China Adds 26 Banks to Digital Yuan Cross-Border Network

China's central bank has brought 26 domestic and foreign institutions onto a platform that lets them settle cross-border payments in digital yuan, the latest push to build a yuan-based payment rail outside the traditional SWIFT system.

The institutions are Chinese bank branches in Brazil, Qatar, Thailand, Hong Kong, and Macau, plus Standard Chartered's China branch. They join the Cross-border e-CNY Transfer Services (CBETS) platform, the People's Bank of China said Tuesday.

Lu Jing, CEO of Standard Chartered China, called the milestone relevant to "an efficient, convenient and compliant cross-border payment experience" that would boost the yuan's international use. Industrial and Commercial Bank of China said CBETS participants can offer clients "low-cost, diversified and secure cross-border digital payment services" supporting trade and investment.

The move gives institutions dealing with Chinese counterparties an alternative to SWIFT, which can carry compliance burdens and secondary sanctions risk. The yuan's share of SWIFT traffic has not been rising. In April, it dropped to sixth place among global payment currencies, handling 2.85% of registered volume.

Separately, Mbridge – a platform that also settles in digital yuan – registered over $55 billion in volume by January, with 95% of that transacted in digital yuan. Mbridge, now under Chinese leadership, is preparing a commercial rollout through a Hong Kong-based entity, according to local reports.

The CBETS expansion adds a second yuan-denominated settlement channel for cross-border trade, giving banks and their clients a choice between the two networks.