Central Bank Digital Currency Platform Touts Landmark Transactions

By the Editorial Team · Thursday, July 23, 2026

The Bank of China completed two major cross-border transactions surpassing US$1.71 billion each through the mBridge digital currency platform, demonstrating its ability to handle large and diverse multi-currency settlements. This progress underscores China’s strategic push to internationalize the yuan and develop alternative payment systems that reduce reliance on Western financial infrastructure.

The Bank of China has processed two landmark cross-border transactions exceeding US$1.71 billion each through mBridge, a multilateral central bank digital currency (CBDC) platform, underscoring progress in Beijing’s efforts to promote the yuan’s international use. The trades were completed by the bank’s Shenzhen and Fujian branches in June and July, respectively.

These transactions demonstrate mBridge’s capacity to facilitate large-scale cross-border settlements involving multiple currencies and diverse business contexts, according to the lender. The platform, launched as a collaborative initiative among the central banks of mainland China, Hong Kong, Macau, Saudi Arabia, the United Arab Emirates (UAE), and Thailand, employs blockchain technology to deliver faster, peer-to-peer CBDC settlements that bypass traditional correspondent banking channels and their associated fees and delays.

Last month, the Bank of China completed an outbound transfer of 11.3 billion yuan (HK$13.1 billion) that delivered same-day, full-value funds to a corporate client. The following month, an inbound payment denominated in Hong Kong dollars was transferred from an overseas sender to an onshore corporate account in under 10 minutes. The bank identified this payment as the largest transaction by value on the platform since its inception, though it did not disclose the exact amount.

Earlier in June, the Bank of China facilitated Macau’s first mBridge transaction following the city’s recent inclusion in the network — an e-CNY transfer exceeding 20 million yuan to Hong Kong. On the same day, the bank’s Macau branch completed the city’s inaugural mBridge payment to the UAE, a milestone described in local reports as broadening currency circulation to the Middle East and unlocking the cross-border potential of digital finance.

By the end of June, cumulative transaction volumes on mBridge had surpassed 600 billion yuan, with the Bank of China retaining a leading position in both transaction volume and enterprise participation. The platform’s growth aligns with China’s broader strategic goal of establishing alternative cross-border payment systems that reduce dependence on Western-dominated financial infrastructure.

Despite these advances, the yuan’s share of global foreign exchange reserves remains modest. According to International Monetary Fund data, the currency accounted for just under 2 percent of reserves in the first quarter of 2026. Similarly, the yuan’s usage in global payments via Swift stood at 2.75 percent in May, placing it sixth among currencies worldwide.

Analysts view mBridge as an essential tool for mitigating geopolitical risks and circumventing sanctions-related disruptions inherent in dollar-centric systems. A report by the Japan Research Institute described the project as a strategic response designed to ensure stable yuan-denominated settlements amid evolving global tensions.

Gary Ng, senior economist at Natixis Corporate and Investment Bank, highlighted the significance of expanding transaction types on mBridge, emphasizing that increased use cases would boost the platform’s maturity. He noted that while current transactions tend to be conducted individually, their growing scale points to considerable potential for wider adoption, possibly positioning mBridge as a complementary alternative to Swift and advancing the internationalisation of the yuan.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.