- SWIFT selected Linea, an Ethereum-based blockchain, for its on-chain bank messaging program, leaving out Ripple‘s XRP Ledger.
- The pilot program also uses stablecoins on Linea, not Ripple’s RLUSD stablecoin.
- XRP supporters had anticipated that SWIFT would partner with or adopt the XRP Ledger for cross-border payments.
- Linea was chosen for its privacy-focused cryptography, including zero-knowledge proofs.
- Other financial tech firms, such as Stripe, have also turned to different blockchains over the XRP Ledger.
SWIFT, the international banking network handling more than $150 trillion in wire transfers each year, has picked Linea, an Ethereum-based layer 2 blockchain by ConsenSys, for its new on-chain bank messaging system. The decision excludes Ripple’s XRP Ledger, a payment protocol once thought to be a likely partner for SWIFT.
SWIFT will also use stablecoins built on Linea for its pilot program, bypassing Ripple’s RLUSD stablecoin. According to reports, leading banks such as BNP Paribas and BNY are already involved in pilot programs on Linea.
For years, XRP supporters have argued that the XRP Ledger could replace or work with SWIFT’s messaging technology to improve cross-border settlement speed and lower costs. Linea’s selection marks a setback for this community. “This cannot be true, not possible,” joked industry observer Gary Cardone, referring to earlier claims about XRP’s expected role with SWIFT.
Ripple had introduced RLUSD, a stablecoin tied to the U.S. dollar, to highlight the XRP Ledger’s ability to enable USD-denominated cross-border payments. Despite hopes and some false reports, a direct partnership between SWIFT and Ripple’s XRP Ledger never materialized. SWIFT has now confirmed that its focus is on developing systems with Linea, which is backed by ConsenSys and the Linea Association, a nonprofit group.
Initial statements from the project note that SWIFT selected Linea for its privacy-preserving zero-knowledge proofs. These cryptographic techniques allow banks to confirm transactions without sharing sensitive information, helping them comply with regulatory requirements like KYC (Know Your Customer) and AML (Anti-Money Laundering) while protecting privacy.
Market response to the news remained muted, as prices for both the LINEA token and XRP traded within a single-digit percentage range following the announcement.
Meanwhile, major payments firm Stripe, valued at $92 billion, also decided against using the XRP Ledger in favor of integrating layer 1 blockchain Tempo, according to recent reports.
For more details on SWIFT’s pilot programs and Linea’s technology, see the official announcement from Gregory Raymond and background reporting from PYMNTS. Further context on XRP’s attempts to work with SWIFT is available from Coinpedia.
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