Alibaba and JPMorgan are partnering to introduce a tokenized global payment system by December 2025, combining blockchain technology and AI-driven smart contracts to revolutionise international B2B transactions and challenge traditional cross-border payment methods.
Alibaba is preparing to revolutionize cross-border B2B payments through a groundbreaking collaboration with JPMorgan, aiming to launch a tokenized global payment system by December 2025. This initiative taps...
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into JPMorgan’s tokenization technology to streamline international transactions within Alibaba’s expansive $35 billion e-commerce network, targeting the inefficiencies that have long plagued global trade settlements.
At the core of this effort is the use of tokenized fiat currencies, specifically tokenized USD and EUR, backed 1:1 by real-world deposits. Unlike traditional stablecoins or decentralized cryptocurrencies, these tokens leverage JPMorgan’s experience with digital deposit tokens, such as the JPM Coin, which is designed for secure, near-instant settlement of institutional transactions. Alibaba’s President Kuo Zhang highlighted in a CNBC interview that this system is intended to solve the longstanding problem of fragmented, slow, and costly cross-border payments by establishing a uniform, 24/7 payment rail accessible to global traders without needing multiple platforms.
Beyond just tokenized payments, the platform will integrate AI-driven smart contracts to automate key transactional processes such as settlements, the release of funds, and dispute resolution. This layer of automation, branded under the name ‘Agentic Pay,’ promises to reduce reliance on manual intermediaries, accelerating the speed of routine business transactions and lowering associated costs. The AI functionality extends further, Alibaba is simultaneously launching an AI-powered subscription service called ‘AI Mode,’ which uses generative AI to aid businesses in supplier discovery and contract generation. Available for a subscription fee, this service enhances Alibaba’s B2B marketplace by providing richer, data-driven comparisons of suppliers based on price, logistics, and production quality.
JPMorgan’s collaboration brings not only its sophisticated tokenization infrastructure but also its strategic presence in blockchain innovation. The bank recently extended its digital assets footprint by launching JPM Coin on Base, a public blockchain developed by Coinbase, illustrating its drive to integrate traditional banking with blockchain technology. This partnership positions Alibaba as one of the first major global e-commerce players to deploy a tokenized payment rail at scale, potentially setting a new standard for cross-border trade finance and putting competitive pressure on other institutions to adopt similar systems.
The system’s reliance on JPMorgan’s dollar-backed JPMD token on Coinbase’s Base blockchain ensures enhanced compliance and security, while providing businesses with low-fee, near-instant settlements anytime, day or night. Industry observers see this as a significant milestone in institutional adoption of blockchain technology, potentially moving billions of dollars annually and transforming how international B2B commerce is conducted.
Alibaba’s combined deployment of AI-powered business tools with this tokenized payments infrastructure suggests a holistic upgrade of the global trade ecosystem, blending technological innovation with practical business solutions. By making cross-border settlements more efficient and transparent, Alibaba and JPMorgan are poised to challenge traditional banks and payment networks that have historically dominated this space but often lag in speed and cost-effectiveness.
As the December rollout approaches, all eyes will be on how quickly Alibaba’s ‘Agentic Pay’ gains market traction and whether it sparks a broader shift in global payments towards blockchain-enabled tokenized rails. If successful, it could markedly reduce friction in international trade, setting a precedent for future financial infrastructures in B2B commerce.
Source: Noah Wire Services
