The Society for Worldwide Interbank Financial Telecommunication (SWIFT), the world’s largest interbank messaging network, has announced a major step into blockchain. The organization is piloting stablecoin and on-chain messaging technology on Linea, an Ethereum layer-2 solution built by Consensys. The move positions SWIFT in direct competition with Ripple, which has long promoted blockchain as a faster and cheaper alternative to legacy financial transfers.
A Direct Challenge to Ripple’s Cross-Border Model
SWIFT currently connects more than 11,000 financial institutions globally, providing standardized payment instructions that banks use to settle transactions. While its infrastructure has underpinned international finance for decades, the system is often criticized as slow, expensive, and dependent on multiple intermediaries.
Ripple’s blockchain-powered model, which merges messaging and settlement on-chain, has been marketed as a superior alternative.
Now, SWIFT is fighting back. By piloting blockchain capabilities with major banks including BNP Paribas and BNY Mellon, the organization signals it is unwilling to concede ground in the fast-evolving payments ecosystem. The pilot explores combining payment instructions and settlement into one blockchain transaction, reducing costs and giving all parties real-time visibility of progress.
Linea’s Role: Privacy and Scalability
Linea’s appeal lies in its ability to provide privacy-focused cryptographic proofs while maintaining Ethereum’s scalability. For banks, these features offer a balance of efficiency, compliance, and confidentiality—three areas critical for integrating blockchain into heavily regulated financial systems.
By moving its messaging system partially on-chain, SWIFT could not only streamline operations but also cut reliance on intermediaries. According to Tom Zschach, SWIFT’s Chief Innovation Officer, banks are likely to favor payment rails supported by tokenized deposits or regulated stablecoins, creating a more direct path to settlement.
Stablecoin Ambitions: Blunting Ripple’s Edge
As part of the pilot, SWIFT is studying the creation of an interbank token with stablecoin-like features. If implemented, this could diminish Ripple’s competitive advantage, as it would give traditional banks their own blockchain-native tool for settlement. Ripple, however, is not standing still—it recently unveiled a demo for a payment stablecoin, ensuring the rivalry between the two players continues to intensify.
Despite its potential, the pilot faces hurdles. Integrating blockchain with existing banking infrastructure is notoriously complex, and SWIFT must prove Linea’s security and efficiency at scale. Furthermore, regulatory scrutiny around stablecoins remains high, which could slow adoption.
Still, the experiment underscores a growing trend: traditional finance is warming up to blockchain. By testing on-chain messaging and stablecoin settlement, SWIFT is signaling to banks that it can evolve alongside emerging technologies, rather than be disrupted by them.
If successful, the Linea pilot could mark a turning point for the global payments industry—one where legacy networks and blockchain innovation converge, reshaping how money moves across borders.