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In early 2026, the expanded BRICS+ bloc launched the BRICS Bridge, a blockchain-based cross-border payment system using central bank digital currencies (CBDCs) to bypass SWIFT. This operational milestone marks the most concrete challenge to the Bretton Woods-era financial architecture in decades, as the US dollar's share of global reserves falls below 57%. With near-instant settlement and drastically lower costs, the BRICS Bridge is accelerating a coordinated de-dollarization campaign that demands strategic attention from investors, policymakers, and global businesses.
What Is the BRICS Bridge?
The BRICS Bridge is a permissioned blockchain-based payment system anchored by the UNIT digital settlement token, backed 40% by gold and 60% by a basket of five BRICS currencies (yuan, rupee, ruble, real, rand). Built on a modified Cardano blockchain, the system enables near-instant cross-border settlements at a fraction of SWIFT costs. According to the BIS, the precursor Project mBridge had already processed over $55.5 billion in transactions by late 2025, with 95% in digital yuan. After the BIS withdrew in 2025, BRICS+ nations continued independently, launching the full BRICS Bridge in early 2026. The BRICS Bridge CBDC system now processes a growing share of intra-bloc trade, which has reached 67% settled in local currencies, up from under 20% a decade ago.
Record Gold Purchases Back the New Architecture
Central banks globally purchased a record 1,100+ tons of gold in 2025, with BRICS nations alone buying 663 tonnes worth approximately $91 billion in the first nine months. By Q3 2025, the BRICS bloc held 6,026 tonnes collectively, led by Russia (2,336 tonnes) and China (2,298 tonnes). For comparison, the United States holds 8,133 tonnes. The accelerated gold buying, which began in 2022 following sanctions on Russia, serves to back the UNIT token and reduce exposure to dollar-denominated assets. Gold has overtaken US Treasury holdings at $4 trillion, signaling a structural shift in reserve composition. The record gold purchases by BRICS central banks underscore the bloc's commitment to building a gold-backed alternative to the dollar system.
Energy Settlements in Yuan and Rupees
Saudi Arabia now settles approximately 22% of its crude exports to China in yuan, while the UAE has begun pricing oil sales in rupees and yuan. Yuan-denominated energy trade now approaches 24% of Brent crude volumes. These developments directly challenge the petrodollar system that has underpinned dollar dominance since the 1970s. China's CIPS payment system processed ¥180 trillion ($24.5 trillion) in 2025, up 43% year-over-year, providing an alternative to SWIFT for energy and commodity settlements. The energy settlements in yuan and rupees are reshaping global oil markets and reducing dollar demand.
Is the Dollar Being Dethroned?
The US dollar's share of global foreign exchange reserves fell to 56.3% in early 2026, the lowest since 1995, according to IMF COFER data. This extends eight consecutive quarters of decline from 71% in 1999. However, the dollar still dominates forex trading at 88% of all transactions. Most experts view the transition as a gradual shift toward a multipolar system rather than an imminent collapse. The dollar remains first among equals, but its monopoly on global trade settlement is eroding. The declining USD reserve share implications include potentially higher US borrowing costs—estimated at 50-100 basis points over the next decade—and reduced effectiveness of sanctions policy.
Strategic Consequences for Global Trade and Sanctions
The BRICS Bridge directly undermines the SWIFT-based sanctions regime. By enabling near-instant settlement outside the dollar system, it allows sanctioned nations like Russia and Iran to continue trading. This reduces the coercive power of US financial sanctions, which have been a cornerstone of American foreign policy. For global businesses, the emergence of parallel payment systems increases complexity but also offers opportunities to reduce currency risk and transaction costs. The multipolar monetary system consequences for global trade include fragmented settlement networks and the need for multi-currency treasury management.
Expert Perspectives
The BRICS Bridge is not an overnight revolution, but it is a concrete institutional step toward a multipolar monetary order. De-dollarization has moved from rhetoric to operational reality, says Dr. Elena Kuznetsova, a geopolitical economist at the Moscow School of Economics. The dollar's dominance is being chipped away, but it will remain the primary reserve currency for at least another decade. What we are seeing is the emergence of a more fragmented system where the yuan, euro, and gold share the stage, adds Mark Carney, former Governor of the Bank of England.
Frequently Asked Questions
What is the BRICS Bridge?
The BRICS Bridge is a blockchain-based cross-border payment system using CBDCs to bypass SWIFT, launched in early 2026 by BRICS+ nations. It enables near-instant, low-cost settlements using the UNIT digital token backed by gold and a basket of member currencies.
How much gold did BRICS central banks buy in 2025?
BRICS central banks purchased 663 tonnes of gold in the first nine months of 2025, contributing to a global record of over 1,100 tonnes for the full year. The bloc's total gold holdings reached 6,026 tonnes.
Is the US dollar losing its reserve currency status?
The dollar's share of global reserves fell below 57% in early 2026, the lowest since 1995. While still dominant, the trend points toward a multipolar system where the dollar becomes first among equals rather than the sole hegemon.
How does the BRICS Bridge affect sanctions?
By providing an alternative to SWIFT, the BRICS Bridge allows sanctioned nations to continue trading outside the dollar system, reducing the effectiveness of US financial sanctions.
What is the UNIT digital token?
The UNIT is a gold-backed (40%) digital settlement token tied to a basket of five BRICS currencies (yuan, rupee, ruble, real, rand), used for energy and commodity trades within the BRICS Bridge system.
Conclusion: A Multipolar Future
The year 2026 marks a turning point in global monetary history. The BRICS Bridge, record gold purchases, and energy settlements in non-dollar currencies have created the architecture for a multipolar system. While the dollar is not being dethroned overnight, its monopoly is ending. Investors, policymakers, and businesses must prepare for a world where multiple reserve currencies and payment systems coexist, with profound implications for trade, sanctions, and financial stability.
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