Saudi mBridge & Digital Riyal Pilot 2025: Transforming Global Oil Settlement & Trade
Khushi V Rangdhol Aug 20, 2025 23:49
Saudi Arabia's Central Bank is piloting a digital riyal through Project mBridge, enabling faster, cheaper oil settlements and reducing reliance on the US dollar.
Keyword Takeaways
- Saudi Arabia’s Central Bank (SAMA) is piloting a digital riyal (“oil-linked” CBDC) as part of Project mBridge, a global blockchain initiative for cross-border trade and payments.
- mBridge enables instant, transparent oil and commodity settlements—potentially reducing reliance on the US dollar in energy trade.
- The project, involving Saudi, China, UAE, and others, has reached a “Minimum Viable Product” allowing live cross-border CBDC transactions for banks and corporates.
- Saudi’s digital currency plans align with Vision 2030, and could reshape remittances, trade finance, and Gulf economic integration.
The mBridge Project: Rewiring Cross-Border Payments
Project mBridge is a multinational effort led by the Bank for International Settlements (BIS) and major Asian and Gulf central banks—including China, Hong Kong, UAE, and, in 2025, Saudi Arabia. Its mission is to solve the pain points of old correspondent banking: slow, costly settlements and heavy reliance on the US dollar.
By using wholesale CBDCs and a purpose-built distributed ledger (the mBridge ledger), participating countries can enable instant, atomic cross-border payments in their own domestic currencies. This opens the door to real-time oil settlement, as Saudi Arabia and China can now exchange riyals and yuan directly for energy trades. Pilot transactions have already moved beyond just tests—commercial banks are actively using MVP to settle cross-border and commodity payments.
Why Saudi’s Oil-Linked Digital Currency Matters
The arrival of the Saudi riyal to mBridge breaks new ground. Saudi is one of the world’s largest oil exporters, long settling contracts in US dollars. Now, with mBridge, it can experiment with direct digital settlements in riyal and yuan, bypassing traditional dollar rails. This shift could make oil exports more efficient, reduce fees, and potentially increase currency flexibility in energy markets.
The project also sets up the framework for a broader “digital Gulf” future—a common payment infrastructure for rapid trade and investment flows throughout the region. Private sector banks and fintechs are already planning mBridge-based payment apps and trade finance tools, inspired by the efficiency and transparency of the shared ledger.
Implications for Remittances, Trade, and the Dollar
For Saudi Arabia, which is highly dependent on foreign remittance flows and commodity exports, digital riyal use in mBridge unlocks:
- Faster and cheaper international transfers, especially for oil, gas, and large-value cross-border invoices.
- New financial products built on CBDCs and smart contracts, such as programmable trade settlements.
- More competitive and attractive options for global partners, signaling a step toward Gulf monetary integration.
mBridge’s MVP compatibility with the Ethereum Virtual Machine also opens doors for blockchain developers everywhere. With the US, IMF, and ECB observing, its success could reshape not just Gulf trade, but the global payment architecture for energy settlement.
Sources:
Arab News, Reuters, Blockchain.News, KapronAsia, HoganLovells DAB Hub.
Image source: Shutterstock
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