Alibaba to Use JPMorgan’s Blockchain for Tokenized Dollar and Euro Payments

Alibaba is set to utilize JPMorgan’s blockchain technology to implement tokenized deposits backed by fiat currencies like the US dollar and euro for cross-border payments. This collaboration aims to streamline transactions by minimizing intermediaries and accelerating digital currency transfers over a blockchain framework. The company will initially focus on bank-issued digital tokens to maintain regulatory clarity before potentially exploring stablecoins. This initiative marks a significant shift towards blockchain-based settlement in global trade, as current practices often involve complex currency conversions and multiple bank intermediaries, leading to delays and increased costs. By leveraging JPMorgan's blockchain infrastructure, Alibaba aims to facilitate faster transactions directly between institutional clients without traditional banking bottlenecks, setting the stage for an evolution in the way international payments are handled.

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