Alibaba Develops Deposit Token to Navigate China’s Stablecoin Crackdown
Alibaba is pioneering a deposit-token payment system aimed at enhancing global commerce efficiency while complying with China's stringent stablecoin regulations. The initiative, led by Alibaba's cross-border e-commerce division, leverages tokenized euros and dollars to streamline B2B payments.
Kuo Zhang, president of Alibaba.com, emphasized the system's potential to reduce settlement times and intermediary costs. Unlike private stablecoins, these deposit tokens are bank-issued and backed by customer deposits, aligning with Beijing's regulatory framework.
The MOVE underscores a broader trend among Chinese firms to modernize cross-border transactions without provoking regulatory scrutiny. Alibaba plans to collaborate with global banking partners to facilitate seamless fund movement across key markets, including the U.S., Europe, and Hong Kong.
