Project mBridge, the cross-border central bank digital currency (CBDC) platform spearheaded by China, has processed over $55.5 billion in transactions by early 2026, according to data cited by Reuters and the Atlantic Council. This marks a monumental increase from the $22 million handled during its pilot phase in 2022.
The platform, which facilitates multi-CBDC settlements, has executed more than 4,000 cross-border transactions. The digital yuan (e-CNY) is the dominant currency on the network, accounting for approximately 95% of the total settlement volume. The initiative involves the central banks of China, Hong Kong, Thailand, the United Arab Emirates, and Saudi Arabia.
The growth of mBridge coincides with explosive domestic adoption of China's e-CNY. The People's Bank of China recently reported that the digital yuan has processed over 3.4 billion transactions worth about $2.4 trillion, representing an increase of more than 800% since 2023. Furthermore, a new framework effective January 1, 2026, allows commercial banks to pay interest on digital yuan holdings, transitioning it from "digital cash" to a "digital deposit currency."
The Bank for International Settlements (BIS) unexpectedly exited the mBridge project in October 2024. BIS General Manager Agustín Carstens described the departure as a "graduation" and sought to distance the platform from speculation that it could be used by BRICS nations to circumvent sanctions, stating categorically that "mBridge is not the BRICS bridge." The BIS is now focused on Project Agorá, a rival initiative involving seven Western central banks, including the Federal Reserve Bank of New York, the Bank of England, and the Bank of Japan, which recently announced it was stepping up testing.
Analysts view mBridge's success as a significant step in building alternatives to dollar-dependent payment systems. Alisha Chhangani of the Atlantic Council noted, "Project mBridge is unlikely to challenge dollar dominance directly, but it may incrementally erode it," suggesting a subtle reshaping of global currency hierarchies. The platform's expansion is seen as boosting financial integration between Asia and the Middle East, fostering innovative cross-border settlements without directly impacting traditional cryptocurrencies like Bitcoin or Ethereum.
