SWIFT’s Strategic Move: Linea to Power Future of Real-Time Crypto Payments
The recently revealed blockchain payment settlement infrastructure from SWIFT, the Society for Worldwide Interbank Financial Telecommunication, would be built on Ethereum layer 2 Linea. Joe Lubin, CEO of Consensys, confirmed this. SWIFT revealed Monday that it has teamed up with Consensys and over 30 TradFi institutions to build the necessary infrastructure for a real-time, round-the-clock cryptocurrency payments system. Though there was a lot of conjecture that it would be Linea, it did not specify which chain it would build upon.
However, during Thursday’s Token2049 conference in Singapore, Lubin confirmed Linea’s selection in a fireside chat with Gareth Jenkinson of Cointelegraph. According to Lubin, Linea was not specifically mentioned by SWIFT CEO Javier Pérez-Tasso when the company made its statement to the banking industry. The significant news was soft-rolled out by SWIFT, according to Lubin, and it was received favorably.
I believe the sentiment was, ‘thank you for doing this.’ It’s about time to bring the two streams, DeFi and TradFi, together,
Lubin
SWIFT’s Game-Changing Blockchain Strategy: Instant Payments Without Intermediaries
Given that the blockchain allows for near-instantaneous, round-the-clock settlement without the need for intermediaries, SWIFT’s decision to construct a blockchain payments rail has long been expected. Reducing expenses, mistakes, and delays is another goal of this strategy. Lubin emphasized Linea‘s wider potential beyond payments, characterizing it as a platform that allows user-generated content creation.
We will have user-generated civilization and user-generated content on Linea and other places,
Lubin
He demonstrates why Linea enables communities to create infrastructure, regulations, and applications from the ground up by utilizing Ethereum’s trustless settlement layer. The top-down strategy used in conventional banking and government structures is the reverse of this.
Major Banks Test SWIFT’s Blockchain Payments: Could Linea Disrupt Finance?
Among the TradFi companies scheduled to take part in the trials of SWIFT‘s new blockchain payments rail on Linea are Bank of America, Citi, JPMorgan Chase, and Toronto-Dominion Bank. Prior to the platform’s wider release, these trials are intended to test and improve it. It might be a significant rival to Ripple’s XRP Ledger, one of the few well-known blockchain-based bank-specific payment systems.
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