On November 20th, Citi and Swift announced a successful trial that demonstrated the feasibility of settling payments between fiat and digital currencies using a Payment-versus-Payment (PvP) workflow. This trial leveraged Swift’s existing infrastructure, augmented with blockchain connectors, orchestrators, and smart contracts, to create a hybrid model that blends traditional and digital asset settlement capabilities.
Bringing Fiat and Digital Assets Together
Payment-versus-Payment (PvP) is a mechanism designed to reduce settlement risk by ensuring that both sides of a currency exchange settle simultaneously. Traditionally, fiat currencies are held in bank accounts, while digital assets like stablecoins exist on blockchains and cannot be reversed once sent. This difference creates challenges for synchronised settlement. By combining Swift’s messaging network with institutional-grade blockchain tools, Citi and Swift designed a standard that tracks every step from trade initiation to settlement confirmation.
Citi and Swift testing flows using USDC
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) November 20, 2025
A real-world example illustrates the potential impact. Imagine a multinational corporation needing to convert US dollars into a tokenised euro for a supplier in Europe. With the PvP framework, the USD leg and the digital euro leg can settle in parallel, reducing the risk that one side completes while the other does not. Citi also tested the system using USDC from Circle on Ethereum’s Sepolia testnet, simulating near-production conditions to validate the workflow.
How the Hybrid Model Works
Recent trends in stablecoins highlight the opportunity for innovation. Citi GPS projects the total stablecoin market could reach USD1.9 trillion by 2030, driven by broader adoption and clearer regulatory guidelines. Monthly transaction volumes already approach USD1 trillion, largely serving as intermediaries before being converted into local fiat. The trial directly addresses the challenge of safely exchanging these digital assets for traditional currencies.
Citi and Swift have completed a trial for fiat-to-digital currency payment settlement, achieving synchronized settlement under a Payment-versus-Payment (PvP) workflow. The trial leveraged existing Swift infrastructure combined with blockchain connectors, orchestrators, and smart…
— Wu Blockchain (@WuBlockchain) November 21, 2025
Citi and Swift’s approach incorporates an escrow mechanism to account for the irreversible nature of blockchain transactions. A central orchestrator sequences messages and ensures synchronization between the fiat and DLT legs. This coordination provides finality while maintaining flexibility for institutional users. Although the PvP process does not execute both sides as a single indivisible transaction, it is not fully atomic. It significantly reduces the risk inherent in cross-currency digital asset settlements.