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China bank processes over $1.7B cross-border trades on mBridge platform
The Bank of China completed one 11.3 billion yuan outbound transfer with same-day, full-value delivery and a second Hong Kong dollar inbound transfer that cleared in under 60 minutes.
A leading Chinese bank has processed the largest cross-border transactions yet via mBridge, a multilateral CBDC platform backed by central banks, according to SCMP Economy. The milestone is tied to Beijing’s push to expand the international use of the yuan and build alternative cross-border clearing rails.
SCMP Economy reports that Bank of China’s Shenzhen branch executed an outbound transfer of 11.3 billion yuan, valued at more than US$1.7 billion, in June, delivering same-day, full-value funds to a corporate client through the network. The network includes central banks from mainland China, Hong Kong, Macau, Saudi Arabia, United Arab Emirates, and Thailand.
In July, the lender’s Fujian branch completed a separate inbound transaction in Hong Kong dollars, with funds moving from an overseas sender to an onshore corporate account in under 60 minutes, SCMP Economy said. The bank also described the July deal as setting a record for the largest transaction on the platform since its inception, without disclosing the amount.
The report adds that mBridge uses blockchain technology to enable faster settlement through CBDCs, aiming to reduce the fees and settlement delays associated with traditional payment channels that depend on chains of intermediary banks.