What happened?
SWIFT has begun testing on-chain payments and messaging on Linea, an Ethereum Layer 2, with more than a dozen global banks including BNP Paribas and BNY Mellon. The pilot explores using a stablecoin-like token for settlement and focuses on on-chain messaging and direct settlement functions. Linea was chosen for its zk-rollup tech that promises low-cost, high-throughput transactions while retaining Ethereum security and enhanced data privacy for compliance.
Who does this affect?
Large banks and their correspondent networks are directly affected as potential users and participants in on-chain settlement. Crypto players — stablecoin issuers, Layer 2 builders, custody providers and payment infrastructure firms — stand to gain new business and scrutiny. Corporates, payment platforms, and end customers could also see faster, cheaper cross-border payments if tokenized settlement scales.
Why does this matter?
If SWIFT moves value onto blockchain rails, it could fast-track mainstream adoption of stablecoins and shift significant transaction volume away from legacy wire and correspondent systems, pressuring banks’ fee revenue. That transition would open markets for custody, tokenization, and Layer 2 services and spark competition among banks, big tech and crypto firms for settlement flows. Markets should watch regulatory reactions and emerging partnerships, since they’ll shape who wins the fees, how liquidity migrates, and how quickly adoption scales.