Peer Launches Alipay-Funded USDC Trading Beta on Base With Escrow Protection

Peer's beta marketplace lets users exchange Chinese yuan for USDC through Alipay payments and escrow settlement on Base.

Peer has introduced a beta feature allowing users to buy and sell USDC through Alipay-funded peer-to-peer transactions, with the cryptocurrency held in escrow on Base until payment is verified. The service enables buyers to send Chinese yuan directly to individual sellers and receive USDC in their wallets after completing the verification process.

The marketplace announced the feature on Oct. 27, stating that Alipay was available on Peer in beta. Sellers can also list USDC and receive yuan through Alipay. The platform's interface identifies CNY as the payment currency, Alipay as the payment method and USDC as the asset delivered to buyers.

Peer's Chinese-language buyer guide explicitly states that the marketplace has no official partnership with Alipay. Users are trading with individual sellers rather than purchasing USDC directly from Alipay.

How Peer Uses Escrow for Alipay Transactions

Under the process described in Peer's documentation, sellers first deposit USDC into an escrow contract on Base. When a buyer opens an order, the seller's tokens are reserved and cannot be withdrawn while the transaction remains active.

The buyer then transfers yuan directly to the seller's Alipay account. Once the payment has been verified, the escrow process releases the corresponding USDC to the buyer's wallet.

Peer says its protocol validates payment evidence offchain and converts it into a signed attestation. An onchain verifier checks the signature and payment details against the order before authorizing the release. The system also prevents the same payment from being reused and limits the amount released to the value specified in the order.

According to the buyer guide, users can verify Alipay payments through Peer's mobile application or, when using the web version, through its PeerAuth browser extension.

Trading Limits and Service Fees

New Alipay listings created through Peer's web application have order limits ranging from 5 to 500 USDC, according to the buyer guide. Each of these listings accepts one order, although older listings may operate under different limits.

Buyers face a service fee of up to 0.95%. The quoted trading price also incorporates the seller's spread, meaning the displayed price includes the seller's pricing margin in addition to the service fee.

Peer's terms of service identify P2P Labs as the provider of its website and application, distinguishing those interfaces from the underlying protocol.

China's Crypto Restrictions Remain in Effect

The introduction of escrow-based settlement does not remove the regulatory restrictions applicable to cryptocurrency-related business in China.

A Feb. 6 notice issued by China's central bank and seven other authorities prohibits onshore fiat-to-crypto exchange businesses. The notice also bars financial institutions, including nonbank payment providers, from supplying fund transfers, clearing or settlement services for crypto-related business activities.

Alipay's published merchant rules separately list virtual-currency trading among the business activities it does not support. Peer also requires users to comply with applicable laws and warns in its terms that its products may not be available or appropriate in every jurisdiction.

The beta therefore introduces a peer-to-peer payment option with an escrow-based release process, but users remain responsible for considering the legal restrictions and platform terms that apply to their location and transactions.

source: thedefiant

Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.