifying. Ripple has promoted its blockchain network as a faster and less costly alternative to the traditional Swift system and recently presented a stablecoin prototype allowing companies to make global transactions and exchange digital assets for local currencies. These developments show how the two networks are turning to blockchain to adapt to evolving payment needs.
In addition, following this news, the Linea token, Linea, increased by more than 14 % in 24 hours. This increase coincides with increasing attention to the Swift Blockchain driver and the wider adoption of blockchain solutions in the bank.
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