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

Alibaba's global business-to-business platform is set to utilize tokenized deposits backed by fiat currencies like the U.S. dollar and euro in partnership with JPMorgan. This collaboration aims to streamline cross-border payments by leveraging blockchain technology to facilitate faster transactions and reduce the dependency on intermediaries. Currently, international payments often require multiple banks and currency conversions, which can be time-consuming and costly. By implementing tokenized currencies, Alibaba intends to allow direct transfers over a blockchain system. Initially, the company will focus on bank-issued digital tokens for regulatory clarity and operational reasons, although it may consider stablecoins in the future. The infrastructure being used is JPMorgan's JPMD system, designed for moving tokenized deposits among institutional clients, marking a significant shift towards blockchain-based settlements in global commerce.

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