Citi and Swift Complete Landmark Fiat-to-Digital Currency Payment Trial

Citi and Swift have successfully demonstrated a hybrid payment system bridging traditional finance and blockchain networks. Their trial proved the feasibility of Payment-versus-Payment (PvP) settlements between fiat and digital currencies using enhanced Swift infrastructure with blockchain connectors.

The solution employs smart contracts and an escrow mechanism to ensure secure, irreversible transactions. During testing, Citi utilized USDC tokens on Ethereum's Sepolia network to simulate real-world conditions. This breakthrough establishes a framework for future institutional adoption of digital asset transactions.

"These trials mark a significant advancement in building infrastructure for digital currency transactions," noted Ayesa Latif, Head of Digital Assets at Citi. The collaboration plans to refine the model with broader financial industry participation, potentially setting new standards for cross-border digital payments.