The initial public offering would have valued Ant at more than $310 billion.
The demise of $1.2 billion deal suggests U.S. officials are concerned about the data security implications of takeovers by Chinese investors.
Sesame Credit will use both online and offline data to score consumer and small-business borrowers.
Set to debut Sept. 19 on the New York Stock Exchange under the ticker symbol "BABA," Alibaba's IPO is poised to be the largest ever.
