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In early 2026, under India's BRICS chairship, the mBridge blockchain-based cross-border payment platform reached full operational status, enabling real-time central bank digital currency (CBDC) settlements that bypass SWIFT and the US dollar. Having already processed over $55.5 billion in transactions across digital yuan, Hong Kong dollar, Thai baht, UAE dirham, and Saudi riyal, the system reduces settlement times from days to seconds at near-zero cost. This article analyzes how mBridge accelerates the evolution of a multipolar financial system, the implications for dollar hegemony as reserves fall to 56%, and the strategic calculus for Western policymakers facing a parallel payments architecture.
What Is mBridge and How Does It Work?
mBridge — formally known as the Multiple CBDC Bridge — is a blockchain-based platform developed jointly by the Hong Kong Monetary Authority, the Bank of Thailand, the Central Bank of the United Arab Emirates, the Digital Currency Research Institute of the People's Bank of China, and the BIS Innovation Hub Hong Kong Centre. The Saudi Central Bank joined in June 2024. The platform uses a distributed ledger called the mBridge Ledger to facilitate real-time, peer-to-peer cross-border payments and foreign exchange transactions using CBDCs, eliminating the need for correspondent banking intermediaries.
Unlike traditional SWIFT-based transfers that can take three to five days and cost between 6% and 8% for cross-border remittances, mBridge settles transactions in seconds at near-zero cost. The system is designed to comply with jurisdiction-specific regulations while maintaining a unified ledger, offering atomic finality and eliminating counterparty risk. By early 2026, the platform had processed over $55.5 billion in transactions — a staggering 2,500-fold increase from the $22 million handled during its pilot phase in 2022.
The BIS Withdrawal and BRICS Independence
A pivotal moment came in late 2024 when the Bank for International Settlements (BIS) decided to withdraw from the mBridge project. BIS CEO Agustín Carstens stated that mBridge "was not created to serve BRICS" and could not be used to violate sanctions. However, the participating nations — China, Hong Kong, Thailand, the UAE, and Saudi Arabia — continued independently, using key technology proposed by China. The BIS exit removed a layer of Western institutional oversight, allowing BRICS to accelerate the platform's development toward a full-scale operational system.
Under India's 2026 chairship, the expanded 11-member BRICS bloc (including Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the UAE) has formally proposed linking all member CBDCs — including India's e-Rupee, Brazil's Drex, Russia's digital ruble, and South Africa's digital rand — into a unified settlement framework. This interoperability layer is the most tangible test yet of whether a non-dollar settlement system can scale globally.
De-Dollarization in Action: Numbers Tell the Story
The rise of mBridge coincides with accelerating de-dollarization trends. The US dollar's share of global central bank reserves fell to 56.3% in 2025 — a 30-year low — down from 71% in 2000. BRICS central banks have accumulated over 2,100 tonnes of gold since 2022, with a record 1,237 tonnes purchased in 2025 alone. Foreign holdings of US Treasuries declined from $7.2 trillion to $6.5 trillion over the same period.
Intra-BRICS trade settled in local currencies has reached 67%, up from approximately 30% in 2020. Saudi Arabia now settles 22% of its crude exports to China in yuan, marking a significant erosion of the petrodollar system. The BRICS de-dollarization strategy is no longer theoretical — it is operational.
mBridge Transaction Volume Growth
- 2022 (Pilot): $22 million
- 2024 (MVP): ~$5 billion
- Early 2026 (Full ops): $55.5 billion
The digital yuan dominates approximately 95% of mBridge transaction volume, raising concerns about Chinese dominance within the bloc. India has pushed for balanced multi-currency interoperability to prevent the platform from becoming a yuan-only settlement rail.
Strategic Implications for Western Policymakers
The operationalization of mBridge presents a direct challenge to the post-1945 Bretton Woods financial architecture. For Western policymakers, the platform represents a parallel payments infrastructure that could undermine sanctions enforcement. The US dollar hegemony and sanctions rely on the fact that nearly all international payments flow through SWIFT and dollar-based correspondent banking. mBridge offers an alternative routing mechanism that is immune to US and EU sanctions.
McKinsey's 2026 trade update confirms global trade fragmentation along geopolitical lines, with the US-China trade corridor shrinking 30% and over $165 billion in trade redirected. The global financial fragmentation 2026 trend is accelerating as BRICS+ nations build sanction-proof financial architecture for commodity trade.
CommandEleven's intelligence assessment forecasts a "bifurcation of global capital" by 2030, with BRICS members projected to grow at 3.7% annually versus the G7's 1.1%. This structural growth differential, combined with the operationalization of mBridge, suggests that the dollar's dominance will continue to erode, though it remains the primary currency for global forex transactions at 88%.
Internal BRICS Challenges and Risks
Despite its success, mBridge faces significant internal hurdles. The most prominent is India-China rivalry over platform governance. While China's digital yuan dominates transaction volume, India has insisted on a multi-currency framework that prevents any single nation from controlling the settlement infrastructure. The India China BRICS rivalry could slow further integration.
Additionally, capacity disparities among BRICS members pose challenges. Not all member central banks have mature CBDC systems ready for cross-border interoperability. Sanctions compliance fragmentation — where some members face Western sanctions while others do not — creates legal complexities for the unified ledger.
Expert Perspectives
Analysts at the Atlantic Council note that mBridge represents "the most tangible de-dollarization development yet," but caution that the dollar's network effects and liquidity advantages will not vanish overnight. The platform's current $55.5 billion in transactions, while impressive, remains a fraction of the $2 trillion that flows through SWIFT daily.
However, the trajectory is clear. As one geopolitical risk analyst put it: "We are witnessing the most significant transformation of the global financial system since Bretton Woods. The question is no longer whether a multipolar system will emerge, but how quickly and how chaotically."
Frequently Asked Questions
What is the mBridge platform?
mBridge is a blockchain-based cross-border payment platform that enables real-time settlements using central bank digital currencies (CBDCs), bypassing traditional correspondent banking and SWIFT.
How much has mBridge processed in transactions?
By early 2026, mBridge had processed over $55.5 billion in transactions, up from $22 million during its 2022 pilot phase.
Which currencies are supported on mBridge?
The platform currently supports digital yuan, Hong Kong dollar, Thai baht, UAE dirham, and Saudi riyal. India's digital rupee is expected to be integrated later in 2026.
Why did the BIS withdraw from mBridge?
The Bank for International Settlements withdrew in late 2024 over concerns that the technology could be used to circumvent sanctions. Participating nations continued development independently.
Is mBridge a threat to the US dollar?
While mBridge accelerates de-dollarization trends, the dollar remains dominant in global forex transactions. However, the platform represents a significant step toward a multipolar financial system.
Conclusion: A New Financial Geography
The mBridge platform's full operational launch under India's 2026 BRICS chairship marks a watershed moment in global finance. What began as a technical pilot among four central banks has become a functioning parallel payments infrastructure processing tens of billions of dollars. While internal rivalries and capacity gaps remain, the direction of travel is unmistakable: the world is moving toward a multipolar financial system where no single currency or payment network holds a monopoly. For Western policymakers, the challenge is no longer hypothetical — mBridge is live, and the financial geography of the 21st century is being rewritten in real time.
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