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    Home»Editor's Choice»UAE boosts digital trade as mBridge volumes top $55b
    Editor's Choice

    UAE boosts digital trade as mBridge volumes top $55b

    Dr Issac PJBy Dr Issac PJJanuary 19, 2026No Comments4 Mins Read
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    UAE boosts digital trade as mBridge volumes top $55b
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    The rapid rise of the mBridge platform is reshaping how cross-border payments are executed, with transaction volumes surpassing $55 billion and positioning the UAE at the centre of a new generation of central bank digital currency (CBDC)-based settlement infrastructure.

    Developed as a multi-CBDC bridge connecting central banks in Asia and the Middle East, mBridge enables real-time international payments using sovereign digital currencies, bypassing traditional correspondent banking networks. The platform is jointly used by the People’s Bank of China, the Hong Kong Monetary Authority, the Bank of Thailand, the Central Bank of the UAE and the Saudi Central Bank, with more than 20 commercial banks participating.

    Data compiled by the Atlantic Council shows that more than 4,000 cross-border transactions have already been processed through mBridge, with settlements occurring in seconds and at near-zero transaction costs. Of the total value settled so far, about 95 per cent has been conducted in China’s digital yuan, highlighting the scale of early adoption and the growing use of digital currencies for wholesale payments.

    For the UAE, the platform’s expansion represents more than a technology upgrade. It signals a strategic shift toward faster, cheaper and more transparent settlement infrastructure aligned with the country’s ambition to become a global financial and trade hub. In November 2025, the UAE formally went live on mBridge with a cross-border payment to China, executed by Vice President and Deputy Prime Minister Sheikh Mansour bin Zayed Al Nahyan, who also chairs the Central Bank of the UAE. The launch marked the platform’s transition from pilot testing into live production use.

    The UAE had earlier completed a landmark transaction in January 2024, when Sheikh Mansour initiated the first cross-border transfer of the Digital Dirham to China, sending Dh50 million via mBridge. That transaction demonstrated the operational readiness of the platform and its ability to handle large-value settlements in central bank money.

    The Central Bank of the UAE expects usage of mBridge to rise steadily as more licensed financial institutions are onboarded and cross-border payment corridors expand. The platform forms a core pillar of the central bank’s Financial Infrastructure Transformation programme, which aims to modernise payment rails, enhance financial inclusion and strengthen the country’s competitiveness as a regional clearing hub.

    Unlike conventional cross-border transfers that rely on correspondent banks and messaging systems such as SWIFT, mBridge allows banks to transact directly with one another using tokenised central bank money. This eliminates multiple intermediaries, reduces settlement risk and shortens processing times from days to seconds. Smart contracts embedded in the platform also automate compliance checks, foreign exchange conversion and settlement finality.

    Market analysts say the platform’s growing transaction volumes point to a broader transformation of global payment infrastructure. While the digital yuan currently dominates mBridge settlement flows, the participation of the UAE and other jurisdictions is expanding the platform’s multi-currency functionality and laying the groundwork for wider adoption of CBDC-based trade settlement.

    According to analysts, data from the People’s Bank of China shows that the digital yuan has already processed around 3.4 billion domestic and cross-border transactions worth approximately $2.4 trillion. The scale of these volumes suggests that China’s CBDC is moving beyond pilot programmes into practical commercial use, with mBridge providing a key international settlement channel.

    The Atlantic Council notes that 136 countries are now exploring CBDCs in various stages of development, testing or rollout. While only a handful of nations have fully launched retail digital currencies, the rapid progress of wholesale platforms such as mBridge is drawing attention from central banks seeking alternatives to legacy payment systems.

    For the UAE, participation in mBridge strengthens its role as a bridge between Asian and Middle Eastern financial markets. As trade flows between the UAE, China and other Asian economies continue to expand, faster settlement and lower transaction costs could deliver tangible benefits for exporters, importers and financial institutions.

    Although analysts say mBridge is unlikely to challenge the dominance of the US dollar in global finance in the near term, its growing popularity signals a gradual shift toward more diversified, technology-driven settlement networks.  

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    Dr Issac PJ

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