Ethereum co-founder Joe Lubin announced on Bloomberg Crypto a collaboration between ConsenSys and SWIFT to develop a blockchain-based shared ledger prototype. This historic milestone signifies the intersection of traditional finance and decentralized infrastructure, integrating the ISO 20022 standard into the Ethereum ecosystem. The implications for ETH and cross-border payment markets are substantial.
The SWIFT network, which daily transports trillions of dollars between more than 11,000 financial institutions across 200 countries, unveiled its shared ledger project at Sibos in Frankfurt on September 29. ConsenSys is building the prototype for this infrastructure that will enable instant cross-border transactions 24/7 on a global scale.
Joe Lubin confirmed that the initial development will implement financial messaging via the ISO 20022 standard, while highlighting that some participating banks are already exploring settlement layers. The infrastructure will remain asset-agnostic and interoperable with both public and private networks, thereby meeting banking compliance requirements.
The timing is strategic. With the stablecoin market reaching $300 billion and a proliferation of bank tokenization projects, SWIFT positions this ledger as an extension of its existing networks rather than a replacement. Official documents designate ConsenSys as the key technology partner, with smart contracts enforcing business rules.
Lubin declined to provide a precise timeline but indicated that teams are defining the project’s end state before working backward in their planning. Discretion remains paramount regarding technical details, with SWIFT controlling communication around the deployment.
Although SWIFT has not officially specified the underlying blockchain, several post-Sibos industry reports and Lubin’s statements confirm that the prototype will run on Ethereum infrastructure, specifically on Linea. This Layer 2 network developed by ConsenSys uses zero-knowledge proofs to optimize performance while maintaining security.
This technical architecture addresses the specific requirements of banks: a permissioned scope ensuring regulatory compliance, coupled with the power of Ethereum smart contracts. Linea offers reduced fees and high transaction throughput, two prerequisites for processing SWIFT volumes.
Joe Lubin highlighted a major shift in sentiment at Sibos in Frankfurt. While Ethereum was expected to “stay in its own lane” since its inception, banks now give very positive feedback regarding the merger or use of DeFi by traditional finance. This evolution reflects the growing maturity of the crypto sector and institutional recognition of the value of decentralized protocols.
The SWIFT-ConsenSys prototype involves technologists “on their side and many people on our side,” with SWIFT controlling the messaging scope while banks explore deeper layers such as atomic settlement. This progressive approach allows for gradual adoption without abrupt disruption of existing systems.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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