Alibaba.com Develops Tokenized Deposit Payment System Amid China's Stablecoin Crackdown
Alibaba.com is developing a deposit-token payment system that utilizes tokenized bank deposits backed by customer deposits to facilitate cross-border B2B payments within a regulated framework. Kuo Zhang, president of Alibaba.com, stated that the company plans to use tokenized euro and U.S. dollar settlements with regulated banks issuing the tokens. These deposit tokens are designed to reduce settlement times, cut intermediary fees, and enable near-simultaneous fund movement across markets including the U.S., Europe, Hong Kong, Singapore, and mainland China, with JPMorgan as a partner (JPMD).
This strategy aligns with Alibaba’s broader push in cross-border e-commerce and reflects a wider Chinese effort to modernize cross-border payments while adhering to regulatory oversight. In contrast to private stablecoin initiatives, Alibaba’s tokenized deposits aim to remain within the banking system rather than creating private digital currencies, which is consistent with Beijing’s preference for state-linked digital finance.
In mid-2025, other Chinese tech giants such as JD.com and Ant Group sought to issue yuan-based stablecoins in Hong Kong but paused these plans in October following regulators’ instructions to halt private stablecoin issuance. Regulators have also warned against publishing stablecoin research or holding related seminars. PBoC governor Pan Gongsheng described stablecoins as a threat to financial stability and reaffirmed zero tolerance for private digital currencies as the digital yuan expands its presence.
Alongside this payment system development, Alibaba is advancing its broader technology offerings, including AI-enabled services like an AI-driven subscription feature and an "agentic pay" tool planned for launch in December.
