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.
Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
October Non-farm Payrolls Reignite December Rate Hike Expectations! Wall Street Bets Probability Over 80%, "New Fed News Agency": AI Sell-off May Become a Policy Variable
After the non-farm payroll report, traders' bets on a December rate hike surged to as high as 85%. Wall Street analysts believe the report provides room for further rate hikes, bringing renewed pressure for a hike at a time when post-election market concerns over slowing AI development might dampen expectations. Some remain cautious about a December hike, as stock market volatility and AI investment prospects could restrain the Federal Reserve. "New Fed News Agency" notes the report has not shaken the Fed's outlook on economic growth and inflation, but whether AI asset sell-offs change financial conditions could become a new variable for the December decision. Attention should be paid to whether Waller values lagging employment data or forward-looking market signals.
U.S. non-farm payrolls surge by 165,000 in October, far exceeding expectations! Unemployment rate unexpectedly drops to 4.1%, December rate hike expectations intensify
In October, US non-farm payrolls increased by 165,000, which is 2.5 times the Wall Street median forecast of 65,000 and represents an exceptionally strong deviation of about 5 standard deviations, exceeding the upper limit of all institutional forecast ranges. The unemployment rate unexpectedly fell from 4.2% to 4.1%, while the market had expected it to remain unchanged; average hourly wages also accelerated year-on-year growth to 3.1%. Meanwhile, the previous two months' non-farm payrolls were revised upwards by a total of 84,000. Following the release of the data, the yield on 2-year US Treasury bonds rose by 7 basis points, and the pricing of the probability of a Fed rate hike in December climbed to 70%.
AI Sell-off Hits Anthropic IPO, Potential Valuation Expected to Drop to $1.2–1.3 Trillion
The valuation range discussed by potential investors has been lowered from the previous high of $2 trillion to between $1.2 trillion and $1.3 trillion, and some strategists have even suggested going below $1 trillion to ensure safety. In the face of significant market volatility and financial concerns such as quarterly losses, Anthropic is facing tough decisions, including a discounted valuation, reducing the size of the offering, or postponing the listing.
Crypto prices
More
