China Adds 26 Banks to Cross-Border Digital Yuan Network

The People’s Bank of China on Tuesday added 26 bank branches to its Cross‑border e‑CNY Transfer Services (CBETS), allowing those institutions to process cross‑border settlements in the digital yuan and expanding institutional access to the central bank digital currency.

The newly onboarded participants are Chinese bank branches based in Brazil, Qatar, Thailand, Hong Kong and Macau, together with Standard Chartered’s China unit. CBETS is the PBOC platform that routes cross‑border transfers in e‑CNY, letting participating foreign and domestic banks offer clients settlement services in digital yuan for trade and investment payments.

Lu Jing, chief executive officer of Standard Chartered China, described the development as supporting “an efficient, convenient and compliant cross‑border payment experience” that will help increase the international use of the yuan. The Industrial and Commercial Bank of China said CBETS participants “can leverage the platform’s capabilities to offer clients low‑cost, diversified and secure cross‑border digital payment services, supporting the facilitation of trade and investment and China’s broader push for high‑level financial opening up.”

Separate payment platforms have also recorded rising yuan‑based activity. Mbridge, a cross‑border platform that supports multiple central bank digital currencies, reported more than $55 billion in transaction volume by January, with about 95% of that volume settled in e‑CNY despite the platform’s capacity to process other currencies such as the UAE’s digital dirham. The PBOC’s expansion of CBETS adds another institutional channel for counterparties to clear payments in digital yuan.

Market participants have said digital‑yuan rails can serve as an alternative to traditional correspondent banking networks that are sometimes affected by compliance requirements and risks from secondary sanctions. In April, the yuan accounted for 2.85% of SWIFT‑registered payment volume, placing it sixth among currencies tracked by the messaging system.

The PBOC did not publish the full list of the 26 institutions beyond naming Standard Chartered China and noting branches in the specified jurisdictions. Regulators and banks emphasized that CBETS operates under rules designed to meet cross‑border anti‑money‑laundering and reporting requirements while enabling banks to offer digital‑yuan payment services. Authorities continue to develop technical, legal and operational frameworks to support international use of e‑CNY and to onboard foreign banking units into the payment infrastructure.