Alipay has rejected claims that its payment network can be used to buy cryptocurrency, after the decentralized trading platform Peer announced beta support for purchasing and selling the USDC stablecoin with Chinese yuan payments. The conflicting accounts leave open the question of how the feature functions without the payment giant's approval.
Alipay Calls Claims 'False and Unauthorized'
In a statement on October 28, Alipay said it does not support virtual currency trading or related services. The company described claims that it enables crypto purchases on third-party platforms as "false and unauthorized," and urged users to exercise caution to protect their funds and account safety.
The warning came a day after Peer announced beta support for buying and selling USDC using yuan payments through Alipay. Under the advertised feature, users pay sellers in yuan to obtain USDC, or sell their USDC and receive yuan in return.
Alipay's response indicates it has neither approved nor partnered with Peer on the service. That has raised concerns about whether users can rely on Alipay to complete payments for USDC trades, even though Peer offers the feature on its own platform.
How Peer Says the Service Works
Peer said the service had been running since August 21, before the public beta announcement. The platform reported 107 completed trades involving 45 buyers, with a total trading value of about $7,094.
Peer also said it has no formal partnership with Alipay. According to the company, the service relies on payments between individual users alongside an onchain system for transferring USDC. In that setup, a seller places USDC in a smart contract, and the stablecoins are released to the buyer's wallet once the buyer's yuan payment is confirmed.
The trading figures were provided by Peer and have not been independently confirmed by Alipay.
China's Restrictions Remain in Place
Alipay's warning comes as Chinese authorities continue to restrict cryptocurrency trading and related financial services. Regulators have repeatedly stated that cryptocurrencies are not legal tender and have taken steps to limit crypto-related payments.
Against that backdrop, users may be concerned about the safety of their funds and whether crypto-related payments could put their Alipay accounts at risk. Peer likewise faces questions about how its USDC service can operate without Alipay's approval or an official partnership.
