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SWIFT Reportedly Developing Stablecoin and On-Chain Messaging on Linea Network

SWIFT Reportedly Developing Stablecoin and On-Chain Messaging on Linea Network

SWIFT’s ongoing pilot on Ethereum’s Layer-2 network Linea, involving over ten financial institutions including BNP Paribas and BNY Mellon, could lead to a major shift in cross-border banking payments.

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Summary

SWIFT is testing message transmission on Ethereum's Layer-2 network Linea, with over ten financial institutions, including BNP Paribas and BNY Mellon, involved in the project. Full testing is expected to take several months and could signal a major technological shift in international payments systems.

Terms & Concepts
  • Ethereum Layer-2: A secondary framework built on top of the Ethereum blockchain to improve scalability by processing transactions off-chain while maintaining Ethereum's security.
  • SWIFT messaging system: The global messaging platform used by financial institutions for exchanging secure transaction and payment instructions.
  • BNY Mellon: A major U.S.-based investment banking services company, specializing in asset management, investment services, and securities.