Alibaba is launching a tokenized payment network backed by JPMorgan, aiming to transform global trade while staying compliant with China’s strict stablecoin rules.
Key Takeaways
- Alibaba plans to launch a blockchain-based tokenized payment system by December, leveraging JPMorgan’s Kinexys infrastructure.
- The system will use tokenized versions of USD and EUR, backed by real bank deposits, not private stablecoins.
- This move avoids China’s regulatory crackdown on stablecoins while enabling faster, cheaper global B2B payments.
- AI tools like “Agentic Pay” will automate contracts, turning buyer-supplier chats into binding agreements.
What Happened?
Alibaba is working with JPMorgan to create a new blockchain-powered payments system that mimics stablecoin functionality without violating China’s digital currency regulations. By using tokenized bank deposits instead of traditional cryptocurrencies, Alibaba aims to streamline global B2B payments and tap into a new revenue stream.
Alibaba’s Tokenized Payments Vision
The new system will operate with tokenized USD and EUR, behaving like stablecoins but backed by regulated bank deposits instead of privately issued digital currencies. This distinction is critical as Chinese regulators have clamped down on all stablecoin activity, even in Hong Kong’s newly regulated digital finance markets.
Kuo Zhang, president of Alibaba.com, told CNBC the system will simplify and accelerate cross-border trade by removing common hurdles such as:
- Delays of 48 to 72 hours for international settlements.
- High intermediary fees.
- Fragmented platforms for different regions and currencies.
Zhang said:
Powered by JPMorgan’s Kinexys Blockchain
Alibaba is building the system using JPMorgan’s tokenization technology, Kinexys (formerly Onyx), which already processes $2 billion in tokenized transactions daily. The collaboration gives Alibaba access to battle-tested blockchain infrastructure and aligns with JPMorgan’s broader push into institutional tokenized settlements.
The effort also sidesteps China’s crackdown on stablecoins. In mid-2023, both Alibaba-affiliate Ant Group and rival JD.com reportedly paused efforts to launch yuan-backed stablecoins after private guidance from the People’s Bank of China (PBoC) discouraged further development.
Why Deposit Tokens and Not Stablecoins?
Deposit tokens are digitized versions of fiat currency issued by regulated banks and fully backed by customer deposits. Unlike stablecoins, they don’t originate from private tech firms, which makes them more palatable to regulators wary of financial destabilization.
Zhang said these tokens will allow funds to move “simultaneously” across markets such as the U.S., Europe, Hong Kong, Singapore, and mainland China, enhancing efficiency and reducing reliance on traditional banking delays.
AI Tools Take Center Stage: Meet Agentic Pay
Alongside the tokenized payment network, Alibaba will debut Agentic Pay, an AI tool that analyzes buyer-seller chat history to automatically generate commercial contracts. This product is part of a broader AI push that includes:
- “AI Mode” search, enabling businesses to compare suppliers by price, capacity, and logistics.
- A subscription-based model, priced at $20 per month or $99 per year.
- Integration of smart contracts to automate settlement and dispute handling.
The company’s AI portfolio is growing fast. Alibaba’s Qwen 3 Max AI model recently outperformed top Western models like OpenAI’s GPT-5 and Google’s Gemini 2.5 Pro in a live crypto trading contest.
CoinLaw’s Takeaway
In my experience watching the evolution of global payments, this might be one of the most strategic pivots by a major Chinese tech firm. Instead of confronting regulators head-on like others have, Alibaba is navigating around the storm by using regulation-friendly technology that still delivers the core value of blockchain: speed, transparency, and efficiency. I found it especially clever how they paired this with AI tools that tackle the contractual side of B2B trade, a long-standing pain point. If they pull this off in December, this could be a model for others in Asia and beyond.
