SWIFT — the Society for Worldwide Interbank Monetary Telecommunication — can be constructing its not too long ago introduced blockchain fee settlement platform on Ethereum layer 2 Linea, Consensys CEO Joe Lubin has confirmed.
On Monday, SWIFT revealed that it had tapped Consensys and over 30 TradFi establishments to construct infrastructure for a 24/7 real-time crypto funds system — however didn’t verify which chain it might construct on regardless of widespread hypothesis that it might be Linea.
Nonetheless, Lubin confirmed Linea’s choice in a hearth chat with Cointelegraph’s Gareth Jenkinson on the Token2049 convention 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 title. Lubin mentioned SWIFT needed to “smooth roll out” the “massive information,” which was taken quite positively.
“I imagine the sentiment was, ‘thanks for doing this.’ It’s about time to convey the 2 streams, DeFi and TradFi, collectively,” mentioned Lubin.
Cointelegraph’s Gareth Jenkinson with Joe Lubin and Snow Crash writer Neal Stephenson. Supply: Cointelegraph
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 complete worth locked — the fourth largest amongst Ethereum layer 2s, trailing solely Arbitrum One, Base Chain and OP Mainnet, L2BEAT knowledge reveals.
SWIFT’s entry into the blockchain funds area may very well be large, because it handles round $150 trillion price of world funds by way of conventional banking rails annually.
A few of the greatest banks are concerned
Financial institution of America, Citi, JPMorgan Chase, and Toronto-Dominion Financial institution are among the many TradFi companies set to take part in trials of SWIFT’s new blockchain funds rail on Linea.
It may pose a critical competitor to Ripple’s XRP Ledger, one of many few outstanding blockchain-based fee techniques 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 may 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 will be created in a user-generated trend.”
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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 attempting to run entities with out centralized management, usually implementing sensible contracts and decentralized voting techniques to handle treasuries and make choices. Nonetheless, few DAOs have achieved success at scale to this point.
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