What is Alibaba (BABAON) Coin? A Comprehensive Guide

Alibaba (BABAON) coin is a tokenized security that represents a 1:1 ownership of Alibaba Group (BABA) stock, brought on-chain by the real-world asset (RWA) platform Ondo Finance. This innovation effectively bridges the gap between traditional equity markets and the decentralized finance (DeFi) ecosystem. Following the announcement of the BABAON token listed on WEEX, trading for the BABAON/USDT pair officially commenced on September 12, 2025, opening up new avenues for global investors to access blue-chip stocks with the flexibility of digital assets. From my experience tracking the RWA sector, this represents a significant move toward making traditional finance more composable and accessible 24/7.

What is Alibaba (BABAON) Coin?

Alibaba (BABAON) is a tokenized asset fully backed by and redeemable for a share of Alibaba (BABA) stock. Issued on the Ethereum blockchain, it functions as an ERC-20 token, which allows it to be seamlessly integrated into the vast world of DeFi protocols. Unlike traditional stocks that trade during specific market hours, BABAON can be traded anytime, anywhere on crypto exchanges. The core idea is to unlock the value held in traditional securities, allowing them to be used as collateral for loans, for yield farming, or simply to be traded with greater efficiency. This initiative by Ondo Finance is part of a growing trend of tokenizing real-world assets—a market I've seen evolve from a niche concept to a multi-billion dollar industry.

Who Created Alibaba (BABAON) Crypto?

BABAON was created by Ondo Finance, a prominent player in the RWA space. Ondo's mission is to bring institutional-grade financial products on-chain, making them accessible to a broader audience. The team behind Ondo Finance consists of veterans from traditional finance giants like Goldman Sachs and leading crypto institutions. As I've followed their progress on platforms like Twitter, it's clear their strategy is meticulously designed to adhere to regulatory standards while pushing the boundaries of financial innovation. They partner with qualified custodians to hold the underlying assets, ensuring that each token is fully collateralized and transparently managed. This commitment to security and compliance is what sets them apart and builds trust within the ecosystem.

How Does Alibaba (BABAON) Crypto Work?

The mechanism behind BABAON is both straightforward and secure. For every BABAON token minted, Ondo Finance purchases one share of BABA stock and holds it with a third-party, regulated custodian. This 1:1 backing is verifiable on the blockchain through the token's contract address.

When an investor wants to redeem their BABAON, Ondo Finance burns the token and instructs the custodian to release the corresponding BABA share. This process ensures the token's value remains pegged to the stock's market price. By leveraging blockchain technology, Ondo provides unprecedented transparency, allowing anyone to audit the reserves and confirm the backing. This model eliminates the settlement delays and geographical restrictions common in traditional finance, offering a more efficient and globalized investment vehicle.

How is Alibaba (BABAON) Coin Used?

The use cases for BABAON extend far beyond simple ownership of Alibaba stock. Its primary advantage is its native integration with DeFi. Token holders can use BABAON as collateral on lending platforms like Aave or Compound to borrow other digital assets. It can also be supplied to liquidity pools on decentralized exchanges to earn trading fees, a practice known as yield farming. Furthermore, BABAON allows for fractional ownership, enabling investors to buy a small portion of a BABA share, which might otherwise be prohibitively expensive. The 24/7 trading availability on platforms like WEEX means investors can react to market news instantly, rather than waiting for stock exchanges to open.

How Do You Buy Alibaba (BABAON) Token?

Since its launch, acquiring BABAON has become more accessible. The token is available for trading on WEEX, a leading cryptocurrency exchange. If you're looking to add this tokenized stock to your portfolio, I've outlined the simple steps below.

First, you need an account on the exchange. You can register for a WEEX account or log in if you already have one. The process is quick and designed to get you started without delay.

Once your account is funded, you can navigate to the spot trading section. Here, you will find the BABAON/USDT trading pair. Simply place a buy order for the amount you wish to purchase, and you can begin trading immediately. To make it even easier, you can go directly to the BABAON/USDT trading page to start.

Is Alibaba (BABAON) Coin a Good Investment?

Evaluating BABAON as an investment requires a dual perspective: one on Alibaba as a company and another on the RWA sector's growth. The token's value is directly tied to BABA's stock performance. As a global tech giant with dominant positions in e-commerce and cloud computing, Alibaba has strong fundamentals. However, like any stock, it is subject to market volatility, geopolitical tensions, and regulatory changes.

From a crypto-native perspective, the potential lies in the growth of RWAs. As I've analyzed in my research, the tokenization of real-world assets is projected to become a multi-trillion dollar market. Investing in BABAON is also a bet on this trend—that assets on-chain will become more valuable due to their enhanced utility, liquidity, and accessibility.

However, risks are involved. Smart contract vulnerabilities, though rare for established projects like Ondo, are always a possibility. Furthermore, the regulatory landscape for tokenized securities is still developing, which could introduce uncertainty. In my view, BABAON is a compelling investment for those looking to diversify their portfolio by blending traditional equities with the advantages of crypto. It offers exposure to a blue-chip stock while serving as a gateway to the innovative world of DeFi. As always, investors should conduct their own research and consider their risk tolerance before investing.

DISCLAIMER: WEEX and affiliates provide digital asset exchange services, including derivatives and margin trading, only where legal and for eligible users. All content is general information, not financial advice-seek independent advice before trading. Cryptocurrency trading is high-risk and may result in total loss. By using WEEX services you accept all related risks and terms. Never invest more than you can afford to lose. See our Terms of Use and Risk Disclosure for details.