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technological advancement for the interbank sector, potentially transforming international payments reliant on outdated infrastructure [5] - The project reinforces Ethereum's central role in financial experimentation, with findings from earlier trials aimed at easing barriers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]