Alibaba.com to Use JPMorgan's Blockchain for Tokenized Dollar and Euro Payments
Alibaba.com plans to use JPMorgan's JPMD blockchain infrastructure to enable tokenized deposits backed by fiat currencies, specifically the US dollar and the euro, to facilitate cross-border payments. This system will move tokenized deposits between institutional clients on a regulated bank balance sheet, aiming to speed up transactions and reduce the need for intermediaries.
Initially, the platform will focus on bank-issued digital tokens rather than stablecoins to ensure regulatory and operational clarity, although stablecoins could be explored in the future. Tokenized currencies will allow for direct transfers over the blockchain, bypassing multiple banks and currency conversions typically involved in cross-border trade.
This initiative represents a broader shift toward blockchain-based settlement in global commerce, with Alibaba.com president Kuo Zhang confirming plans to start with USD and euro tokenized deposits. JPMorgan's JPMD infrastructure will serve as the foundation for this cross-border payment tokenization platform for Alibaba.com.
