SWIFT — the Society for Worldwide Interbank Monetary Telecommunication — might be constructing its just lately introduced blockchain fee settlement platform on Ethereum layer 2 Linea, Consensys CEO Joe Lubin has confirmed.
On Monday, SWIFT revealed that it tapped Consensys and over 30 TradFi establishments to build infrastructure for a 24/7 real-time crypto funds system — however didn’t affirm which chain it will construct on regardless of widespread hypothesis that it will be Linea.
However Lubin confirmed Linea’s choice in a hearth chat with Cointelegraph’s Gareth Jenkinson on the TOKEN2049 conference in Singapore on Thursday.
Lubin mentioned that in SWIFT’s announcement to the banking sector, SWIFT CEO Javier Pérez-Tasso didn’t point out Linea by identify. Lubin mentioned SWIFT needed to “smooth roll out” the “large information,” which was taken quite positively.
“I consider the sentiment was, ‘thanks for doing this.’ It’s about time to convey the 2 streams, DeFi and TradFi, collectively,” mentioned Lubin.
Developed by Consensys, Linea is a scaling-focused layer 2 that leverages zk-EVM rollup expertise to course of round 1.5 transactions a second at one-fifteenth the price of charges on Ethereum.
It has $2.27 billion price of total value locked — the fourth largest amongst Ethereum layer 2s, trailing solely Arbitrum One, Base Chain and OP Mainnet, L2BEAT data exhibits.
SWIFT’s entry into the blockchain funds house might be large, because it handles round $150 trillion price of worldwide funds by way of conventional banking rails every year.
A few of the largest banks are concerned
Financial institution of America, Citi, JPMorgan Chase, and Toronto-Dominion Financial institution are among the many TradFi corporations set to participate in trials of SWIFT’s new blockchain funds rail on Linea.
It might pose a critical competitor to Ripple’s XRP Ledger, one of many few distinguished blockchain-based fee programs tailor-made for banks.
SWIFT’s transfer to construct a blockchain funds rail has been anticipated for a while, benefiting from the blockchain’s near-instant, 24/7 settlement with out intermediaries, whereas lowering prices, errors, and delays.
Linea might allow a “user-generated civilization,” says Lubin
Lubin highlighted the broader potential of Linea past funds, describing it as a platform the place “content material could be created in a user-generated style.”
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“We may have user-generated civilization and user-generated content material on Linea and different locations,” Lubin mentioned, explaining that by leveraging Ethereum’s trustless settlement layer, Linea permits communities to construct infrastructure, guidelines, and apps from the underside up — reverse to the top-down strategy seen in conventional authorities and banking hierarchies.
Decentralized autonomous organizations are already making an attempt to run entities with out centralized management, typically implementing sensible contracts and decentralized voting programs to handle treasuries and make selections. Nevertheless, few DAOs have achieved success at scale to this point.
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