Alibaba Advances Cross-Border Trade With Tokenized Currency Settlement

Alibaba’s global B2B marketplace is preparing a major upgrade to how international payments move across its platform, aiming to make transactions faster, cheaper and more efficient through the use of tokenized fiat currencies. Speaking with CNBC, Alibaba.com president Kuo Zhang revealed that the company will begin integrating tokenized deposits backed by major currencies such as the U.S. dollar and euro, marking a significant step toward blockchain-based settlement in global commerce.

The initiative is being developed in collaboration with JPMorgan, which will provide its blockchain-powered JPMD infrastructure. This system enables institutional clients to transfer tokenized deposits across borders with fewer intermediaries and reduced settlement friction. Today, a typical cross-border payment—such as a U.S. buyer sending funds to a Chinese supplier—often routes through several correspondent banks and multiple currency conversions, causing delays and additional fees. By contrast, a tokenized version of a fiat currency can move directly between parties on a secure blockchain ledger, ensuring faster execution and transparent settlement.

Unlike stablecoins issued by non-bank entities and backed by assets like U.S. Treasuries, tokenized deposits remain on a regulated bank’s balance sheet. This structure provides higher regulatory oversight and may appeal to enterprises seeking compliance-friendly digital payment solutions. Zhang noted that Alibaba.com is open to adopting stablecoins in the future but emphasized that the company will first focus on bank-issued digital tokens to ensure operational stability and regulatory clarity.

As blockchain adoption accelerates across global trade, Alibaba’s move positions the platform to streamline international transactions while offering buyers and suppliers more reliable payment options. The shift toward tokenized money reflects a broader industry trend aimed at modernizing cross-border commerce and reducing long-standing inefficiencies in global settlement systems.