Alibaba Plans Deposit Tokens as Ant Group and JD.com Halt Under Mainland Stablecoin Restrictions
Alibaba’s cross-border e-commerce unit is reportedly working
on a deposit token amid China’s regulatory crackdown on stablecoins, CNBC
reported.
Digital
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The report comes after Chinese tech firms, including Ant
Group and JD.com, paused their HongKong
stablecoin plans following guidance from mainland regulators over concerns
about private control of currency‑like instruments.
Alibaba Follows JPMorgan with Deposit Token
Alibaba president Kuo Zhang told CNBC that the company plans
to use stablecoin-like technology to streamline overseas transactions. The
deposit token under consideration is a blockchain-based instrument representing
a direct claim on commercial bank deposits and is treated as a regulated
liability of the issuing bank.
China Tightens Crypto Rules as Tokens Grow
Traditional stablecoins are issued by private entities and
backed by assets to maintain value. Alibaba’s move follows a report that
JPMorgan Chase rolled out its deposit token to institutional clients earlier
this week.
In late September, a Caixin report suggested Chinese firms
in HongKong could
face restrictions on cryptocurrency activities, including limits on mainland
investments in crypto and crypto exchanges.
The report was later removed. Earlier, in August,
authorities instructed local firms to stop publishing research and holding
seminars on stablecoins, citing concerns that these tokens could facilitate
fraud.
🚨 LATEST: Alibaba Group is planning to roll out AI-subscription services and stable-coin-style payments with JPMorgan Chase backing.Tokenization is going mainstream. pic.twitter.com/laDH4EHE7Q
— Real World Asset Watchlist (@RWAwatchlist_) November 14, 2025
Offshore Yuan Stablecoins Target Foreign Markets
Despite restrictions on the mainland, Chinese entities have
maintained some involvement in stablecoins abroad. In July, blockchain firm
Conflux introduced a new stablecoin backed by offshore Chinese yuan for
overseas entities and countries linked to China’s Belt and Road Initiative.
A regulated stablecoin tied to the international version of
the yuan also launched in late September, targeting foreign exchange markets. Joshua
Chu, co-chair of the Hong Kong Web3 Association, said, “China is unlikely to
issue stablecoins onshore.”
This article was written by Tareq Sikder at www.financemagnates.com.
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