Alibaba Leverages Blockchain to Revolutionize Cross-Border Payments

As of November 16th, 2025, Alibaba's global business-to-business platform, Alibaba.com, is taking a significant step towards revolutionizing cross-border payments. The company has announced plans to begin using tokenized deposits backed by fiat currencies such as the U.S. dollar and euro, in partnership with JPMorgan.

This blockchain-based technology is designed to expedite international transactions and minimize the number of intermediaries involved. Currently, a U.S. buyer sending dollars to a Chinese supplier may face a complex process of funds being routed through multiple banks and undergoing currency conversions, adding both time and cost. With tokenized currency, a digital version of the dollar could be transferred directly over a blockchain system, bypassing these intermediaries.

Alibaba.com will leverage JPMorgan's JPMD infrastructure, a system designed to facilitate the movement of tokenized deposits between institutional clients. Unlike stablecoins, which are typically issued by non-banks and backed by assets like treasuries, these tokenized deposits will sit on a regulated bank's balance sheet, ensuring greater regulatory and operational clarity.

While Alibaba is also exploring the possibility of adopting stablecoins in the future, the company's initial focus will be on bank-issued digital tokens to ensure a smooth transition and compliance with relevant regulations.