P2P crypto platform Peer opened a beta that lets users buy and sell USDC for Chinese yuan via Alipay. Buyers pay sellers in CNY through Alipay, while the USDC sits in an onchain escrow contract and is released once the payment is verified.

Peer said 45 buyers have completed 107 such orders since August 21, with a combined volume of about $7,094.

Alipay responded that it does not support virtual currency trading or related services. It called third-party claims of Alipay support for crypto purchases false and unauthorized, and warned users to protect their funds and accounts.

China keeps a ban on crypto trading, so the dispute puts the P2P fiat on-ramp model under direct pressure from the country's largest payment app.