SWIFT Partners with BNY Global and BNP Paribas to Pilot Blockchain-Based Messaging System Using Linea

• SWIFT is testing its messaging system on Linea to explore the use of blockchain in global banking.
• The project involves major banks and focuses on privacy and regulatory compliance.
• Blockchain may help SWIFT reduce costs and speed up cross-border payments.

SWIFT has started testing its core messaging system on a blockchain network. The move includes major institutions like BNY Mellon and BNP Paribas. The experiment involves shifting SWIFT’s messaging framework onto Linea, a layer-2 blockchain developed by ConsenSys. The project marks an early step toward integrating blockchain in global banking operations.

The initiative began with over a dozen financial institutions participating. A participating bank source described the test as a multi-month pilot. The project focuses on placing SWIFT’s central system on-chain. It forms part of SWIFT’s preparation for future digital asset transaction trials expected in 2025.

Privacy and Compliance Drive Linea Selection

SWIFT selected Linea due to its focus on privacy and compliance. Linea uses cryptographic proofs to secure transaction data. This aligns with the strict regulatory demands banks face globally. Blockchain adoption at this level requires security that meets traditional financial standards.

The decision reflects SWIFT’s cautious but steady approach to innovation. Previously, SWIFT tested tokenized asset transfers on both public and private blockchains. Those tests showed that SWIFT’s system could serve as a universal connector. It proved possible to link different digital ledgers without major system overhauls.

Shift Toward Faster and Cheaper Settlements

This pilot builds upon earlier research and advances into practical development. Migrating SWIFT’s messaging core onto blockchain may reduce reliance on intermediaries. It could also improve settlement speeds and lower transaction costs.

SWIFT now links more than 11,000 financial institutions. Nevertheless, it is being criticized for being slow, expensive, and having centralized controls. Blockchain integration may address these concerns. The new system aims to improve efficiency across borders. Financial players are watching closely for outcomes that might reshape global payment infrastructure.

Institutional Momentum Meets Technical Challenges

BNP Paribas and BNY Mellon’s involvement shows institutional support for blockchain testing. In May, BNP Paribas launched a tokenized money market fund using blockchain to boost speed, efficiency, and retail investor access. The pilot does not yet affect live transactions. But it signals a shift in attitude toward digital transformation. Institutions see potential in merging communication and settlement systems.

In spite of this development, there are still challenges. Adoption of blockchain in existing systems is time-consuming. It also requires regulatory cooperation across multiple regions. Questions about system scalability and legal acceptance still exist.

SWIFT’s history of gradual innovation continues. Earlier this year, Swift’s Project CALM used AI and blockchain to streamline corporate actions, reducing manual processes and improving data accuracy. From API upgrades to AI fraud detection, the network tests before scaling. The Linea pilot follows the same strategy. If successful, it could become one of the largest blockchain rollouts in global finance.