Alibaba's financial technology arm collaborates with Singapore's major banks to promote tokenization pilot projects, accelerating innovation in cross-border payments.

Signs of internet giants returning to the Crypto Assets field have emerged. Recently, a fintech company closely related to Alibaba collaborated with Singapore's largest bank to launch a pilot program called "Treasury Token."

The plan aims to help the fintech company shorten the settlement time for internal transactions from several days to just seconds, thereby optimizing liquidity and working capital management. The company also stated that they see potential application scenarios in areas such as instant tax refund services and cross-border payments for small and medium-sized enterprises.

The cooperating bank is an important pillar of Singapore's financial industry, and its name has also become a reference for the naming of many domestic banks. This bank collaborates with a fintech company that possesses a large number of cross-border trading merchant resources, which may promote the large-scale cross-border trade to adopt tokenization for real-time settlement, potentially bypassing traditional international payment systems.

The support for this project comes from an important initiative led by Singapore's financial regulatory authority. The initiative aims to enhance liquidity and efficiency in financial markets through asset tokenization, and this collaboration is a specific application scenario of that initiative.

It is worth noting that the members involved in the formulation of this program's policies include central banks and financial regulatory agencies from several European and Asian countries, but do not include relevant organizations from the United States. This may suggest an effort to seek balance in the international financial system.

Financial innovation in Singapore does not stop here. The country is also exploring the possibility of issuing a central bank digital currency, namely "Digital Singapore Dollar". The issuance mechanism of the Singapore Dollar is different from many countries, as it relies on the country's large foreign exchange reserves, giving it characteristics similar to a stablecoin.

In the related plan, the central bank of Singapore is responsible for issuing digital currency, while commercial banks play the role of exchanges, responsible for currency conversion. The main participants in this plan are local institutions in Singapore.

In summary, Singapore appears to be promoting the development of its currency towards crypto stablecoins for domestic institutional settlement. At the same time, in the field of international trade, Singapore is collaborating with multiple Eurasian countries to explore new methods of international settlement. Multinational trade institutions, such as this fintech company, play an important role in developing application scenarios.