SWIFT is using Ethereum's L2 Linea technology to create a cryptographic ledger and is currently conducting prototype testing with over 30 banks in partnership. This supports real-time payments, messaging, and stablecoin settlements. If the testing goes smoothly, it means more institutions will join in. SWIFT connects over 11,500 financial institutions globally, processing approximately $150 trillion in transactions annually. If it implements its ledger on Ethereum L2, it will be significant for Ethereum. First, it signifies financial institutions' acceptance of the Ethereum technology stack, facilitating Ethereum's role as a neutral settlement layer, bridging traditional and crypto finance. Second, the real-time cross-border payments and tokenized asset settlements processed by SWIFT's ledger ultimately rely on Ethereum's security. If a portion of SWIFT's transaction volume (trillions of dollars daily) is moved on-chain, it will drive Ethereum to support a larger scale of stablecoins and tokenized assets, increasing daily active users, transaction volume, and gas fee consumption within the Ethereum ecosystem. For Ethereum (ETH), a larger scale of assets on-chain places higher demands on its security and increases staking requirements. Simultaneously, the significant increase in transactions will also benefit ETH consumption, enhancing its value. The scale of assets that Ethereum can support in the next decade will be beyond imagination.
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Swift
@swiftcommunity
12-19
We’re already making progress with our plans to add a blockchain-based ledger to our infrastructure, working with a global group of 30+ banks globally to shape the ledger’s design.
“In order to unlock that benefit of scale, we need to work together,” said Thierry Chilosi, our
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