A new USDC trading feature has put China’s payments giant Alipay in an awkward position. Peer, a decentralized crypto trading platform, says users can buy and sell the stablecoin using Chinese yuan payments, but Alipay has denied supporting crypto transactions.
The disagreement raises questions about how the feature works without the payment giant’s approval.
On October 28, Alipay issued its warning, stating that it does not support cryptocurrency trading or related services. The company called claims that its payment network allows crypto purchases through third-party platforms “false and unauthorized” and urged users to protect their funds and accounts.
The statement came a day after Peer announced beta support for buying and selling USDC using yuan payments through Alipay. The feature allows users to pay sellers in yuan to buy USDC or sell their USDC and receive yuan in return.
However, Alipay’s response makes clear that it has not approved or partnered with Peer on this service.
Meanwhile, this has raised concerns about whether users can rely on Alipay to complete payments for USDC trades, even though Peer offers the feature on its platform.
Peer said its service had been operating since August 21, before the public beta announcement. It reported 107 completed trades involving 45 buyers, with a total trading value of about $7,094.
Peer also clarified that it had no formal partnership with Alipay. Instead, its service uses payments between individual users alongside an onchain system to transfer USDC.
Under this setup, a seller places USDC in a smart contract. Once the buyer’s yuan payment is confirmed, the stablecoins are released to the buyer’s wallet.
These figures come from Peer and have not been independently confirmed by Alipay.
Alipay’s warning comes as China continues to restrict crypto trading and related financial services. Chinese authorities have repeatedly stated that cryptocurrencies are not legal tender and have taken steps to limit crypto-related payments.
Against this backdrop, users may worry about the safety of their funds and whether crypto-related payments could put their Alipay accounts at risk.
Peer also faces questions about how its USDC service can operate without Alipay’s approval or an official partnership.
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