UOB joins China's cross-border clearing and settlement system

UOB and its fully owned subsidiary, UOB China, have become direct participants in China’s Cross-border Interbank Payment System (CIPS), as announced by the bank.

This wholesale payment system, sanctioned by the People’s Bank of China, aims to simplify the settlement of trade and investments in renminbi. As of May 2025, the system had 174 direct participants and 1,509 indirect participants. Direct participants can open accounts within CIPS, whereas indirect participants must collaborate with direct participants to manage cross-border renminbi payments and settlements. Before this development, UOB and UOB China operated as indirect participants.

Benefits of direct access

The new direct access allows UOB to provide cross-border renminbi clearing, settlement, and payment services to businesses and financial institutions both within and beyond China. UOB's clients can benefit from real-time gross settlement and remittance, leading to reduced payment and clearing costs. Furthermore, the bank can expand its trading network by connecting CIPS participants globally and managing cross-border renminbi payments and settlements for indirect participants.

According to the company's data, its cross-border renminbi payments and trade settlement flows doubled from 2023 to 2024, and it anticipates continued growth in the use of renminbi for investments, payments, and trade.

UOB representatives stated that they expect direct access to increase the bank's ability to serve regional clients with their renminbi transactions.

In contrast, DBS China was one of the first Singapore-based banks to become a direct participant in CIPS, joining in 2015. This first-mover advantage enabled DBS to provide efficient renminbi payment and settlement solutions to its corporate and financial institution clients, particularly those operating in the China-ASEAN corridors.

In 2024, the transaction volumes related to CIPS increased by over 30 percent compared to 2023. Officials from DBS China anticipate that the demand for more efficient cross-border financial services will continue to rise as economic collaboration between China and ASEAN strengthens.