PetroChina disclosed that it is monitoring the developments of Hong Kong’s stablecoin issuer license and plans to initiate feasibility studies on stablecoin payments.
Summary
- PetroChina is officially looking into stablecoin issuer licenses and conducting feasibility studies on the use of stablecoins in cross-border trade.
- China appears to be on the fence about issuing their own yuan-backed stablecoins, but has exhibited a warmer stance as of late.
According to local media reports, PetroChina is currently monitoring the recent developments regarding stablecoin issuer licenses from the Hong Kong Monetary Authority. PetroChina’s board of directors disclosed the information during its mid-year results conference.
At the moment, the China National Petroleum Corporation subsidiary company’s CFO and secretary to the board of directors said that the firm plans to conduct feasibility studies on cross-border settlements and payments facilitated through stablecoins.
This statement means that China’s state-owned energy company is interested in joining the stablecoin race through Hong Kong’s licensing venture. Hong Kong’s Stablecoin Ordinance, a framework for regulating stablecoins and its issuers, came into effect on August 1.
Since then, companies like JD Coin, Ant Group, Standard Chartered and Telecom have been declaring their interests in registering for a stablecoin issuer, with plans to issue yuan-backed stablecoins. So far, the HKMA has confirmed that no licenses have been issued yet.
With the rise in industry player demand for stablecoin issuer licenses, the HKMA has established a six-month transition period and urged interested institutions to submit applications by September 30. Traders predict the first batch of licenses to be officially issued before the end of 2025.
PetroChina mulls stablecoins amidst China’s own dilemma
The CNPC is one of the first state-actors in China that is currently looking to issue a yuan-backed stablecoin. PetroChina is expected explore the use of stablecoins for cross-border settlements to aid in international trade.
In the wake of the global stablecoin wave, initiated by the U.S’ GENIUS Act and the Stablecoin Ordinance, China has been encouraging its state-owned industries to delve deeper into stablecoins and their potential benefits.
For instance a pilot project conducted by the Shenzhen Metro Line 8, Xiongdi Technology’s on-chain exchange system, proved that stablecoins significantly reduced exchange rate losses in cross-border transactions compared to traditional transfers via SWIFT.
Therefore, stablecoins could prove to be increasingly beneficial for companies like China National Petroleum Corporation, which has an annual trade volume averaging nearly 300 million tons of hydrocarbon in over 50 countries.
However, China has been on the fence about developing stablecoins. Earlier in August, regulators began testing renminbi-backed stablecoins in an effort to combat the U.S. dollar. Only a day later, the Chinese government urged state-owned firms to stop discussing the subject and to halt all research due to fears that stablecoins could be exploited for fraudulent acts.
Although most recently, the nation has been showing a warmer stance as it seeks offset the U.S. dollar’s dominance in the global markets. Officials are reportedly seeking input from experts on how to issue and implement stablecoins pegged to the renminbi. Japan and South Korea have also made similar moves to advance their own stablecoins pegged to local currency.
