China is preparing to commercially launch mBridge, a blockchain-based cross-border payments platform backed by the central banks of mainland China, Hong Kong, Thailand, the UAE and Saudi Arabia.
A Hong Kong-based entity will be established to oversee the platform’s operations. An exact launch date has not been disclosed, but preparations are described as advanced. Fees are expected to be set at half those of conventional international payment systems, with smaller businesses — for whom existing systems have been costly and difficult to access — among the primary intended users.
mBridge uses blockchain technology to enable direct transactions between central banks using their own digital currencies, removing the dollar as an intermediary and settling foreign exchange transactions in seconds. Commercial banks can participate under the supervision of their respective central banks. The platform has processed approximately RMB 470 billion ($69 billion) in transactions to date.
The project originated as a bilateral initiative between the Hong Kong Monetary Authority and the Bank of Thailand before expanding to its current form in 2021. The Bank for International Settlements, which had been involved from the outset, handed the project to its partners in 2024.
The commercial rollout of mBridge coincides with rising adoption of China’s renminbi cross-border clearing system Cips, which has seen increased usage since the outbreak of the Iran war. mBridge is a separate system designed specifically to expand the use of the digital renminbi, known as the eCNY.
The platform has drawn sustained scrutiny over its potential to enable sanctions evasion. Both the BIS and the People’s Bank of China have stated that mBridge complies with Financial Action Task Force anti-money laundering standards.