$55B Settled: How China’s mBridge Is Quietly Redrawing Global Payments

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• mBridge has settled over $55B in cross-border CBDC transactions.
• The digital yuan dominates activity and is evolving into a deposit-like currency.
• The platform reflects a push for parallel payment rails, not a direct dollar replacement.

China-led efforts to modernize cross-border payments are accelerating, with the multi-central bank digital currency platform mBridge quietly reaching scale. The project has now settled more than $55 billion in transactions, highlighting growing momentum behind payment systems designed to operate alongside—rather than within—traditional dollar-based rails.

Launched as a collaborative experiment among several central banks, mBridge has moved well beyond its pilot phase. The platform’s growth underscores how digital currencies are increasingly being tested not just for domestic use, but for international settlement as well.

mBridge’s Rapid Growth Signals Shift in Cross-Border Payments

Since early trials in 2022, mBridge’s transaction volume has surged dramatically. More than 4,000 cross-border transfers have been processed to date, reflecting a sharp rise in real-world testing among participating jurisdictions. Central banks in mainland China, Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia are currently involved in the platform’s trials.

China’s digital yuan plays a central role. The e-CNY accounts for the vast majority of settlement activity on mBridge, reinforcing Beijing’s position as the project’s primary driver. While still experimental, the platform demonstrates how CBDCs could reduce friction in cross-border payments by enabling direct settlement between central banks.

Digital Yuan Evolves From Payment Tool to Financial Infrastructure

At home, China is also expanding the digital yuan’s function. The e-CNY has already processed trillions of yuan in transactions, reflecting a steep year-over-year increase. More importantly, policymakers are reshaping the digital currency’s role.

A new framework from the People’s Bank of China will allow commercial banks to pay interest on digital yuan balances. This shift moves the e-CNY beyond its original cash-like design, positioning it closer to a digital deposit instrument that can support savings, lending, and international use.

Analysts note that these steps point to a longer-term strategy: strengthening the yuan’s global relevance through technology rather than direct confrontation with the US dollar.

BIS Steps Back as Geopolitical Questions Persist

Not everyone involved remains at the table. In 2024, the Bank for International Settlements reduced its role in mBridge, framing the move as a handover rather than a withdrawal. The decision followed speculation that the platform could be used to sidestep international sanctions—claims the BIS publicly rejected.

The BIS has since shifted attention to other digital settlement initiatives with Western central banks, while mBridge continues under the leadership of its remaining participants.

A Parallel Track, Not a Dollar Replacement

Taken together, mBridge’s growth and the digital yuan’s evolution suggest a measured approach to financial change. Rather than attempting to replace existing systems, China and its partners appear focused on building parallel infrastructure—one that offers alternatives without forcing a direct break from the current global order.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.