Joe Lubin Confirms SWIFT Has Chosen Linea as the Foundation for Its New Global Payment System

ConsenSys CEO Joe Lubin has officially confirmed that the global financial network SWIFT will adopt Linea, an Ethereum Layer-2 technology, as the core foundation for developing the next generation of its global payment settlement system. The announcement has sent shockwaves through both the financial and crypto industries, marking a concrete step toward the integration of traditional finance (TradFi) with modern blockchain technology.

Confirmation at Token2049 Singapore

During the Token2049 conference in Singapore, Lubin revealed that the decision to use Linea had actually been made earlier, although it was not explicitly mentioned in SWIFT’s official statement to global banking institutions.

According to Lubin, the implementation has been carried out through a “soft roll-out”, or gradual deployment, which has received positive responses from several major banking institutions.

“This step marks a pivotal moment in uniting the two major forces in the financial industry — DeFi and TradFi,” Lubin stated at the conference, as quoted by Cointelegraph.

Technical Details and Involvement of Major Financial Institutions

Linea, developed by ConsenSys, is a zk-EVM rollup–based protocol designed to deliver significantly higher cost efficiency compared to direct transactions on the Ethereum mainnet.

According to Cointelegraph, Linea is capable of processing approximately 1.5 transactions per second with transaction fees that are fifteen times lower than those on Ethereum’s main network. This new infrastructure will be tested by more than 30 international financial institutions, including Bank of America, Citi, and JPMorgan Chase, as part of a joint trial program. Through this initiative, SWIFT aims to transform itself from a traditional interbank messaging network into a global transaction settlement system, capable of providing real-time, 24/7 cross-border settlements while reducing operational costs and minimizing errors.

Major Implications and Challenges Ahead

SWIFT’s decision to adopt Linea is viewed as a strategic turning point that could reshape the future of the global payments industry. However, several analysts believe that key challenges must still be addressed before the system can reach full-scale implementation.

1. Competition with Other Crypto Networks

SWIFT’s choice to adopt a “neutral” network  one that does not rely on a specific token such as XRP — has sparked new debates. Some observers argue that this move could diminish XRP’s role as a bridge asset, while others see it as an opportunity to foster healthier competition within an open and interoperable ecosystem.

2. Scalability and System Capacity

Although Linea promises high efficiency, significant questions remain about its ability to handle the vast global transaction volume processed through the SWIFT network.

3. Regulation and Interoperability

As the project involves numerous multinational banks, it must comply with cross-jurisdictional regulatory standards such as AML, KYC, and international financial supervision.
Additionally, ensuring interoperability with existing legacy banking systems presents another major challenge.

4. Implementation Risks and Real-World Execution

Some analysts caution that the excitement surrounding this announcement should be tempered with pragmatism.
Implementing a blockchain-based system at a global scale will not be without hurdles — including technical, legal, and institutional resistance from traditional entities.

A Landmark Step Toward Blockchain-Based Global Finance

Joe Lubin’s confirmation marks a significant milestone for SWIFT in strengthening its position in the emerging era of blockchain-powered digital finance. With Linea as its technological backbone, this initiative has the potential to establish a faster, more transparent, and more efficient cross-border payment system. However, the success of this program will ultimately depend on real-world implementation and SWIFT’s ability — along with its partners  to navigate challenges related to scalability, regulation, and global system integration.