Key Takeaways
- •Alibaba plans to use tokenized bank deposits to modernize global B2B payments.
- •JPMorgan’s Kinexys blockchain network will serve as the settlement backbone.
- •The system aims to eliminate 48–72 hour delays in cross-border trade payments.
- •AI-generated contracts and automated settlement will work together in the rollout.
Alibaba believes the window for true disruption has finally arrived, and the tool that makes it possible is neither crypto nor CBDCs, but tokenized bank deposits operated on private blockchain rails.
Rather than beginning with its own technology, Alibaba sought out a partner already operating large-scale tokenized settlements. Behind the scenes, the giant has been working with JPMorgan’s Kinexys division, a project that has quietly converted parts of wholesale banking infrastructure into programmable, blockchain-based payment rails. The collaboration has now reached the deployment stage, and Alibaba is preparing to switch portions of its global B2B payment traffic onto the new model.
Why Alibaba Thinks Tokenization Can Fix Trade
The company’s payments team says that the breakthrough is not speed alone — it’s predictability. Suppliers frequently report that invoices can sit in transit for two to three days, with no clear visibility into where the funds are stuck. Tokenized deposits, backed by U.S. dollars and euros sitting in regulated institutions, settle instantly between participating banks even if the businesses are on opposite sides of the world.
By removing the 48–72 hour waiting window, exporters gain faster cashflow, while buyers avoid the cascading penalties and disputes that come from delayed settlement.
AI Comes Before Blockchain in Alibaba’s Strategy
The payments overhaul also includes a separate but complementary initiative. Alibaba has been testing Agentic Pay, an AI system that transforms supplier-buyer chats into binding payment agreements and automates the release instructions. The idea is to eliminate the paperwork bottleneck before tackling the settlement bottleneck.
Only after both layers are digitally generated — contracts and settlement — does Alibaba see blockchain becoming powerful.
Why JPMorgan Is the Logical Backbone
While tech platforms have experimented with crypto stablecoins for international trade, multinationals often won’t adopt assets that sit outside mainstream banking regulation. JPMorgan’s tokenization model maintains fiat backing, compliance controls and full regulatory traceability while providing smart-contract functionality. For Alibaba, the appeal is that nothing needs to be reinvented — the banking infrastructure already exists; blockchain simply becomes the settlement engine rather than a new currency.
What Happens If December Goes Live
Alibaba’s deployment timeline targets the end of December, with a focus on high-volume supplier corridors first and gradual expansion afterward. Analysts expect that if the pilot works, settlement volume could grow into the billions annually, not because the payments industry wants new technology, but because suppliers will adopt anything that reliably shortens the time it takes to get paid.
More broadly, if the system proves scalable, it could influence how governments and banks think about digital money. Tokenized deposits might become the pathway neither crypto maximalists nor CBDC advocates predicted — a way for global commerce to operate faster without replacing existing currencies.