Citibank and Swift Pilot PvP Settlement Using USDC on Ethereum Sepolia Testnet to Demonstrate Fiat–Digital Currency Interoperability

Citibank and SWIFT have completed a pilot demonstrating PvP settlement between fiat and digital currencies, affirming the interoperability of traditional banking rails with a distributed ledger network. The program validates near-production viability and shows how real-time finality can be achieved within existing settlement workflows.

Built on SWIFT’s infrastructure, the project integrated an institutional-grade blockchain connector, a business process coordinator, and smart contracts to orchestrate cross-asset transfers with end-to-end control. Citibank also operated a test version of USDC on the Ethereum Sepolia testnet to simulate conditions close to production.

The initiative signals meaningful improvements for cross-border liquidity and risk management, with potential for clearer audit trails, standardization, and faster closing cycles in fiat-to-digital exchanges. As payments rails evolve, market participants will watch for further regulatory and technical validations before broader deployment.