SWIFT, the global financial messaging backbone, has launched a blockchain pilot with Linea, an Ethereum Layer-2 network by Consensys. The project will test on-chain messaging and a stablecoin-like settlement token with more than a dozen global banks. Participants include BNP Paribas and BNY Mellon, according to The Big Whale. The trial seeks to cut costs […]SWIFT, the global financial messaging backbone, has launched a blockchain pilot with Linea, an Ethereum Layer-2 network by Consensys. The project will test on-chain messaging and a stablecoin-like settlement token with more than a dozen global banks. Participants include BNP Paribas and BNY Mellon, according to The Big Whale. The trial seeks to cut costs […]

SWIFT partners with Linea to test blockchain messaging and interbank token

2025/09/27 16:21
SWIFT
  • SWIFT pilots blockchain messaging and interbank token settlement with Linea and top banks.
  • Stablecoins surpass $270B market value as adoption rises across banks and institutions.
  • Ripple faces tougher competition as SWIFT expands blockchain-based cross-border settlement.

SWIFT, the global financial messaging backbone, has launched a blockchain pilot with Linea, an Ethereum Layer-2 network by Consensys. The project will test on-chain messaging and a stablecoin-like settlement token with more than a dozen global banks. Participants include BNP Paribas and BNY Mellon, according to The Big Whale.

The trial seeks to cut costs and increase speed in cross-border settlements. Payment instructions and settlement will combine into a single on-chain transaction, allowing participants to track transactions in real time.

SWIFT currently connects more than 11,000 financial institutions worldwide but relies on correspondent banks and multiple intermediaries.

Linea Blockchain Technology for Secure Banking

The pilot expands SWIFT’s digital asset strategy. The organization has also tested tokenized fund settlement with UBS Asset Management and Chainlink and joined the Bank for International Settlements’ Project Agora.

Linea’s network is designed to be compatible with Ethereum which ensures privacy and provides advanced cryptographic security. Linea uses zk-rollup technology, which offers scalability and low-cost transactions while ensuring Ethereum-level security. 

Its privacy features, based on zero-knowledge proofs, make it suitable for banks to balance innovation with regulatory compliance. Linea’s network also assists institutions in exploring tokenized payments in trusted frameworks. 

The pilot also follows the growing use of stablecoins in global finance. The total market value of stablecoins has grown to over $270 billion, with Circle’s USDC and Tether (USDT) leading the sector.

Stablecoin Adoption and Expanding Infrastructure

In July, the US passed the first federal stablecoin law, which has prompted banks to explore their own tokens. Additionally, technology companies are showing interest, with Apple, Airbnb, Uber, and X reviewing stablecoin payment options. Furthermore, Google Cloud accepts PayPal’s PYUSD and supports stablecoin-based frameworks.

The institutional infrastructure is also expanding. For instance, Fireblocks, a crypto services firm valued at $8 billion, introduced a stablecoin payments network with more than 40 participants, including Circle and Stripe-owned Bridge. The system can facilitate enterprise cross-border transactions and is experimenting with pilots in Japan.

Also Read: Circle and Fireblocks Forge Powerful Alliance to Transform Cross-Border Payments

Cross-Border Payments Competition with Ripple Network

In addition, the pilot also signals increased competition in cross-border settlements, a space in which Ripple has positioned itself as a leader. Ripple’s use of a blockchain-based payment system has long been touted as a faster and cheaper alternative to SWIFT’s traditional system.

SWIFT’s pilot signals its intent to maintain leadership in global finance by offering its own settlement token. By offering its own settlement token, SWIFT aims to provide banks with trusted rails. Tom Zschach, SWIFT’s chief innovation officer, said that banks are likely to be interested in tokenized deposits or regulated stablecoins.

Following the announcement, Linea’s native cryptocurrency saw a more than 7% price increase. The rise indicated market interest in Linea’s potential for institutional adoption.

Also Read: Coinbase, Sony, and Samsung Power $14.6M Boost for Breakthrough Stablecoin Startup Bastion

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The technology-heavy Nasdaq Composite also saw a slight retreat, sliding by 0.33%. This particular index often reflects investor sentiment towards growth stocks and the tech sector. These divergent outcomes highlight the complex dynamics currently at play within the American economy. It’s not simply a matter of “up” or “down” for the entire US stock market; rather, it’s a nuanced landscape where different sectors and company types are responding to unique pressures and opportunities. Why Did the US Stock Market See Mixed Results? When the US stock market delivers a mixed performance, it often points to a tug-of-war between various economic factors. Several elements could have contributed to Wednesday’s varied closings. For instance, positive corporate earnings reports from certain industries might have bolstered the Dow. At the same time, concerns over inflation, interest rate policies by the Federal Reserve, or even global economic uncertainties could have pressured growth stocks, affecting the S&P 500 and Nasdaq. Key considerations often include: Economic Data: Recent reports on employment, manufacturing, or consumer spending can sway market sentiment. Corporate Announcements: Strong or weak earnings forecasts from influential companies can significantly impact their respective sectors. Interest Rate Expectations: The prospect of higher or lower interest rates directly influences borrowing costs for businesses and consumer spending, affecting future profitability. Geopolitical Events: Global tensions or trade policies can introduce uncertainty, causing investors to become more cautious. Understanding these underlying drivers is crucial for anyone trying to make sense of daily market fluctuations in the US stock market. Navigating Volatility in the US Stock Market A mixed close, while not a dramatic downturn, serves as a reminder that market volatility is a constant companion for investors. For those involved in the US stock market, particularly individuals managing their portfolios, these days underscore the importance of a well-thought-out strategy. It’s important not to react impulsively to daily movements. Instead, consider these actionable insights: Diversification: Spreading investments across different sectors and asset classes can help mitigate risk when one area underperforms. Long-Term Perspective: Focusing on long-term financial goals rather than short-term gains can help weather daily market swings. Stay Informed: Keeping abreast of economic news and company fundamentals provides context for market behavior. Consult Experts: Financial advisors can offer personalized guidance based on individual risk tolerance and objectives. Even small movements in major indexes can signal shifts that require attention, guiding future investment decisions within the dynamic US stock market. What’s Next for the US Stock Market? Looking ahead, investors will be keenly watching for further economic indicators and corporate announcements to gauge the direction of the US stock market. Upcoming inflation data, statements from the Federal Reserve, and quarterly earnings reports will likely provide more clarity. The interplay of these factors will continue to shape investor confidence and, consequently, the performance of the Dow, S&P 500, and Nasdaq. Remaining informed and adaptive will be key to understanding the market’s trajectory. Conclusion: Wednesday’s mixed close in the US stock market highlights the intricate balance of forces influencing financial markets. While the Dow showed strength, the S&P 500 and Nasdaq experienced slight declines, reflecting a nuanced economic landscape. This reminds us that understanding the ‘why’ behind these movements is as important as the movements themselves. As always, a thoughtful, informed approach remains the best strategy for navigating the complexities of the market. Frequently Asked Questions (FAQs) Q1: What does a “mixed close” mean for the US stock market? A1: A mixed close indicates that while some major stock indexes advanced, others declined. It suggests that different sectors or types of companies within the US stock market are experiencing varying influences, rather than a uniform market movement. Q2: Which major indexes were affected on Wednesday? A2: On Wednesday, the Dow Jones Industrial Average gained 0.57%, while the S&P 500 edged down 0.1%, and the Nasdaq Composite slid 0.33%, illustrating the mixed performance across the US stock market. Q3: What factors contribute to a mixed stock market performance? A3: Mixed performances in the US stock market can be influenced by various factors, including specific corporate earnings, economic data releases, shifts in interest rate expectations, and broader geopolitical events that affect different market segments uniquely. Q4: How should investors react to mixed market signals? A4: Investors are generally advised to maintain a long-term perspective, diversify their portfolios, stay informed about economic news, and avoid impulsive decisions. Consulting a financial advisor can also provide personalized guidance for navigating the US stock market. Q5: What indicators should investors watch for future US stock market trends? A5: Key indicators to watch include upcoming inflation reports, statements from the Federal Reserve regarding monetary policy, and quarterly corporate earnings reports. These will offer insights into the future direction of the US stock market. Did you find this analysis of the US stock market helpful? Share this article with your network on social media to help others understand the nuances of current financial trends! To learn more about the latest stock market trends, explore our article on key developments shaping the US stock market‘s future performance. This post Crucial US Stock Market Update: What Wednesday’s Mixed Close Reveals first appeared on BitcoinWorld.
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