China’s mBridge platform has revolutionized cross-border payments, processing over $55 billion in transactions and emerging as a powerful alternative to traditional systems like SWIFT. Led by the People’s Bank of China in partnership with central banks from Hong Kong, Thailand, the UAE, and Saudi Arabia, this wholesale CBDC initiative leverages blockchain technology to enable real-time settlements, slashing costs and times while challenging the dominance of the US dollar in global finance.
The Rise of mBridge: From Pilot to Powerhouse
Project mBridge began as an experimental collaboration under the Bank for International Settlements (BIS) Innovation Hub, evolving through phases that tested distributed ledger technology (DLT) for multi-CBDC transactions. Initially known as Inthanon-LionRock, it expanded to include the UAE and later Saudi Arabia, reaching its minimum viable product (MVP) stage in mid-2024. By late 2025, the platform had executed over 4,000 cross-border transactions totaling $55.49 billion, marking a staggering 2,500-fold increase from early 2022 pilots. The digital yuan, or e-CNY, dominated with 95% of settlement volume, underscoring China’s pivotal role.
This explosive growth continued into early 2026, surpassing $55.5 billion amid 3.4 billion transactions. mBridge’s proprietary blockchain, the mBridge Ledger, supports Ethereum Virtual Machine compatibility, enabling smart contracts for programmable payments. Unlike legacy systems reliant on correspondent banking, it facilitates peer-to-peer settlements in seconds, bypassing intermediaries and reducing liquidity needs through algorithmic mechanisms.
How mBridge Works: Technology at the Core
At its heart, mBridge is a blockchain-enabled platform designed for wholesale cross-border payments and foreign exchange (FX) settlements. Central banks connect directly via the ledger, validating transactions on behalf of commercial banks in a 24/7 environment. This payment-versus-payment (PvP) model ensures atomic swaps, minimizing settlement risk.
Key technical features include:
- Real-time processing: Transactions settle in seconds, compared to days in traditional systems.
- Cost reductions: Up to 70% savings by eliminating nostro-vostro accounts, FX hedging, and compliance overheads.
- Programmability: Smart contracts allow conditional payments, ideal for trade finance and commodities.
- Multi-CBDC support: Automatic conversions between digital currencies like e-CNY, digital dirham, and others, without needing a dominant third currency like the dollar.
In a landmark test, the UAE Ministry of Finance executed the first government transaction using the wholesale digital dirham on mBridge, integrating public-sector systems seamlessly. Energy and commodity exporters, key partners in China’s Belt and Road Initiative (BRI), have adopted it for trade settlements, drawn by its efficiency in volatile markets.
A Game-Changer for Cross-Border Payments
Traditional cross-border payments, especially wholesale ones for interbank transfers and corporate treasury, suffer from fragmentation. Systems like SWIFT rely on messaging that takes 1-3 days, burdened by unstructured data, multiple intermediaries, and high fees. Bank wires and card networks add layers of delay and cost, while Continuous Linked Settlement (CLS) handles FX but not all flows.
mBridge addresses these pain points head-on. By enabling direct local-currency settlements, it cuts exchange rate volatility and reserve requirements. For developing countries, where remittances hit $589 billion in 2022, it promises faster, cheaper transfers—crucial for migrant workers. Global South economies and BRI nations find it particularly appealing, as it supports economic sovereignty without dollar dependency.
| Feature | mBridge | SWIFT (Traditional) |
|---|---|---|
| Settlement Time | Seconds | 1-3 days |
| Cost Savings | Up to 70% | Baseline (high fees) |
| Intermediaries | None (P2P) | Multiple (correspondent banks) |
| Currency Flexibility | Multi-CBDC direct | USD-dominant |
This comparison highlights mBridge’s edge, especially as SWIFT experiments with CBDC interoperability but remains tied to its legacy infrastructure.
Geopolitical Ripples and the BIS Withdrawal
mBridge’s ascent carries profound geopolitical weight. With the dollar holding 58% of global reserves, the platform challenges its hegemony by enabling non-USD corridors. Its appeal to sanctioned nations—19 under US/EU restrictions—lies in evading SWIFT’s vulnerabilities, offering surveillance tools for participating central banks while enhancing stability.
In late 2024, the BIS stepped back, handing control to the five member banks to avoid sanctions speculation. Though officially apolitical, the move reflected tensions with the existing financial order. Expansion plans for 2025 eyed Russia and more BRI partners, accelerating adoption among energy exporters.
China bolsters this with e-CNY innovations: from January 2026, holdings earn interest tied to deposit rates, morphing it into a “digital deposit” attractive for savings and international use. The new RMB International Operations Center in Shanghai further pushes on-chain settlements.
Challenges and the Road Ahead
Despite triumphs, hurdles remain. Interoperability with domestic systems demands robust infrastructure, particularly in developing markets. Security, compliance, and scalability must scale with volume. SWIFT’s beta CBDC project offers a counterpoint, leveraging its network for gradual integration, but lacks mBridge’s native DLT speed.
Critics frame mBridge as de-dollarization fuel, yet evidence shows incremental shifts driven by convenience, sanctions, and trade needs—not outright replacement. As China leads CBDC deployment, others lag: the digital euro eyes 2030, India’s pilots proceed cautiously.
The Bigger Picture: Reshaping Global Finance
mBridge exemplifies CBDCs’ transformative potential, proving blockchain can deliver efficient, inclusive cross-border payments. Its $55 billion milestone signals a multipolar financial future, where alternatives to SWIFT empower emerging economies and diversify settlement options. For businesses, governments, and banks, embracing such platforms means adapting to programmable money’s era—faster trade, lower risks, and new opportunities.
Ultimately, mBridge is more than a payment system; it’s a blueprint for financial sovereignty in a digital age. As adoption surges, it compels the world to rethink entrenched systems, fostering innovation amid geopolitical flux. The message is clear: the future of global finance is borderless, efficient, and increasingly CBDC-driven.
