TheCapTable
Subscribe

Stories

About Us

Home

Stories

Explore

Sign In

Stories

About Us

Fintech

CBDC corridors: How India can redefine global trade with fintech at the helm

thumbnail
June 26, 2025  |  7 Min Read
India's fintechs could unlock billions in global trade by building digital currency corridors, cutting bank fees and creating faster cross-border payments worldwide.

Central Bank Digital Currencies [CBDCs] are here—wholesale and retail, piloted and progressing, awaiting a use case in the wholesale banking space. Unfortunately, their biggest use is being blocked by the very banks that need to popularise them. Especially in the case of global trade settlement, foreign banks hold a dominant position. Central banks need to think beyond the banks and engage with fintechs to reduce the cost of international trade as well as embed CBDC firmly into every global transaction.  

The real promise of CBDCs does not lie in the retail end; what they offer is real-time, peer-to-peer settlement in sovereign money, without the need for layers of intermediaries. This not only reduces the time it takes to complete cross-border payments but also significantly reduces the transaction costs, foreign exchange risk, and compliance complexity that currently ails the global trade transaction system.

Wholesale CBDCs, in particular, hold transformative potential for global trade. Designed for use by regulated financial institutions, they enable the instant clearing and settlement of high-value payments and securities, significantly reducing collateral requirements and unlocking liquidity previously trapped in pre-funding arrangements. 

This is a premium article and available only to subscribers.

Already a subscriber? Sign In

What's your right fit?

Be the smartest person in the room. Choose the plan that works for you and join our exclusive subscriber community.

premium_articles

Premium Articles

4 articles every week

archives

Archives

>3 years of archives

archives

Org. Chart

1 every week

newsletter

Newsletter

4 every week

gifting_credits

Gifting Credits

5 premium articles every month

session

Session

3 screens concurrently

1,999 / Year

3,999

Subscribe Now

Have a coupon code?

Join our community of 100,000+ top executives, VCs, entrepreneurs, and brightest student minds

company1
company2
company3
company4
company5
company6
company7
company8
company9
SPJIMR Logo
company1
company2
company3
company4
company5
company6
company7
company8
company9
SPJIMR Logo
Trusted by the best
Headshot of Karthik Reddy from Blume Ventures
Karthik Reddy

Blume Ventures

quote

The CapTable brings a refreshing set of insights for us at the Blume team, highlighting stories that bring together the underlying business and founders with that of investors' journeys with these startups. It's an important perspective that very few bring to startup ecosystem enthusiasts.

Latest Articles

subscribe_graffiti

Convinced that The Captable stories
and insights will give you the edge?

Subscribe Now

If you want to see more, Sign Up for access to our Crux newsletter and several free articles

Sign Up Now