Alibaba and JPMorgan Disrupt Conventional Banking with Real-Time Blockchain Transactions

Alibaba Group and

are preparing to transform international B2B payments by introducing a blockchain-powered tokenized payment solution by the end of 2025, with the goal of removing intermediaries and speeding up transactions . This project, revealed at the CoCreate Europe event in London, , a blockchain system that supports tokenized deposits backed by reserves in U.S. dollars and euros. Alibaba's international B2B marketplace, .com, to provide almost immediate settlements, cutting down on the need for conventional banking channels that often result in significant costs and delays.

This system will

, creating blockchain-based representations of the dollar and euro that can be sent directly, eliminating the usual chain of intermediaries. This method in cross-border commerce, where payments typically require 48 to 72 hours to clear due to currency exchanges and multi-layered banking systems. By tokenizing deposits instead of using stablecoins, Alibaba and seek to provide regulatory certainty and operational reliability, though they may consider stablecoins in the future . The system is supported by JPMorgan's Kinexys blockchain, which already handles $2 billion in tokenized transactions daily, .

Kuo Zhang, President of Alibaba.com, highlighted the pressing need to upgrade global trade processes, describing this transition as a "paradigm shift" fueled by AI and blockchain

. In addition to tokenized payments, Alibaba is rolling out AI-driven features to further optimize operations. Agentic Pay, expected to debut in December, by turning buyer-seller discussions into binding contracts. Another tool, AI Mode, to assist buyers in evaluating suppliers by price, production capabilities, and logistics, boosting efficiency across intricate global supply networks.

This partnership mirrors a wider industry movement, with more institutions embracing tokenization to upgrade financial systems. JPMorgan recently

by introducing a deposit token on Coinbase's Base blockchain, while UBS and Ant International have also . Alibaba's platform could process billions in yearly settlements once operational, making it one of the largest practical uses of tokenized fiat in B2B trade.

Alibaba's project is also in line with its broader investments in AI and digital commerce. The company

through subscription fees, potentially charging $20 per month or $99 annually for AI Mode. At the same time, JPMorgan's participation in tokenization as a mainstream financial innovation, especially as traditional banks face competition from decentralized finance (DeFi) platforms.