Core Insights - SWIFT and over 30 global banks are collaborating to make cross-border payments instantaneous and to develop a blockchain-based shared digital ledger for modernizing international bank transactions [1][2][5] Group 1: Project Overview - The initiative aims to enable real-time 24/7 cross-border payments, which are expected to reduce costs and processing times that currently take days [2] - The project will focus on interoperability with emerging systems for stablecoins, tokenized bank deposits, and central bank digital currencies (CBDCs) [2][4] Group 2: Market Context - SWIFT's existing network connects over 11,000 banks across more than 200 countries, facilitating trillions of dollars in transactions daily [3] - A report by Citi projects that stablecoins could reach up to $4 trillion in circulation by 2030, with an estimated $100 trillion in annual trade using them [4] Group 3: Technological Features - The shared digital ledger is designed to securely log transactions in real-time, record, sequence, validate transactions, and enforce rules through smart contracts [5] - Major financial institutions involved in the project include JPMorgan, HSBC, Deutsche Bank, MUFG, BNP Paribas, Santander, and OCBC, along with banks from the Middle East and Africa [5]

Core Insights - Gold, once considered an outdated asset, has surged from $1,800 during the Russia-Ukraine conflict to $3,800, indicating a significant shift in the global financial order [1] - China is emerging as a "custodian of foreign sovereign gold," with Southeast Asian countries storing their gold in China, which could reshape international settlement systems [1][3] Group 1: Historical Context - The Bretton Woods system established the dollar's dominance through a fixed gold exchange rate, but the U.S. later abandoned this, leading to the oil-dollar system [3] - The decline of U.S. influence in the Middle East is weakening the oil-dollar system, prompting alternative arrangements [3] Group 2: China's Strategy - China is withdrawing from the U.S.-dominated SWIFT system and promoting its own CIPS (Cross-Border Interbank Payment System), facilitating international transactions in yuan [5] - The IMF ranks the yuan as the third-largest financing and payment currency globally, indicating a shift away from U.S. control [5] Group 3: Future Implications - The dual strategy of gold custody and CIPS development positions China to create a new credit system based on tangible assets, enhancing its global financial influence [7] - The rise in gold prices reflects central banks' increasing purchases in preparation for a new monetary order, suggesting that gold will play a crucial role in future negotiations [7] Group 4: Investment Perspective - Investors should diversify their assets beyond the dollar, considering yuan, gold, and quality assets as viable options [9] - Historical shifts in monetary systems, such as the collapse of Bretton Woods, have led to significant wealth creation, indicating potential opportunities in the current transformation [9]

Market Trends & Investment Opportunities - Options and derivatives are expected to potentially drive Bitcoin to a $10 trillion market capitalization [1] - Solana ETF approvals are anticipated possibly by mid-October [1] Technology & Infrastructure Development - SWIFT is developing a stablecoin-like token and on-chain messaging system with Linea [1] - Circle is planning an on-chain refund protocol for the Arc blockchain [1] Risk Assessment - Crypto treasury companies are facing risks similar to the dotcom bust of the 2000s [1]

SWIFT CBDC. Photo by BeInCrypto SWIFT, the global financial messaging network, is working with over a dozen banks to test on-chain messaging using Linea, the Ethereum layer-2 platform developed by ConsenSys. Institutions including BNP Paribas and BNY Mellon are participating in the initiative, which is also considered a stablecoin-like settlement token. SWIFT and Global Banks Begin Linea Blockchain Messaging Trial A source within one bank said the project could mark “a technological transformation for th ...

Core Insights - SWIFT has initiated testing for on-chain payments and messaging using Ethereum's Layer 2 network Linea, indicating a deeper integration between traditional finance and blockchain technology [1][3] - The project involves over a dozen global banks, including BNP Paribas and BNY Mellon, and is exploring the use of a stablecoin-like token for settlement [1][2] Group 1: SWIFT's Role and Functionality - SWIFT connects over 11,000 financial institutions and processes billions of messages annually, traditionally serving as a secure messaging service for payment instructions [2] - The blockchain pilot aims to redefine international payments by focusing on on-chain messaging and settlement functions, moving beyond just digital cash transfers [3][5] Group 2: Technological Advancements - The experiment seeks to reduce reliance on multiple intermediaries and streamline international settlements, leveraging Linea's zk-rollup technology for low-cost, high-throughput transactions while ensuring data privacy [4][5] - The collaboration with Linea builds on SWIFT's previous blockchain interoperability experiments, including partnerships with Chainlink to test cross-chain communication solutions [6] Group 3: Industry Impact - Industry participants view this initiative as a significant technological advancement for the interbank sector, potentially transforming international payments reliant on outdated infrastructure [5] - The project reinforces Ethereum's central role in financial experimentation, with findings from earlier trials aimed at easing barriers for tokenized asset markets [7]

Core Insights - The discussions around SWIFT integrating Ripple's XRP Ledger for real-time cross-border transactions have intensified, but practical implementation remains uncertain [1][2] - As of September 2025, SWIFT is conducting trials with various blockchain systems, including XRP Ledger, to explore their integration into its payment infrastructure [2][3] - Ripple has seen increased institutional adoption and regulatory clarity in the US, yet SWIFT has not confirmed any formal partnership or commitment to using XRP [3][4] SWIFT's Strategy and Position - SWIFT aims to be a neutral facilitator rather than a disruptor, focusing on interoperability for over 11,000 member institutions without committing to any single digital asset like XRP [5][7] - The organization is testing multiple distributed ledger technologies (DLTs) for cross-border payment solutions, emphasizing a "plug-and-play" approach rather than reliance on a single blockchain [7] Technical Fit of XRP Ledger - XRP Ledger offers a settlement time of 3 to 5 seconds with low fees, aligning with SWIFT's modernization objectives [8] - RippleNet's On-Demand Liquidity (ODL) demonstrates the use of XRP for sourcing cross-border liquidity, addressing gaps in SWIFT's correspondent banking model [8] - XRP Ledger is compatible with ISO 20022 standards, which is crucial as SWIFT mandates migration by November 2025 [8]

Crypto Market Legitimacy & Adoption - The crypto market is becoming increasingly legitimate, with 2025 seen as a pivotal year for mainstream recognition [1][2][3] - Stablecoin adoption is surging, exceeding $300 billion in market cap and representing over 1% of the M1 supply [4][5] - Stablecoin holders are approaching 200 million, indicating rapid adoption, with nearly 100 million new holders added in roughly 9 months of 2024 [7][8] - Major companies like Google are supporting stablecoins, integrating them into AI applications, signaling the convergence of TradFi/Web2 and Web3/DeFi [10][11] Ripple & Cross-Border Payments - Ripple is expanding its stablecoin offerings and network, attracting institutional interest and demand [19] - Thunes, a global payment platform, has partnered with Ripple and expanded into Saudi Arabia to roll out real-time cross-border payments [12][13] - Thunes' network includes 133 countries, 80 currencies, 4 billion bank accounts, 3 billion mobile wallet accounts, and 1.1 billion cards [15] - Swift confirms it will not generate digital assets, positioning its network to support assets like XRP instead of competing [30] Stablecoin Transaction Volume & Future Trends - Stablecoins are experiencing significant monthly transfer volumes, averaging $2 to $3 trillion, with peaks reaching nearly $4 trillion in December [17] - Ripple's XRP could potentially process 14% of Swift's global volume, estimated at $150 trillion annually, translating to $21 trillion yearly volume flowing through the XRP ledger [26][27][28] - ISO 20022 is identified as a key enabler for bridging traditional and decentralized finance, improving data and mandating the adoption of new technologies for efficient cross-border payments [35][36][37][38] - A Standard Chartered executive stated that ISO 20022 can be used to bridge between traditional and decentralized finance [37]

Blockchain Technology & Privacy - SWIFT's Chief Innovation Officer suggests selective privacy is the next step for blockchain, not radical transparency [1] - This vision aligns with ZKsync's Prividium, an institutional-grade platform focused on privacy, compliance, and interoperability [1]

DeFi Integration & Usage - The DeFi sector highlights Chainlink's integration with over 450 protocols, including AAVE, Compound, GMX, and Maple [1] - The report suggests the individual quoted may lack familiarity with DeFi protocols beyond XRPL [1] Institutional Adoption - The report points to Chainlink's adoption by institutions like SWIFT, Euroclear, Mastercard, Fidelity, and JP Morgan's Kinexys Chain [2] - Traditional finance also includes Ark's BTC ETF, UBS, Franklin Templeton, ANZ, HKMA, and Brazil's central bank [2] - Canton Network is also listed as an adopter of Chainlink [2]

Web3 Adoption Strategy - The market's initial expectation of big money driving tech adoption was incorrect [1] - Chainlink's CCIP and Ethereum's base layer are compelling enterprise adoption [1] - Web3's success hinges on a tech stack-first approach, followed by adoption [1] Industry Dynamics - SWIFT's connection of 11,500 banks was driven by necessity, not choice [1] - Money follows infrastructure in the Web3 adoption model [1]