What are the business models for CBDC infrastructure?

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Central Bank Digital Currencies (CBDCs) are creating a massive infrastructure opportunity for private companies, with the market expected to reach $3.0 billion by 2035.

Unlike traditional payment systems controlled entirely by banks, CBDC infrastructure operates on a hybrid model where central banks handle core functions while private companies provide crucial services like digital wallets, customer interfaces, and cross-border connectivity. This creates multiple revenue streams through transaction fees, infrastructure-as-a-service offerings, and specialized consulting.

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What exactly are the core components of a CBDC infrastructure that companies or startups can build or monetize?

CBDC infrastructure consists of four distinct layers, each offering specific monetization opportunities for private companies.

The Platform Layer handles the fundamental settlement operations where companies can provide distributed ledger technology solutions using blockchain or alternative consensus mechanisms, centralized database systems with quantum ledger capabilities for immutability, or hybrid architectures that combine centralized control with distributed verification. This layer generates revenue through platform licensing, infrastructure-as-a-service contracts, and technical consulting.

The Asset Layer focuses on token lifecycle management where businesses can offer token design and management services for unit characteristics and production, supply management systems for controlling CBDC issuance and circulation, and digital asset custody with advanced security solutions. Revenue streams include licensing fees for token management software and ongoing security service subscriptions.

The Service Layer presents the highest-value opportunities through programmable payments infrastructure that enables smart contracts and conditional transactions, cross-border payment coordination systems that connect multiple CBDC networks, and comprehensive API development with integration services for existing financial systems. Companies typically monetize through transaction fees, API licensing, and specialized integration consulting.

The Access Layer offers the most commercially viable entry point for private sector participation, encompassing digital wallet development and management, user interface design with customer experience optimization, and KYC/AML compliance services with automated customer onboarding. This layer generates revenue primarily through transaction fees on payments, premium feature subscriptions, and compliance service contracts.

Which parts of the CBDC value chain are currently being outsourced or opened to private sector participation?

Central banks are adopting a hybrid two-tier model where they retain core monetary functions while outsourcing customer-facing operations and technical infrastructure to private companies.

Central banks maintain direct control over core ledger operations and CBDC issuance, monetary policy implementation, and overall system governance and oversight. However, they are actively outsourcing customer onboarding and KYC/AML compliance processing, which requires specialized expertise and significant operational capacity that most central banks prefer not to develop internally.

Digital wallet provision and user experience design represent the largest outsourcing opportunity, with central banks recognizing that private companies have superior capabilities in creating consumer-friendly interfaces and managing customer relationships. Payment processing and transaction routing are also being delegated to Payment Interface Providers (PIPs) or Access Enablers (AEs) that handle transaction flow without ever holding customer funds.

Customer service and technical support operations are consistently outsourced because central banks lack the infrastructure to provide 24/7 consumer support across multiple channels. Merchant acceptance infrastructure and point-of-sale integration require extensive retail networks that only private companies possess, making this another key outsourcing area.

Cross-border connectivity and interoperability solutions represent emerging outsourcing opportunities as central banks seek to connect their CBDCs with international networks without developing complex international partnerships directly.

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What are the current business models being used by companies supporting CBDC development or deployment?

Four primary business models dominate the CBDC infrastructure market, each targeting different aspects of the value chain.

The Interest-Based Remuneration model allows wallet providers to earn interest on wholesale CBDC balances held at central banks, generating revenue through the spread between retail and wholesale CBDC rates. However, this model has limited implementation and remains primarily in pilot phases due to central bank concerns about monetary policy transmission.

Transaction Fee models represent the most widely adopted approach globally, where companies levy fees on merchants or users for CBDC transactions. Revenue sources include merchant processing fees ranging from 0.1% to 2.5% per transaction, premium service charges for enhanced features like instant settlement or advanced analytics, and cross-border transaction fees that can reach 1-3% for international transfers.

Product Bundle and Value-Added Services models offer basic CBDC functionality for free while monetizing premium services such as advanced budgeting and financial management tools, smart contract development interfaces with drag-and-drop functionality, enhanced security features like biometric authentication, and comprehensive data analytics and insights for business customers.

Infrastructure-as-a-Service (IaaS) models target smaller central banks and emerging economies by providing core infrastructure hosting, security and compliance monitoring services, interoperability solutions for cross-border payments, and comprehensive technology consulting with implementation support. This model generates recurring revenue through monthly or annual service contracts.

How are these companies generating revenue—through licensing, transaction fees, consulting, infrastructure-as-a-service, or something else?

Companies in the CBDC infrastructure space generate revenue through multiple complementary streams, with transaction fees and platform licensing emerging as the most profitable approaches.

What are the most profitable business models so far in 2025 for CBDC-related services or technologies?

Comprehensive Platform Providers offering end-to-end CBDC solutions generate the highest profit margins by combining core infrastructure development, wallet provision, merchant networks, and cross-border connectivity into integrated offerings.

These companies benefit from economies of scale and can charge premium prices for complete solutions, with the CBDC transaction market expected to reach $213 billion by 2030, up from $100 million in 2023. Leading platform providers like Giesecke+Devrient command annual contracts ranging from $2-10 million per central bank implementation, plus ongoing revenue shares from transaction volumes.

Specialized Intermediary Services focusing on Payment Interface Provider (PIP) roles have proven highly profitable by optimizing user experiences, implementing advanced security features, automating regulatory compliance, and integrating multi-CBDC wallet capabilities. These companies avoid the heavy infrastructure costs while capturing transaction fees and premium service revenues.

Cross-Border and Interoperability Solutions represent the fastest-growing profit center, with Swift's CBDC connector platform launching by 2026 and Project mBridge expanding to additional central bank participants. These services command premium pricing due to their complexity and strategic importance, with cross-border transaction fees ranging from 1-3% per transfer.

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Which business models have gained the most adoption by central banks or governments globally?

The transaction fee model has achieved the highest adoption rate among central banks globally, implemented in over 80% of active CBDC pilots and live deployments as of 2025.

Central banks prefer transaction fee models because they align private sector incentives with public policy goals while maintaining control over monetary policy transmission. The European Central Bank's Digital Euro Innovation Platform demonstrates this preference, with 70 partner companies developing transaction-based revenue models for wallet services, point-of-sale integration, and merchant acceptance networks.

Infrastructure-as-a-Service models have gained significant traction among smaller central banks and emerging economies that lack the technical resources for independent CBDC development. Countries in Africa, Southeast Asia, and Latin America are increasingly adopting hosted solutions that provide comprehensive CBDC capabilities without requiring substantial internal technical teams.

Hybrid public-private partnership models combining government funding with private sector expertise have become the standard approach in developed economies. The Bank of England's digital pound initiative, the Federal Reserve's FedNow integration discussions, and the People's Bank of China's digital yuan implementation all utilize this hybrid structure to balance public control with private sector innovation.

Consulting and implementation service models maintain universal adoption across all CBDC projects, as central banks consistently require external expertise for system design, regulatory compliance, security implementation, and stakeholder coordination regardless of their technical capabilities.

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Can you give concrete examples of companies or startups currently operating in the CBDC infrastructure space and what they offer?

Giesecke+Devrient (G+D) leads the CBDC infrastructure market, ranked #1 in Juniper Research's vendor leaderboard for providing complete ecosystem solutions with a focus on financial inclusion and expanded product offerings.

ConsenSys operates Ethereum-based CBDC platforms and blockchain infrastructure, partnering with multiple central banks for distributed ledger solutions and generating revenue through platform licensing and development services. R3 has secured a major partnership with the UAE Central Bank for CBDC development using their Corda platform, focusing on enterprise blockchain solutions with platform licensing and implementation revenue models.

The European Central Bank's Digital Euro Innovation Platform includes 70 companies developing various components: CaixaBank provides peer-to-peer online payment interfaces, Worldline develops offline payment solutions, Nexi creates point-of-sale payment systems, Amazon handles e-commerce payment integration, and the European Payments Initiative (EPI) manages payment infrastructure coordination.

Swift is developing a new CBDC platform by 2026 that will connect multiple CBDCs for cross-border interoperability and settlement, monetizing through transaction fees and platform access charges. Ripple Labs has secured partnerships for Hong Kong CBDC pilots and cross-border solutions, offering blockchain-based international payment infrastructure through platform licensing and transaction fees.

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How do these models differ across developed versus emerging economies or regions with different levels of digital infrastructure?

Developed economies prioritize enhanced user experience and convenience features, integration with existing sophisticated financial systems, privacy and security optimization, and cross-border interoperability for international trade and finance.

These markets support premium service offerings where companies can charge higher fees for advanced functionality, sophisticated analytics, and seamless integration with existing payment ecosystems. Revenue models focus on value-added services, premium features, and cross-border transaction fees that affluent customers are willing to pay for convenience and security.

Emerging economies emphasize financial inclusion and accessibility, mobile-first wallet solutions designed for smartphone-centric populations, simplified onboarding processes that accommodate users with limited financial history, and significant cost reduction in payment services compared to traditional banking infrastructure.

Business models in developing markets rely on volume-based transaction fees with lower individual charges, basic service monetization through government partnerships, and infrastructure development contracts funded by international development organizations. Companies often accept lower profit margins per transaction in exchange for massive user bases and government support.

The Asia-Pacific region represents the largest CBDC market with China's digital yuan leading global adoption, featuring advanced mobile payment integration, government-driven implementation across multiple sectors, and extensive cross-border trade facilitation through initiatives like the digital Belt and Road. Revenue models emphasize government contracts, comprehensive merchant acceptance networks, and trade finance solutions that support international commerce.

What use cases beyond central bank partnerships (e.g. commercial banks, payment providers, fintechs) are being explored or monetized?

Commercial banks are implementing deposit token solutions backed by wholesale CBDC, creating new revenue streams through liquidity management systems, automated regulatory reporting, and sophisticated risk management tools for CBDC exposure.

Payment providers are developing multi-currency wallet solutions that handle multiple CBDCs simultaneously, real-time settlement systems that reduce counterparty risk, enhanced KYC/AML services specifically designed for CBDC compliance requirements, and comprehensive API integration platforms that connect CBDCs with existing payment infrastructure.

Merchant and enterprise solutions include programmable payment systems for supply chain automation that execute payments based on delivery confirmations or quality metrics, smart contract platforms for complex business processes like escrow and conditional payments, treasury management tools for corporate CBDC holdings, and specialized cross-border trade facilitation services that reduce settlement times and costs.

Fintech applications are expanding rapidly with robo-advisory services integrated directly into CBDC wallets, lending platforms that use CBDC as collateral for instant loan approvals, insurance products specifically designed for CBDC transaction risks, and investment platforms offering CBDC-denominated financial products including bonds, mutual funds, and structured products.

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What risks or regulatory constraints affect the scalability or profitability of CBDC-related business models?

Transaction throughput limitations represent the most significant scalability challenge, requiring companies to develop multiple ledger solutions or expensive off-chain processing systems that increase infrastructure costs and complexity.

Network infrastructure dependencies particularly affect rural and developing areas where companies must invest heavily in connectivity solutions or accept reduced market penetration. Integration complexity with existing payment systems often requires custom development work that increases implementation costs and extends deployment timelines.

Data privacy requirements severely limit business model flexibility, as companies cannot monetize user data in ways common to other fintech applications, reducing potential revenue streams from analytics and targeted services. AML/CFT compliance costs can consume 15-25% of operational budgets for smaller companies, significantly reducing profit margins.

Cross-border regulatory harmonization challenges create compliance costs that can reach $2-5 million annually for companies operating across multiple jurisdictions. Holding limits and transaction caps imposed by central banks directly affect revenue potential by limiting the volume and value of transactions that companies can process.

Systemic risks include bank disintermediation threats that could eliminate traditional revenue streams from correspondent banking relationships, concentration risks from having too few dominant CBDC providers creating single points of failure, and cybersecurity vulnerabilities requiring continuous investment in security infrastructure that can consume 20-30% of IT budgets.

What new business models or market opportunities are expected to emerge in 2026 as more countries move beyond pilot phases?

Wholesale CBDC expansion will create massive opportunities in tokenized asset settlement using CBDC as the settlement currency, securities trading infrastructure with atomic settlement capabilities, and foreign exchange optimization through direct CBDC pair trading that eliminates traditional correspondent banking intermediaries.

Cross-border payment networks will scale dramatically with Project Nexus expanding to connect all ASEAN instant payment systems, mBridge scaling to include additional central bank participants from Europe and Africa, and Swift's CBDC platform becoming operational by 2026 with support for 20+ CBDCs.

Advanced programmability features will enable smart contract platforms for complex financial instruments like derivatives and structured products, conditional payment systems for trade finance that execute automatically based on shipping and customs data, and automated compliance solutions that handle regulatory reporting across multiple jurisdictions without human intervention.

Technology integration opportunities include AI-powered fraud detection systems specifically designed for CBDC transaction patterns, IoT integration for machine-to-machine payments in autonomous vehicle networks and smart city infrastructure, biometric authentication systems that provide seamless user experiences while maintaining security, and quantum-resistant cryptography implementation that future-proofs CBDC systems.

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What key capabilities or partnerships should a new entrant build to be competitive in the CBDC infrastructure space?

Technical capabilities form the foundation for CBDC infrastructure success, requiring blockchain and distributed ledger expertise across multiple protocols including Ethereum, Hyperledger, Corda, and emerging consensus mechanisms.

Cybersecurity specialization with quantum-readiness is essential as central banks prioritize security above all other considerations. Companies must demonstrate expertise in cryptographic implementations, secure key management, and threat detection systems specifically designed for high-value financial infrastructure.

API development and integration experience enables companies to connect CBDC systems with existing financial infrastructure, while mobile-first development capabilities are crucial for user adoption in both developed and emerging markets. Cross-border payment system experience provides critical knowledge for international CBDC connectivity projects.

Regulatory and compliance expertise includes automated AML/KYC systems that can process millions of transactions while maintaining regulatory compliance, comprehensive data privacy and protection implementation that meets GDPR and local requirements, deep understanding of financial services regulation across multiple jurisdictions, and proven experience in central bank engagement and partnership development.

Strategic partnerships with established financial institutions provide distribution channels and credibility, while technology vendor partnerships enable comprehensive solution delivery without requiring internal development of all components. Active engagement with regulatory bodies through sandbox participation demonstrates commitment to compliance and provides early access to regulatory guidance.

Conclusion

Sources

1. ITU CBDC Reference Architecture Report
2. AWS CBDC White Paper
3. EDPS CBDC Technical Dispatch
4. ECB Digital Euro Innovation Platform
5. World Bank CBDC Technical Note
6. Mastercard CBDC White Paper
7. BIS CBDC System Design
8. Clifford Chance CBDC Intermediary Analysis
9. Giesecke+Devrient CBDC Ecosystem Report
10. Cambridge CBDC Revenue Models Study
11. MetaTech Insights CBDC Market Analysis
12. Juniper Research CBDC Transaction Forecast
13. Swift CBDC Platform Announcement
14. Digital Pound Foundation CBDC Analysis
15. G+D Digital Currency Ecosystem
16. ConsenSys CBDC Solutions
17. UAE CBDC Launch Timeline
18. BIS CBDC Regional Analysis
19. ADB CBDC Risk Assessment
20. IMF CBDC Technical Note
21. G+D OMFIF CBDC Report 2025
22. Bank of England CBDC Speech
23. OMFIF CBDC Collaboration Study