Alibaba Develops Deposit Token to Sidestep China’s Fierce Stablecoin Crackdown: Report

Alibaba is developing a deposit-token payment system designed to streamline global commerce while working within the increasingly strict stance Beijing has taken toward stablecoins, according to new reporting and comments from company executives. The effort reflects a broader push among Chinese firms to modernize cross-border payments without triggering regulatory backlash as authorities tighten control over digital currencies. The initiative comes from Alibaba’s fast-growing cross-border e-commerce division, which on Friday also announced a new AI-powered subscription service meant to boost revenue. As China Shuts Down Stablecoin Ambitions, Alibaba Shifts to Tokenized Bank Money Kuo Zhang, president of Alibaba.com, told CNBC the company is preparing to use tokenized versions of the euro and U.S. dollar to settle international B2B payments more efficiently. These tokens, often referred to as “deposit tokens,” are issued by regulated banks and backed directly by customer deposits, distinguishing them from privately issued stablecoins that regulators in Beijing have...

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