Alibaba and JPMorgan Plan Tokenized B2B Payments by 2025

Alibaba and JP Morgan have announced a joint venture to launch a tokenized B2B payment system. With plans to implement innovative blockchain and AI technologies, the system aims for a December 2025 launch.

Alibaba Group, led by Kuo Zhang, and JPMorgan are spearheading the project. The initiative will employ JPMorgan’s existing infrastructure to automate cross-border transactions, particularly benefiting global SMEs. Kuo Zhang, President, Alibaba.com, stated, “We are building a tokenized, stablecoin-like payment system leveraging JPMorgan’s infrastructure and AI to automate cross-border transactions for global SMEs.”

This development is expected to dramatically impact enterprise cross-border payments, offering increased speed and cost-efficiency. The projected system hopes to process annual volumes in the billions, utilizing tokenized U.S. dollars and euros.

Financial implications of this move are significant, aligning with the projected $4.5 trillion value of the cross-border blockchain payments market by 2025. The initiative emphasizes institutional-grade compliance with applicable laws.

Regulatory concerns emphasize the need for compliance with cross-border payment regulations, with possible adoption expected for 81% of global blockchain initiatives. The system will remain closed until launch.

These efforts might influence the approach of traditional institutions toward digital payments and tokenized currencies. The strategic focus includes integrating central bank currencies and reducing transaction errors through AI.