Digital Yuan Cross-Border Payment Service CBETS LIFT Launched to Tackle Three Trade Pain Points

September 18 — The cross-border trade finance sector has received a significant boost, as the digital yuan (e-CNY) system has upgraded its systematic service capabilities in cross-border trade settlement, investment, and financing.

Technology-Neutral Approach Supports Bank-Enterprise Connectivity and Ecosystem Collaboration

According to reports, CBETS LIFT is a new comprehensive professional service for cross-border payments using the digital yuan.

Specifically, CBETS LIFT leverages CBETS as its financial services foundation, connects with regional trade digitalization service platforms, and integrates electronic shipping documentation.

The Digital Yuan Operations Management Center stated that CBETS LIFT adheres to a technology-neutral approach, supporting both on-chain and off-chain integration without mandating specific technical pathways. This open architecture provides support for bank-enterprise connectivity and ecosystem collaboration.

Addressing Three Major Challenges in Cross-Border Trade

CBETS LIFT is expected to help resolve three key challenges in cross-border trade.

Challenge 1: Fragmentation of Documents, Information, and Funds

To address the issue of fragmented documentation, information, and capital flows, the digital yuan's smart contracts automatically execute contract terms based on pre-agreed rules. This programmatically integrates financing and payment logic, enabling:

• Targeted disbursement of financing
• Post-loan management
• Automatic transfer of sales proceeds

These features reduce compliance costs and transaction friction. Additionally, CBETS LIFT introduces an innovative privacy mechanism that supports the sharing of trusted data—such as customs, tax, and foreign exchange records—on the blockchain. It also supports the introduction of intelligent agents to assist financial institutions in efficiently verifying trade authenticity, enabling real-time document verification and forward-looking risk alerts. The system also supports blockchain-based electronic shipping and trade documents.

Challenge 2: Fragmented Supply-Demand Resources and High Matching Costs

Small and medium-sized foreign trade enterprises often face difficulties in acquiring customers, accessing platforms, and obtaining sufficient financial services.

CBETS LIFT's solution involves coordinated collaboration among:

• Central bank-level financial infrastructure (CBETS)
• Financial institutions
• Market-side trade digitalization service platforms

Together, they build an interconnected, open, and inclusive ecosystem.

Challenge 3: Limited Supply of Offshore RMB and Supporting Financial Products

After cross-border funds leave the country, enterprises often face unclear fund flows, long repayment chains, and high uncertainty. This results in practical difficulties such as:

• Inability to pay smoothly in RMB
• Difficulty retaining RMB
• Challenges in repatriating RMB

CBETS LIFT supports local currency settlement in cross-border trade, helping enterprises reduce exchange costs and currency risks. Furthermore, it has made significant efforts to improve the full-chain experience for overseas entities in obtaining, holding, and using RMB, aiming to create a closed loop:

Domestic financing outflow → Offshore settlement and payment → Offshore market investment → Repatriation to domestic market

On one hand, CBETS LIFT provides digital yuan trade financing services to overseas enterprises, alleviating liquidity shortages for their procurement from China. Lending banks can use smart contracts for automated post-loan risk management. On the other hand, after receiving digital yuan, overseas enterprises can either continue purchasing domestic goods and services or choose supporting RMB investment and liquidity management products offered by banks. Additionally, the system can connect with trading and custody financial infrastructure, forming a closed-loop cross-border investment and financing system that supports high-level opening-up.

Ecosystem Collaboration to Support Regional Trade Development

According to reports, CBETS LIFT has already completed multiple real transaction verifications, covering both import and export scenarios. It serves the supply chain operations of large enterprises while also exploring inclusive and viable pathways for smaller market participants, forming replicable and scalable use cases.

For example, in Guangxi, Guangxi Huike used the Guangxi Trade Digitalization Service Platform to purchase electronic components from its overseas procurement arm. Agricultural Bank of China facilitated the transaction.

The Digital Yuan Operations Management Center stated that trade digitalization service platforms in Shanghai, Guangxi, and Fujian have already taken the lead in connecting to CBETS LIFT, achieving coordinated collaboration. Going forward, CBETS LIFT will continue to expand its ecosystem, inviting more regional trade platforms, financial institutions, and industry players to participate in building a standardized, replicable, and scalable new model for cross-border trade financial services.

(Source: Shanghai Securities News · China Securities Journal)