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Alibaba Develops Deposit Token to Sidestep China’s Fierce Stablecoin Crackdown: Report

Alibaba is growing a deposit-token cost system designed to streamline world commerce whereas working throughout the more and more strict stance Beijing has taken towards stablecoins, according to new reporting and feedback from firm executives.

The effort displays a broader push amongst Chinese corporations to modernize cross-border funds with out triggering regulatory backlash as authorities tighten management over digital currencies.

The initiative comes from Alibaba’s fast-growing cross-border e-commerce division, which on Friday additionally introduced a brand new AI-powered subscription service meant to enhance income.

As China Shuts Down Stablecoin Ambitions, Alibaba Shifts to Tokenized Bank Money

Kuo Zhang, president of Alibaba.com, informed CNBC the corporate is making ready to use tokenized variations of the euro and U.S. greenback to settle worldwide B2B funds extra effectively.

These tokens, typically referred to as “deposit tokens,” are issued by regulated banks and backed straight by buyer deposits, distinguishing them from privately issued stablecoins that regulators in Beijing have repeatedly warned in opposition to.

Zhang stated Alibaba expects tokenized payments to scale back settlement instances, lower middleman charges, and permit funds to transfer “concurrently” throughout markets such because the U.S., Europe, Hong Kong, Singapore, and mainland China.

He added that Alibaba.com plans to accomplice with world banking corporations, together with JPMorgan, whose personal tokenization system, JPMD, formally launched this yr for institutional purchasers.

The timing has drawn scrutiny. In July and August, Chinese corporations, together with JD.com and Alibaba affiliate Ant Group, lobbied to issue yuan-based stablecoins in Hong Kong.

Their objective was to counter the overwhelming dominance of U.S. greenback stablecoins, which account for greater than 90% of the $304.9 billion market.

Source: DefiLlama

However, by October, each companies abruptly paused those ambitions after the People’s Bank of China and different regulators privately instructed main tech corporations to halt any plans to concern or again stablecoins, even in Hong Kong’s newly regulated atmosphere.

Officials confirmed concern that privately issued fiat-backed tokens might erode the state’s financial authority.

Regulators have since doubled down, warning firms not to publish stablecoin analysis or maintain seminars on the subject, citing dangers of fraud and illicit finance.

The PBoC governor, Pan Gongsheng, final month referred to as stablecoins a growing threat to global financial stability and reaffirmed China’s zero-tolerance coverage towards personal digital currencies, even because the digital yuan continues increasing.

Alibaba Blends AI and Tokenized Finance as It Reboots Its Global B2B Strategy

Against that backdrop, Alibaba’s shift towards tokenized financial institution deposits displays a calculated transfer, adopting blockchain-based settlement whereas avoiding the political sensitivities round stablecoins.

Tokenized deposits enable funds to be processed on distributed methods however stay solely contained in the banking sector, backed by fiat foreign money held on the stability sheet.

This mechanism aligns extra intently with Beijing’s desire for state-linked digital finance somewhat than personal token issuance.

Zhang stated Alibaba.com plans to launch “agentic pay” in December, an AI-driven software that routinely drafts business contracts between consumers and suppliers by analyzing their message historical past.

This characteristic is a part of the corporate’s broader technique to improve its B2B ecosystem with synthetic intelligence.

Its new “AI Mode” search product permits companies to evaluate suppliers by pricing, logistics, and manufacturing capability.

Alibaba expects to cost roughly $20 monthly or $99 per yr for the service, creating a brand new subscription-based income stream.

The firm’s renewed know-how push comes as Chinese AI fashions acquire world consideration. In late October, Alibaba’s Qwen 3 Max posted a 108% gain in a live crypto trading contest, outperforming a number of Western AI methods.

Only DeepSeek, one other Chinese mannequin, delivered increased returns, whereas OpenAI’s GPT-5 and Google’s Gemini 2.5 Pro recorded steep losses.

The publish Alibaba Develops Deposit Token to Sidestep China’s Fierce Stablecoin Crackdown: Report appeared first on Cryptonews.

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