BIS-MBRIDGE

BIS mBridge multi-CBDC cross-border settlement.

Definition

mBridge architecture: DLT (Distributed Ledger Technology) custom-built based on Hyperledger Besu fork (BIS custom), permissioned blockchain, multi-CBDC sandbox: Digital Yuan e-CNY (PBoC), Digital Hong Kong Dollar e-HKD (HKMA), Digital Baht (BOT), Digital UAE Dirham (CBUAE). Cross-border PvP (Payment versus Payment) Atomic Settlement ~seconds vs days TARGET2/CHIPS. Phases: Phase 1 (2021) initial design 4 founding members, Phase 2 (2022) mBridge Trial Platform pilot, Phase 3 (2023) Pilot Live transactions, Phase 4 (May 2024) production-ready ownership transfer to consortium (BIS Innovation Hub mostly handing off mature project to participating central banks). Observers Saudi Arabia, Russia, France joined. Potential: disrupting SWIFT cross-border correspondent banking ~$190 trillion/year.

Origin

BIS mBridge created February 2021 (first named Inthanon-LionRock 2019 by BOT + HKMA) ; BIS Hong Kong Hub leads ; PBoC China joined 2021 ; CBUAE UAE joined 2021 ; Production-ready transition May 2024.

Example in context

Hong Kong commercial bank transfers $5M USD equivalent via mBridge to Bangkok commercial bank: HKD conversion to Digital HKD e-HKD HKMA, atomic PvP swap with Digital Baht BOT, Bangkok bank transfer ~30 seconds vs 2-3 days SWIFT correspondent banking ~$15 cost.

Related terms

• BIS Agora — multi-CBDC evolution.