Citi and Swift have completed a landmark trial showing that payments between fiat and digital currencies can be safely and efficiently settled using a new hybrid Payment-versus-Payment (PvP) model. By enhancing Swift’s existing global infrastructure with blockchain connectors, smart contracts, and orchestration tools, the partners demonstrated seamless interoperability between traditional banking systems and Distributed Ledger Technology.
The test used Circle’s USDC tokens on the Ethereum Sepolia testnet to simulate real-world conditions, introducing an escrow mechanism to address the irreversible nature of blockchain transactions. Leaders from both organizations said the successful trial highlights how blockchain can boost speed, transparency, and security for cross-currency settlements while reducing risk.
The initiative marks a major step toward scalable, institutional-grade digital asset solutions as stablecoin use surges worldwide. Citi and Swift plan to refine the model with industry partners to establish unified standards that support the growing demand for efficient fiat-to-digital currency settlement across global financial networks.
