The Distillery: First Cross-border Payment with Digital Yuan, and Nubank's Acquisition of Banco Porto Real

July 2026

Fintech & Payments

Juniper Research

Analyst House

In this edition:

• First-ever cross-border payment with the digital yuan - ICBC China completes the transaction to ICBC Singapore
  
• Nubank's acquisition of Banco Porto Real secures itself a full banking licence in Brazil, but what does that mean?
• Our Top 10 Fintech Trends Update 2026 highlights key trends that have shaped the industry so far this year
• New Report: Pay.UK published a report on direct debit payments with research support from Juniper Research
• Will Robocop become a reality? - The influence of AI in modern policing becomes a topic of discussion in London
• Nominations for the Future Digital Awards for Identity & Security close next week! Register your entry now

FINTECH & PAYMENTS

China Advances Its Cross-border Payments System with First Digital Yuan Payment to Singapore

On July 24th, the Industrial and Commercial Bank of China (ICBC) and ICBC Singapore made the first live cross-border payment to run through the Cross-border e-CNY Transfer Services (CBETS) settlement platform.

The payment was made by W company, which is a subsidiary of an enterprise trading platform that regularly pays overseas shipping charges. Using CBETS, 10 million digital yuan in import shipping costs to Singapore were settled the same day. This showcases the potential gains for efficiencies in trade routes, where settlement is often a multi-day process involving intermediary banks. By contrast, CBETS is a direct, 24/7 settlement system. It can handle wholesale payments, remittances, trade and investment settlements, as well as QR code payments, tap-to-pay functionalities, and other consumer scenarios.

CBETS supports two partnership pathways. The first is through connecting to the payment systems of monetary authorities; allowing local institutions to connect to it through their existing channels. The second is for financial institutions to directly connect to the platform.

Distilled…

🟣 Rapid Build Out of Cross-border Infrastructure: It was only in January of this year that China signed up 26 financial institutions to its integrated cross-border settlement platform CBETS. This includes overseas branches of major Chinese banks, which creates coverage across Hong Kong, Macau, Singapore, Thailand, the UAE, and Brazil. Now that the first cross-border payment has been sent, the platform is likely to move quickly from pilot to real-world commercial use.

🟣 Supporting Renminbi Internationalisation: Currently, the majority of cross-border payments are denominated in US dollars, which is also the primary reserve currency worldwide. By promoting the digital yuan settlement through CBETS, China is gradually reducing dependence on traditional correspondent banking, while encouraging greater use of its own settlement mechanisms. This supports the country’s long-term goal of increasing the renminbi’s role in global commerce.

🟣 Part of a Larger Cross-border System Strategy: China is investing in more than just CBETS for cross-border payments; one of the most prominent being Project mBridge. This is a blockchain-based settlement platform for central bank digital currencies (CBDCs) of different countries. The central banks of Saudi Arabia, Thailand, the UAE, and Hong Kong are all participating in the mBridge project. China’s investment in this positions it as a driver of progress across the region; shaping next-generation payments infrastructure across Asia and the Middle East.

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FINTECH & PAYMENTS

Nubank’s Banco Porto Real Acquisition

Nu Holdings Ltd (Nubank), a leading digital financial institution in Latin America, has agreed to acquire Banco Porto Real de Investimentos S/A; a move that secures Nubank a full banking licence in Brazil, and brings its largest market into line with new central bank branding rules.

The deal was announced on 20th July 2026, via a share purchase agreement for 100% of Banco Porto Real - a wholesale credit lender that was founded in 1992 in Rio de Janeiro - for a transaction value worth $11 million. Through this acquisition, Nubank has chosen the fastest and most efficient route to adopt a banking licence. The purchase enables Nubank to bypass new naming restrictions and comply with Joint Resolution No.17, as well as with rules set by the central bank and the National Monetary Council (CMN). This permits the retention of the same app, name and services. The transaction remains subject to approval by Brazil’s central bank, and Nubank has stressed that their 115 million Brazilian customers will see no changes to its app, brand, products or services. This move follows Nubank joining the Brazilian Federation of Banks (FEBRABAN) as an associate member in March 2026.

Distilled…

🟣 Regulation is reshaping fintech strategy. As financial regulators tighten expectations around licensing, governance, and supervision, acquiring an existing regulated institution is becoming an increasingly attractive proposition for mature fintechs. Rather than pursuing lengthy licence applications, acquisitions can accelerate regulatory readiness while supporting continued growth.

🟣 The acquisition lays a new foundation for Nubank’s next stage of growth. Rather than materially changing its product portfolio, the banking licence provides Nubank with greater regulatory flexibility, as it scales beyond its 115 million customers in Brazil. It strengthens the group’s ability to expand into additional regulated banking activities over time, deepens relationships with existing customers, and allows it to operate with the institutional credibility of a fully licensed bank.

🟣 Greater convergence between fintechs and traditional banks is expected. As digital banks continue to scale, regulatory expectations are increasingly aligning with those applied to incumbent banks. Competitive differentiation is, therefore, likely to be defined less by licensing advantages and more by product innovation, customer experience, and operational efficiency once firms operate under similar regulatory frameworks.

FINTECH TRENDS

Top 10 Fintech & Payments Trends Update 2026

The fintech and payments industry is constantly evolving. With the influence of AI, concepts such as agentic commerce, or creating smarter financial systems for stablecoin management, have become a reality.

At the end of last year, we forecast 10 trends that we believed would reshape the fintech and payments ecosystem in 2026. Now, halfway through the year, it is becoming evident which of these trends are on their way to being fulfilled.

Find out how successful we have been with our 2026 predictions by downloading our free whitepaper. 

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NEW REPORT

Market Perceptions of Direct Debit

Despite being around for more than half a century, direct debit continues to be a central part of the UK payments’ infrastructure. Direct debits are embedded in most people's economic activities, such as paying bills or business payments, despite newer methods of payment being available.

In fact, in 2025, there were 5 billion direct debits made; representing a new annual high of 1.9% increase from the 4.9 billion in 2024. To understand how direct debits are perceived by different groups, Pay.UK published a report with research support from Juniper Research. Read the free report to deep dive into the direct debit market in the UK.

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TELECOMS & CONNECTIVITY

Robocop: The Future of Law Enforcement

Robocop may no longer be just a science fiction movie. Artificial intelligence is increasingly becoming a reality in modern policing, with London recently finding itself at the centre of the debate, after Mayor Sadiq Khan blocked the Metropolitan Police’s proposed £50 million AI contract with Palantir.

Rather than creating a literal ‘Robocop’, the future of policing is likely to see officers working alongside increasingly sophisticated AI systems that can process millions of datapoints in seconds. This includes analysis of CCTV footage, phone records, financial transactions, and intelligence reports to identify patterns that would otherwise take investigators weeks to uncover. 

As criminals become more technologically advanced, police forces face growing pressure to modernise, but the London case demonstrates that technological capability alone is not enough. The future of AI-powered law enforcement will ultimately depend on striking the right balance between innovation, public safety and transparency, and ethical oversight.

Distilled... 

🟣 AI-powered Policing: The Met planned to use AI to rapidly analyse vast quantities of investigative data; helping officers identify criminal networks, uncover evidence, and accelerate complex investigations.

🟣 Ethics and Governance: The deal was blocked over concerns surrounding procurement, transparency and whether the technology aligned with London’s values; reigniting debate over privacy, accountability, and public trust.

🟣 The Future of Law Enforcement: While AI is unlikely to replace police officers, it is increasingly positioned to become an intelligent investigative partner capable of transforming how crimes are detected and solved.

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FUTURE DIGITAL AWARDS

Closing Soon: Future Digital Awards for Identity & Security 2026

The clock is ticking as the nominations for our inaugural Future Digital Awards for Identity & Security 2026 come to a close next week!

Submit your free entry by Friday, 7th August, for a chance to be recognised as an industry leader across digital identity, cybersecurity, and anti-fraud industries.

Don't miss your chance to establish your business as an industry leader - register today.

ENTER NOW

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