Swift Partners with Linea to Build Blockchain Payment Network on Ethereum Layer 2

Swift Confirms Collaboration with Linea on Blockchain Integration

Swift, the global leader in interbank payment and messaging systems, has unveiled plans to establish a next-generation blockchain payment ledger using Linea, an Ethereum Layer 2 solution. This strategic decision was officially disclosed by Joe Lubin, CEO of ConsenSys, during the Token2049 conference in Singapore.

Earlier this week, Swift announced a collaborative effort with ConsenSys and over 30 prominent financial institutions to create a real-time, 24/7 global payment system powered by blockchain technology. While the network had not previously disclosed the blockchain it would adopt, Lubin’s revelation signals a pivotal moment for the convergence of decentralized finance (DeFi) with traditional financial institutions (TradFi).

What Is Linea? The Ethereum Layer 2 Solution Revolutionizing Blockchain Scalability

Developed by ConsenSys, Linea is an advanced Ethereum Layer 2 scalability solution powered by zkEVM (zero-knowledge Ethereum Virtual Machine) roll-up technology. It enhances Ethereum transaction throughput, operating at approximately 1.5 transactions per second while drastically lowering fees to a fraction of the mainnet costs—about one-fifteenth of the associated gas fees.

According to data from L2BEAT, Linea holds the position of the fourth-largest Ethereum Layer 2 network. It reports an impressive $2.27 billion in Total Value Locked (TVL), ranking behind Arbitrum One, Base, and Optimism Mainnet in size and adoption. This robust architecture makes Linea an ideal platform for building scalable, efficient blockchain payment systems.

Leading Global Banks Join Swift’s Blockchain Pilot

Swift’s pilot project is set to involve some of the world’s most influential banking institutions, including Bank of America, Citi, JPMorgan Chase, and Toronto-Dominion Bank (TD). This marks a direct challenge to Ripple's XRP Ledger, a blockchain-based payment infrastructure widely used within banking systems.

Currently, Swift oversees around $150 trillion in global payments annually through its traditional network infrastructure. By integrating blockchain technology, the organization seeks to revolutionize financial transactions, enabling faster settlements, continuous 24/7 operations, and significantly lower costs—all of which could alter the international financial landscape.

Bridging the Gap: Enabling DeFi and TradFi Integration

Joe Lubin commented on the industry’s excitement surrounding Swift’s move into blockchain innovation. While Swift CEO Javier Pérez-Tasso’s earlier announcement did not specifically mention Linea by name, Lubin highlighted the endeavor as a groundbreaking effort to bridge decentralized and traditional financial systems.

The synergy between DeFi and TradFi has long been a subject of exploration. This bold step by Swift and Linea represents a meaningful attempt to integrate the benefits of blockchain technology—such as transparency, security, and autonomy—into the rigid frameworks of legacy financial institutions.

Exploring Linea Beyond Payment Solutions

Lubin also shared his views on the far-reaching potential of Linea, emphasizing its transformative use cases beyond payment systems. Linea empowers communities with tools to develop decentralized applications and governance models through a “bottom-up” ethos. Unlike traditional hierarchical financial structures, this model fosters collaboration, transparency, and user-driven autonomy.

Linea’s foundation is integral to Decentralized Autonomous Organizations (DAOs), which rely on smart contracts and democratic voting systems to implement changes and policies. While the success of most DAOs has been incremental, Lubin believes the technology holds the key to fostering decentralized self-governance at scale. Linea stands out as a versatile platform supporting these community-driven initiatives, highlighting the potential for broader blockchain adoption in governance, enterprise, and social projects.

Blockchain Payments: Shaping the Future of Financial Technology

Swift's ambitious adoption of blockchain payment solutions signals a fundamental shift in how financial institutions approach global transactions. The move underscores growing interest in blockchain’s ability to deliver intermediary-free instant settlements, continuous availability, and minimal transaction costs.

As banks and financial institutions race to integrate blockchain-enabled systems, competition to dominate the next generation of payment platforms is expected to intensify. This battle for supremacy has the potential to redefine the global financial ecosystem, ushering in unprecedented levels of efficiency, transparency, and innovation.

Swift’s partnership with Linea is a defining step in this journey, setting the standard for blockchain-powered financial networks capable of transforming how the world moves money. As the boundaries between DeFi and TradFi blur, the financial industry stands on the threshold of a disruptive and highly promising future.