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Alibaba and JPMorgan's Tokenization Breakthrough: Driving $3 Billion in Worldwide B2B Trade

Alibaba and JPMorgan's Tokenization Breakthrough: Driving $3 Billion in Worldwide B2B Trade

Bitget-RWA2025/11/14 13:56
By:Bitget-RWA

- Alibaba partners with JPMorgan to launch tokenized USD/euro payments by December, aiming to cut cross-border transaction delays and costs via blockchain technology. - The initiative uses JPMorgan's JPMD token to enable real-time global settlements, bypassing intermediaries that typically slow down 72-hour international transfers. - Complementing this, Alibaba introduces AI tools like AI Mode ($20/month) for supplier comparisons and agentic pay for automated contract drafting, diversifying revenue streams

Alibaba Group is ramping up its global B2B commerce transformation by joining forces with

to introduce tokenized payment solutions, with the goal of minimizing delays and lowering expenses in international transactions. This project, expected to roll out by December, to facilitate settlements through digital representations of the U.S. dollar and euro. This strategy reflects a wider industry movement, as more financial and technology companies turn to tokenization to update global trade .

The partnership revolves around JPMorgan’s JPMD token, a digital currency backed by deposits and intended for business use. By converting traditional money into tokens,

aims to bypass the intermediaries that often slow down cross-border payments, to complete. “Tokenized deposits make it possible for funds to move instantly between countries without the complications of several banking layers,” explained Kuo Zhang, president of Alibaba.com.
Alibaba and JPMorgan's Tokenization Breakthrough: Driving $3 Billion in Worldwide B2B Trade image 0
. According to Zhang, this approach to send payments directly to Hong Kong, Singapore, or China instantly.

Alongside these payment innovations, Alibaba is also rolling out AI-powered features to boost platform productivity. The newly launched subscription service, AI Mode,

to assist buyers in evaluating suppliers by comparing costs, shipping options, and manufacturing capabilities. Priced at $20 per month or $99 for a year, this tool is designed to broaden Alibaba’s income sources beyond its core advertising and trading services . Zhang highlighted that AI is transforming global supply networks, with more companies turning to automation for sophisticated purchasing decisions .

Another AI-based feature, “agentic pay,” will automate the drafting of contracts between buyers and sellers by analyzing their communication records. This solution,

, replaces the current manual method of preparing and uploading contracts outside the platform. By generating agreements directly within Alibaba’s system, the tool is intended to minimize delays caused by disjointed communications .

Although the primary focus is currently on tokenized deposits, Alibaba is also considering the future use of stablecoins

. Zhang mentioned that while stablecoins differ from bank-issued tokenized currencies, they could provide extra flexibility in some cases. Nevertheless, Alibaba is prioritizing collaborations with established banks like JPMorgan to maintain compliance and security .

The alliance with JPMorgan represents a major milestone for Alibaba’s B2B segment, which earned over $3 billion in revenue last year. By incorporating blockchain and AI, Alibaba seeks to reinforce its leadership in global e-commerce and address challenges such as currency exchange costs and payment delays

. Experts believe that if the initiative succeeds, it could become one of the world’s largest real-world applications of tokenized payments, potentially processing billions of dollars in transactions each year.

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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.

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