Alibaba Explores Deposit Token as China Tightens Grip on Stablecoins

 Quick Breakdown 

• Alibaba’s cross-border e-commerce arm is developing a deposit token to ease overseas payments.
• Mainland regulators continue to intensify pressure on stablecoin activity, prompting major tech firms to scale back their involvement.
• New yuan-linked stablecoins emerging in Hong Kong are strictly targeted at offshore markets, not mainland China.

Alibaba eyes blockchain deposit token for global payments

 

Alibaba’s international e-commerce division is experimenting with a deposit token to streamline cross-border transactions, according to a report from CNBC. President Kuo Zhang said the company is exploring “stablecoin-like” technology, but within a regulated banking framework that aligns with China’s strict stance on digital currencies .

Source: CNBC

Unlike traditional stablecoins, typically issued by private companies and backed by reserves, a deposit token represents a direct claim on funds held at a commercial bank. This structure makes it a supervised liability of the issuing bank, potentially offering a regulatory-safe path for blockchain-enabled payments.

Alibaba’s interest follows JPMorgan’s recent rollout of its own deposit token for institutional clients, reinforcing a growing shift among major financial players toward bank-regulated digital settlement tools.

Tech giants retreat amid Beijing’s anti-stablecoin clampdown

The move comes in the shadow of Beijing’s increasingly forceful crackdown on stablecoin development. Earlier this year, Ant Group and JD.com reportedly paused plans to issue stablecoins in Hong Kong after regulators signalled dissatisfaction with such initiatives.

A now-deleted report from Caixin suggested that Chinese companies operating in Hong Kong may soon face tighter restrictions on crypto-related activities, including bans on research, seminars, and investment in exchanges.

Authorities have also warned local firms to halt stablecoin-focused content due to concerns that such assets could be misused for fraudulent purposes, signalling a broader effort to prevent a domestic stablecoin ecosystem from emerging.

Offshore Yuan stablecoins rise, but the mainland remains off-limits

Despite the tightening stance onshore, offshore markets are experiencing a different trend. Blockchain platform Conflux has recently launched a new stablecoin backed by offshore Chinese yuan, targeting entities involved in the Belt and Road Initiative.

Another regulated yuan-linked stablecoin was introduced at Hong Kong’s Belt and Road Summit in September, also targeting international markets and foreign exchange use.

 

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