Alibaba Explores Deposit Tokens Amid China’s Stablecoin Crackdown

Alibaba is developing a bank-backed deposit token to facilitate cross-border payments, navigating China's stringent ban on private stablecoins. The tech giant's approach leverages blockchain technology while remaining firmly within the regulated banking framework—a calculated compromise between innovation and compliance.

Beijing's stance remains clear: privately issued stablecoins are prohibited, but institutional blockchain solutions with state oversight are tolerated. Alibaba's deposit token would function as a direct claim on commercial bank deposits, differentiating it from speculative crypto assets while streamlining international trade settlements.

The MOVE signals how major Chinese corporations are adapting to the country's bifurcated digital asset policy—crushing decentralized alternatives while cautiously embracing controlled financial innovation. This development could accelerate blockchain adoption in global commerce without challenging China's monetary sovereignty.