Alibaba and JPMorgan will use blockchain in digital payments.

Alibaba, in global business-to-business platforms, will utilize tokenized deposits backed by fiat currencies like the US dollar and euro in collaboration with JPMorgan. This technology aims to accelerate cross-border payments and eliminate intermediaries, enabling the direct transfer of digital currencies through a blockchain-based system.

Alibaba will initially focus on digital tokens issued by banks instead of stablecoins. This approach aims to provide regulatory and operational clarity. There is also the possibility of exploring stablecoins in the future.