In a bold pivot amid Beijing’s escalating crackdown on stablecoins, Alibaba’s cross-border e-commerce unit is exploring deposit tokens to streamline overseas transactions, leveraging stablecoin-like blockchain technology. Alibaba president Kuo Zhang revealed in a CNBC interview that these tokens—essentially regulated claims on bank deposits—aim to enhance efficiency without the risks flagged by regulators.
The move comes as Chinese authorities ordered tech giants like Ant Group and JD.com to scrap Hong Kong stablecoin pilots, halting research and seminars since August. A September report highlighted curbs on mainland firms’ crypto investments, underscoring fears of fraud. Offshore alternatives persist, including Conflux’s yuan-backed stablecoin for Belt and Road partners and a regulated international yuan token launched in Hong Kong.
Hong Kong Web3 Association co-chair Joshua Chu noted, “China is unlikely to issue stablecoins onshore.” Echoing JPMorgan’s recent institutional deposit token rollout on Base, Alibaba’s strategy signals a shift toward compliant fintech innovations, potentially reshaping cross-border payments in Asia while navigating China’s stringent oversight.
