China has completed its first cross-border payment to Singapore using the digital yuan, marking a new step in the country’s efforts to expand the use of its central bank digital currency in international trade settlement.

The transaction was processed through China’s Digital Currency Express platform, also known as CBETS. It involved import-related shipping fees totaling approximately 10 million yuan, which were transferred to Singapore on the same day. Cross-border trade payments are a key testing ground for central bank digital currencies because they typically involve multiple banks, currency conversion, and settlement procedures across jurisdictions.

First Digital Yuan Payment Between China and Singapore

The payment was made to W Company through a joint effort by the Shanghai branch of the Industrial and Commercial Bank of China (ICBC) and ICBC Singapore. According to the report, the transaction represents the first digital yuan cross-border payment between China and Singapore.

W Company is described as a subsidiary of a centrally owned trading platform that regularly imports iron ore and pays overseas shipping fees. The use of the digital yuan in this case was presented as an alternative to traditional international transfer methods, with the payment channel designed to shorten transaction times and reduce exchange-related costs.

The digital yuan, also known as e-CNY, is China’s central bank digital currency issued by the People’s Bank of China. China has been testing and expanding its use in retail payments, public services, and cross-border scenarios as part of broader efforts to build digital payment infrastructure. Unlike privately issued cryptocurrencies or stablecoins, a central bank digital currency is issued as a sovereign form of money by a monetary authority.

Digital Yuan Infrastructure Expansion

The transaction is part of China’s broader effort to strengthen the digital yuan’s payment infrastructure for cross-border trade. The Digital Currency Express platform was developed under the guidance of the Digital Currency Research Institute of the People’s Bank of China and was restructured in 2026.

The platform supports both centralized systems and blockchain-based systems, allowing it to work with existing international payment infrastructure. It also enables foreign financial institutions to connect through a Hong Kong access point called “One Point of Access.” Future adoption will depend in part on how banks, corporates, and overseas financial institutions integrate these channels into routine trade settlement workflows.