Direct Participation in CIPS
According to an announcement by the bank, UOB and its wholly owned subsidiary, UOB China, have joined as direct participants in China’s Cross-border Interbank Payment System (CIPS). Authorized by the People’s Bank of China, this system is designed to streamline trade and investment transactions in renminbi. As of May 2025, CIPS had 174 direct participants and 1,509 indirect participants. Direct participants can establish accounts within the system, whereas indirect participants must collaborate with them for managing cross-border renminbi payments.
Enhanced Services and Cost Reductions
With this direct access, UOB can now offer real-time gross settlement and remittance services, reducing payment and clearing costs. The bank will also be able to expand its trading network by connecting with CIPS participants globally and handling cross-border renminbi payments for indirect participants.
UOB’s data shows that its cross-border renminbi transactions doubled from 2023 to 2024, with a continued growth in the use of renminbi for investments, payments, and trade.
According to bank representatives, this direct access will boost their ability to serve regional clients’ renminbi transaction needs.
In contrast, DBS China was an early adopter among Singapore-based banks when it joined CIPS as a direct participant in 2015. This first-mover advantage allowed DBS to offer efficient renminbi payment and settlement solutions to its corporate and financial institution clients, especially those operating in the China-ASEAN corridors.
In 2024, transaction volumes related to CIPS grew by over 30% compared to 2023. DBS officials expect demand for more efficient cross-border financial services to continue increasing as economic ties between China and ASEAN further strengthen.
