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

Alibaba is set to enhance its global business-to-business platform by utilizing tokenized deposits that are backed by fiat currencies such as the US dollar and euro, in collaboration with JPMorgan. This technology aims to streamline cross-border payments, expediting transactions and reducing the reliance on intermediaries by enabling direct transfers over a blockchain-based system. Initially, Alibaba will focus on bank-issued digital tokens to ensure regulatory clarity before potentially exploring stablecoins in the future. This move aligns with a broader trend towards blockchain-based settlements in global commerce. The cooperation leverages JPMorgan’s blockchain infrastructure to facilitate the transfer of tokenized deposits between institutional clients. In traditional cross-border trade, transactions often face delays due to multiple banks and currency conversions; however, with tokenized currencies, these exchanges can occur directly on the blockchain, enhancing efficiency and lowering costs.

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