Key Takeaways
- Alibaba plans to launch a tokenized global payment network by December.
- The system uses a stablecoin-like model and is being developed with JPMorgan’s tokenization technology.
- The network is designed to streamline cross-border B2B payments using tokenized fiat and AI-powered smart contracts.
Alibaba is preparing to overhaul the way cross-border payments move through its $35 billion e-commerce ecosystem, betting on tokenization as the next major leap in global settlement infrastructure.
During an interview with CNBC, Kuo Zhang, president of Alibaba.com, confirmed that the company is building a new payment network that uses tokenized fiat—essentially a stablecoin-like system—to simplify international B2B transactions.
The company aims to launch the system by the end of the year.
A Stablecoin-Like System for Cross-Border Trade
Alibaba’s proposal comes at a time when global e-commerce is increasingly fragmented and older payment rails are struggling to keep up.
Tokenization, a core blockchain concept that converts currencies or assets into transferable digital tokens, is being increasingly explored as a workaround.
“Users from different countries shouldn’t need different platforms just to move money,” Zhang said, outlining Alibaba’s objective to make global payments feel instantaneous and uniform.
Zhang said Alibaba is experimenting with tokenized USD and EUR, with ambitions to support additional currencies after launch.
While not described as a formal stablecoin, the system resembles one: tokenized fiat backed by real deposits, used purely for settlement.
Officials also revealed that AI-driven smart contracts will be integrated into the payment flow — automating steps such as settlement, dispute handling, or release of funds once conditions are met.
The company’s new B2B payment rail, Agentic Pay, will be rolled out alongside the tokenized system.
The combined solution targets importers, exporters, and manufacturers who struggle with costly, slow, and opaque cross-border payment workflows.
JPMorgan’s Tokenization Tech Behind the Upgrade
Alibaba shared that it will build its system using JPMorgan’s tokenization technology.
The collaboration links two major players in digital finance innovation:
JPMorgan’s Role
- JPMorgan has been expanding its blockchain and tokenization initiatives through Kinexys (formerly Onyx).
- Earlier this year, the bank launched its real-time tokenization settlement network used by large institutions.
- It also issued JPM Coin on Coinbase’s Base network — the first USD deposit token from a major bank on a public chain.
Unlike traditional stablecoins, JPM Coin is a deposit token, backed 1:1 by bank deposits and used strictly by institutional clients for instant settlement.
For Alibaba, integrating this technology offers the ability to move digitized fiat across borders without relying on crypto exchanges or volatile assets — a key requirement for large-scale trade networks.
Industry analysts expect that the partnership could become one of the biggest real-world applications of tokenization to date, potentially moving billions in annual volume.
What Comes Next
If Alibaba meets its December timeline, it will be among the first global e-commerce giants to roll out a tokenized settlement layer at scale.
The move could pressure competitors in the U.S. and Europe to adopt similar systems as tokenization spreads across capital markets, banks, and global supply chains.
Whether Alibaba’s payment rail becomes a template for global B2B commerce will depend on adoption — but the company’s reach gives it a head start.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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