China’s push to modernize cross-border payments is gaining momentum, as a digital currency platform backed by Beijing quietly scales up transaction volumes and attracts growing attention from global policymakers.
New analysis from the Atlantic Council shows that transactions on the mBridge platform have now surpassed $55 billion in cumulative value, as reported by Reuters. The system, still technically in a pilot stage, connects central banks from China, Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia, and has already processed more than 4,000 international payments.
Key Тakeaways
Transactions on China-led mBridge have surpassed $55 billion, signaling rapid adoption
The digital yuan dominates activity, supported by incentives such as upcoming interest payments
mBridge aims to reduce reliance on dollar-based systems rather than replace them directly
Global policymakers are closely watching as trade and commodity settlements expand
The pace of growth suggests that alternative settlement systems are moving beyond theory, even as the dollar remains dominant in global finance.
Digital Yuan Drives Most of the Growth
A striking feature of mBridge’s expansion is how heavily it relies on China’s digital currency. The digital yuan, issued by the People’s Bank of China, accounts for nearly all transaction volume flowing through the platform.
That trend aligns with the rapid domestic rollout of the e-CNY. Official figures indicate that trillions of yuan have already moved through China’s digital currency system, with transaction volumes jumping sharply compared with last year. Beijing has also signaled further incentives, with state media reporting that digital yuan balances will begin earning interest in 2026, a move widely seen as an effort to encourage broader usage.
Parallel Rails, Not a Dollar Replacement
Analysts caution that mBridge is not designed to dethrone the US dollar outright. Instead, it represents a longer-term strategy to reduce reliance on existing dollar-based payment networks by offering alternative settlement channels.
According to Atlantic Council researcher Alisha Chhangani, the platform reflects a gradual approach to internationalizing the yuan through digital infrastructure rather than confrontation. In this model, dollar dominance is not directly challenged, but slowly diluted as more trade flows find alternative routes.
Global Scrutiny Intensifies
The project’s progress has not gone unnoticed. Oversight of mBridge originally involved the Bank for International Settlements, which unexpectedly withdrew from the initiative in late 2024. Since then, the BIS has redirected its efforts toward a separate digital currency project involving several major Western central banks.
While that rival initiative has recently expanded testing, mBridge remains ahead in terms of live transaction activity. Real-world use is already emerging, including a government-level transaction in the United Arab Emirates using a wholesale digital dirham on the platform.
Looking forward, analysts expect mBridge to focus increasingly on trade settlements, particularly in energy and commodity markets where China already plays a dominant commercial role. If adoption continues, the platform could become a niche but influential part of the global payments system.
