mBridge Nears Commercial Launch as China Advances CBDC Cross-Border Payments Network

The mBridge cross-border payments platform is preparing for a commercial launch, marking a new stage in efforts to use central bank digital currencies (CBDCs) for international transactions and expand alternatives to traditional correspondent banking networks.

According to a Financial Times report citing people familiar with the project, preparations for the rollout are at an advanced stage. The platform is backed by the central banks of China, Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia, while a separate Hong Kong-based entity is expected to oversee operations.

Although no launch date has been announced, sources told the publication that transaction fees are expected to be approximately half those of conventional international payment systems. The platform is designed to facilitate direct cross-border transactions using participating countries' digital currencies, potentially reducing settlement times from days to seconds.

Expanding CBDC-Based Cross-Border Payments

mBridge uses blockchain technology to enable direct transactions between participating jurisdictions using their respective digital currencies. By reducing reliance on intermediary currencies and correspondent banking arrangements, the platform seeks to improve efficiency in cross-border settlements.

Commercial banks are expected to participate in mBridge transactions under the supervision of their respective central banks.

The initiative is designed to complement China's Cross-Border Interbank Payment System (CIPS), which supports international renminbi settlements. While CIPS focuses on conventional payments infrastructure, mBridge is intended to facilitate transactions involving CBDCs, including China's digital yuan (e-CNY).

According to people familiar with the project, mBridge has processed approximately RMB470 billion (around $69 billion) in transactions to date.

From Pilot Testing to UAE Real-Value Transactions

The initiative originated from a collaboration between the Hong Kong Monetary Authority and the Bank of Thailand under the Inthanon-LionRock project. It later evolved into mBridge in 2021 with participation from the Bank for International Settlements (BIS), the People's Bank of China, the Central Bank of the UAE, and other partner institutions.

The planned commercial launch follows several years of development and testing. In 2022, participating central banks completed large-scale pilot transactions through the platform, demonstrating the viability of multi-CBDC settlements across multiple jurisdictions. Later, the UAE expanded its participation through the Digital Dirham program, including the country's first real-value cross-border payment conducted using mBridge.

The project has also undergone significant governance changes. In 2024, the BIS transferred management of mBridge to participating central banks, ending its direct involvement in the initiative. The transition followed a period of uncertainty surrounding the project's future after reports emerged that the BIS was evaluating whether to continue its participation amid growing geopolitical scrutiny of alternative payment networks.

Project participants and the BIS have maintained that mBridge complies with Financial Action Task Force (FATF) anti-money laundering standards.

Alternative Networks Gain Momentum

The development comes as governments and private-sector companies increasingly explore alternative cross-border payment infrastructures focused on faster and lower-cost transactions.

Alongside mBridge, regional payment initiatives and private-sector networks are seeking to improve efficiency for international transfers, particularly smaller and real-time transactions.

Analysts cited by the Financial Times argue that the global payments ecosystem is gradually evolving from a structure heavily centered on SWIFT toward a landscape consisting of multiple interoperable and competing payment networks.

Strategic Implications

For China, mBridge represents another component of a broader effort to internationalize the renminbi and expand the role of the digital yuan in cross-border commerce.

The initiative has gained additional relevance as China seeks to strengthen financial connectivity with trading partners and Belt and Road economies. Supporters argue that faster settlement and lower transaction costs could improve liquidity management for exporters and businesses engaged in international trade.

More broadly, analysts suggest that the emergence of platforms such as mBridge reflects growing interest among central banks in developing alternative payment infrastructures capable of operating alongside existing global networks rather than replacing them entirely.

The commercial rollout will be closely watched by central banks, financial institutions, and policymakers as CBDC-based payment systems continue their transition from pilot programs to operational deployment.

China's broader digital currency strategy has increasingly combined domestic adoption efforts with cross-border settlement infrastructure. While the digital yuan has expanded its user base and transaction volumes within China, initiatives such as mBridge seek to extend its utility beyond domestic payments by creating channels for international settlement using central bank digital currencies.