Alibaba considers launching a deposit token for cross-border payments
Alibaba is evaluating the development of a deposit token designed for cross-border payments, as Chinese authorities intensify their crackdown on stablecoins, according to a CNBC report. Kuo Zhang, president of Alibaba’s global e-commerce division, stated that the company is exploring the use of stablecoin-like technology to streamline international transactions.
The model under review is a deposit token, a blockchain-based instrument representing a direct claim on commercial bank deposits and treated as a regulated liability of the issuing bank. The concept is similar to traditional stablecoins, although stablecoins are issued by private entities and backed by assets to maintain value.
The report follows recent developments at JPMorgan Chase, which launched its own deposit token for institutional clients, signaling broader adoption of this model within the global financial sector. It also comes amid reports that Chinese tech companies, including Ant Group and JD.com, have suspended plans to issue stablecoins in Hong Kong after pressure from authorities in Beijing.
Sources indicate that mainland regulators continue to block the emergence of a domestic stablecoin industry, prompting companies to search for compliant alternatives.
