mBridge Platform Achieves Significant Transaction Volume
A new cryptocurrency platform, spearheaded by China, has gained prominence after recording over $55 billion in cross-border transactions. This substantial value was reportedly generated from more than 4,000 transactions involving central banks from Asian nations, including China, Saudi Arabia, and Thailand.
The prototype platform, known as mBridge, is being developed and promoted by central banks in Asian countries such as Saudi Arabia, China, the United Arab Emirates, and Thailand, according to a report by the Atlantic Council. This development signals a concerted effort by these nations to establish payment systems that offer alternatives to the current dollar-dominated global financial infrastructure.
mBridge Transaction Volume Sees Exponential Growth
The mBridge platform has experienced a remarkable 2,500-fold increase in transaction volume since 2022. The report from the Atlantic Council indicates that central banks have successfully executed over 4,000 transactions through the platform. This surge in activity underscores the growing interest and investment in developing alternatives to dollar-dependent global payment systems.
The cumulative transaction volume of $55.5 billion represents a significant milestone, highlighting the platform's rapid expansion and adoption. This growth trajectory suggests a potential shift in international financial dynamics.
Digital Yuan Dominates mBridge Platform
Launched in 2021, the mBridge project is a collaborative initiative involving the Bank for International Settlements (BIS) Innovation Hub and the central banks of China, Hong Kong, Thailand, and the United Arab Emirates. The digital yuan (e-CNY) plays a dominant role within the platform, accounting for 95% of its transaction volume. This makes the e-CNY the world's most extensive live central bank digital currency project.
Data published by the Atlantic Council, sourced from the People's Bank of China, reveals that the e-CNY processed transactions exceeding $2 trillion in 2025. This marks the sixth consecutive year of positive volume growth since the project's inception in 2021. The coalition has recently announced further comprehensive testing of the e-CNY in collaboration with 40 other central commercial banks.
In a significant development announced on December 29, Lu Lei, the Deputy Governor of the People's Bank of China, indicated in an article published by Financial News that commercial banks operating e-CNY wallets will commence paying interest to holders of the digital currency, with the interest rate determined by the amount held.
Strategic Implications of e-CNY Development
Alisha Chhangani, associate director at the Atlantic Council’s GeoEconomics Center, commented on the strategic importance of the e-CNY's development. She stated that the initiative is not aimed at directly displacing the U.S. dollar but rather at establishing parallel settlement systems that reduce dependence on existing dollar-based financial infrastructure. While the project is unlikely to immediately challenge the dollar's global dominance, Chhangani suggested it could gradually erode it over time.
US Stance on CBDCs and Stablecoins Under Trump Administration
In contrast to the developments in Asia, U.S. President Donald Trump signed an executive order on January 23, prohibiting federal agencies from issuing or endorsing central bank digital currencies (CBDCs). The order cited concerns regarding user privacy and financial stability as key reasons for this decision.
President Trump articulated that his administration would implement measures to safeguard U.S. citizens from the potential risks associated with CBDCs. He further emphasized that the issuance of digital currencies by central banks poses a threat to the sovereignty of the United States. Prior to Trump's second term inauguration in January 2025, CBDC development in the U.S. remained in its nascent theoretical stages, largely confined to research efforts.
Conversely, Trump has openly expressed support for privately issued stablecoins and has created a clearer pathway for institutions to engage with the stablecoin market. His administration enacted the GENIUS Act in July of the previous year, which established the first national regulatory framework for stablecoin issuers, overseen by the Treasury and law enforcement agencies. This legislation mandates that stablecoin issuers register as financial institutions under the Bank Secrecy Act.
Following these regulatory advancements, stablecoins have attracted increasing attention from major financial players, including institutions and banks. A previous report highlighted that the stablecoin market reached a new peak valuation of $310.117 billion. Tether's USDT currently leads the stablecoin sector with a market capitalization of $186 billion, followed by Circle's USDC with a market capitalization of $75 billion, according to data from CoinGecko.