Alibaba and JPMorgan Circumvent Stablecoin Restrictions Using Deposit-Token Trading Platform

Alibaba Group Holding Ltd. and

Chase & Co. plan to introduce a blockchain-based B2B payment platform by December 2025, utilizing deposit tokens to simplify international trade while adhering to China's strict digital currency policies. Named "Agentic Pay," the system will , eliminating the need for conventional banking intermediaries and lowering transaction expenses. This partnership builds on JPMorgan's Kinexys blockchain, which .

The platform uses "deposit tokens" that are fully backed by fiat currency held in regulated banks, setting them apart from private stablecoins that have faced regulatory pushback in China. These tokens, similar to JPMorgan's JPMD,

with very low delays, and offer interest-earning features that could appeal to major institutional investors. Alibaba's strategy is in line with Beijing's support for state-backed digital finance, . The People's Bank of China has ramped up its efforts against private digital currencies, prompting to shift away from previous plans to launch yuan-based stablecoins .

to automatically draft contracts between buyers and sellers, converting chat records into enforceable agreements. This AI-powered feature is part of Alibaba's larger effort to strengthen its B2B platform, which . The company also intends to roll out an "AI Mode" search function, allowing users to compare suppliers based on pricing, shipping, and manufacturing capabilities . Customers will be charged $20 per month or $99 per year for access to these tools, marking a move toward subscription-based revenue .

This project is part of a wider movement in the industry toward tokenized payment solutions. A recent white paper from FXC Intelligence-SUNRATE noted that AI, stablecoins, and blockchain are transforming B2B payments,

. At the same time, Binance and other trading platforms are increasing their support for tokenized Treasurys, reflecting rising institutional interest in digital assets that generate returns .

Alibaba's initiative comes at a pivotal moment. As Chinese authorities tighten oversight of stablecoins, the company's deposit-token approach offers a regulatory-friendly solution for international commerce. Kuo Zhang, president of Alibaba.com,

, describing the initiative as a "paradigm shift" for online business. Experts believe the platform could handle billions in transactions each year, potentially prompting rivals to adopt similar technologies as tokenization becomes more widespread .