SWIFT is piloting an open network to enable instant, low-cost cross-border payments and is exploring on‑chain messaging via Ethereum L2 Linea to reduce last‑mile delays and fees for banks and customers.
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Pilot moves SWIFT toward instant, low-fee cross-border settlement.
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Exploration includes Linea (an Ethereum L2) for faster on‑chain messaging and settlement.
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SWIFT still retains a vast bank network; stablecoins and XRP present competitive pressure.
SWIFT cross-border payments pilot explores Linea on-chain messaging to speed settlement and cut fees — read the update and implications for banks and crypto.
What is SWIFT’s cross-border payment plan?
SWIFT’s cross-border payment plan is to pilot an “open network” that enables instant, transparent payments with no hidden fees while exploring blockchain-based options such as on‑chain messaging via the Ethereum Layer‑2 Linea. The initiative targets last‑mile delays and high retail remittance costs.
How will SWIFT use Linea and stablecoins to speed settlement?
SWIFT has reportedly engaged with Linea, an Ethereum [ETH] Layer‑2, to test on‑chain messaging that can reduce processing time. Stablecoins and on‑chain rails can cut settlement costs to cents versus traditional corridors that take days and higher fees.
Network context: SWIFT processes over 40 million daily messages across ~11,000 partner banks. The organization says up to 80% of delays are due to last‑mile issues; the pilot with 17 banks aims to address those delays and improve customer experience.
Frequently Asked Questions
Can SWIFT instant payments remove all fees?
SWIFT’s open network pilot targets transparent pricing and “no hidden fees” for participating rails, but final fee structures will depend on corridor liquidity, correspondent fees, and local settlement mechanics.
How soon could on‑chain messaging scale across SWIFT?
Insiders indicate the project could take several months to materialize and longer to scale globally due to compliance, liquidity, and integration with legacy bank systems.
Key Takeaways
- Pilot objective: Test an open network to cut delays and hidden fees for cross‑border payments.
- Tech approach: Exploring Linea (Ethereum L2) for on‑chain messaging and stablecoin settlement tests.
- Market impact: Stablecoins and ledger tech increase competition; SWIFT leverages its network reach while adapting.
Conclusion
SWIFT’s pilot to integrate on‑chain messaging via Linea and promote an open network signals a pragmatic shift toward faster, cheaper cross‑border payments. The move balances legacy network reach with emerging rails like stablecoins and Layer‑2 solutions. Watch for pilot metrics and participation growth as indicators for wider adoption.
