SWIFT partners with Consensys to develop blockchain on Ethereum platform
SWIFT, a leading financial messaging network that processes over $150 trillion annually, has initiated blockchain settlement trials in collaboration with Consensys and a group of top banks. More than 30 global institutions, including BNP Paribas, BNY Mellon, Bank of America, Citi, Deutsche Bank, JP Morgan, and Wells Fargo, are participating in the experiment. The primary focus is on leveraging Ethereum’s ecosystem, specifically Linea, a Layer-2 scaling solution developed by Consensys, to bring on-chain messaging and payments closer to traditional banking systems.
Linea, constructed as a zkEVM rollup, enables transactions to be executed at reduced costs and faster speeds while maintaining the security features of Ethereum. This partnership between SWIFT, major banks, and Consensys is deemed as a pivotal moment for both traditional finance and decentralized finance, emphasizing the amalgamation of strengths rather than competition between systems.
The move to test Ethereum’s Layer-2 Linea for on-chain settlement marks a significant advancement in Ethereum adoption. SWIFT highlighted the prototype’s potential as a secure and programmable ledger that can record and validate real-time payments. By utilizing smart contracts, the system can automatically enforce rules, thereby minimizing settlement risks and delays.
Ethereum’s selection for this pilot project holds significance, demonstrating a preference for its infrastructure over Ripple’s XRP for cross-border settlements. The surge in enterprise initiatives on Ethereum, as indicated by Consensys data showing a 300% increase since 2022, solidifies Ethereum’s standing in the industry. SWIFT’s emphasis on interoperability, showcased at Sibos 2025, aligns with the trend of central banks exploring digital currency interoperability, positioning Ethereum at the forefront of future financial experiments.
The potential impact of migrating even a fraction of SWIFT’s traffic to Ethereum could be monumental. With the network processing around 53 million financial messages daily, representing about $7.5 trillion, this shift could significantly boost Ethereum’s demand as settlement fuel. Analysts often correlate this factor with long-term Ethereum price predictions, underscoring the broader implications of SWIFT’s Ethereum-based initiative.
As institutional interest in Ethereum continues to grow, some analysts foresee higher price levels in the years ahead, with 2025 price predictions reflecting enhanced institutional engagement. SWIFT’s decision to explore Ethereum-based infrastructure signifies a pivotal shift in the industry’s perception of blockchain technology. This move towards convergence rather than competition indicates a possible future where Ethereum becomes a standard component of international banking operations.
At the time of writing, Ethereum was trading at approximately $4,100, down by 1.34% over the last 24 hours. Consensys encapsulated the significance of this development by stating, “This is convergence, not competition.” If the prototype evolves into a full-fledged system, Ethereum could potentially solidify its position as a key player in international banking operations.
