Alibaba Partners JPMorgan for Blockchain-Based Deposit-Token Payments

Alibaba has joined forces with JPMorgan to develop a blockchain-based deposit-token payment system, aimed at facilitating smoother cross-border transactions for its clients. The system, which utilizes JPMorgan's permissioned blockchain infrastructure, enables the creation of tokenized USD and EUR settlements on Alibaba.com.

The deposit tokens are bank-issued digital claims on deposits, programmable on a permissioned ledger. Unlike stablecoins, these tokens prioritize compliance-grade cross-border B2B settlement with auditable and faster payment finality. The system connects token minting and redemption with escrow, invoicing, and FX workflows on Alibaba.com.

The setup preserves KYC/AML controls, supervised reserves, and traceability, aligning with China's regulations. This initiative is expected to have an immediate impact on users, allowing them to enjoy streamlined USD/EUR collections and payouts via deposit tokens.