China National Petroleum Corporation (CNPC), one of the world’s largest energy companies, announced at its half-year results conference that it will study the feasibility of cross-border settlement through stablecoins. The move comes as Hong Kong finalizes its regulatory framework for virtual assets.
The Hong Kong Monetary Authority (HKMA) introduced the Stablecoin Ordinance on August 1, requiring issuers to register locally and hold at least HK$25 million in capital. Institutions have until September 30 to apply within a six-month transition period.
The ordinance aims to ensure compliance while fostering innovation in digital finance. By building clear rules, Hong Kong hopes to strengthen its role as a global financial hub. Regulators emphasized no licenses have yet been issued, highlighting a strict but inclusive stance. This combination provides traditional companies such as CNPC a safe environment to test digital solutions without exposure to unregulated risks.
Stablecoins demonstrate technical advantages
The growing interest in stablecoins reflects their practical benefits for global trade. Pilot programs in China have already shown their potential. For instance, a stablecoin system tested in Shenzhen’s metro reduced exchange rate losses and processed over 100,000 daily transactions. In another project, stablecoins achieved faster confirmation times than the traditional SWIFT network, cutting costs and boosting efficiency.
In case of CNPC, for which enormous foreign trade volumes are executed, direct settlement through stablecoins may reduce reliance on costly intermediaries. Analysts note that matching stablecoins and digital RMB has enormous potential in the offshore market currently worth some one trillion yuan. Settlement through stablecoins of energy may reduce exchange rate volatility and delay in transactions.
Analysts think that CNPC can learn from its foreign pilot experiences, like those it has conducted in the United Arab Emirates, to trial dual models blending digital RMB and commodity-related stablecoins. Pilot programs of this sort would make Hong Kong a major hub for digital settlement in cross-border energy trade.
Financial institutions prepare infrastructure
The banking industry in Hong Kong has also advanced further to build infrastructure for stablecoin usage. Standard Chartered teamed up with other companies for the creation of a Hong Kong dollar stablecoin, while HSBC introduced tokenized deposits for treasury corporate solutions. ZhongAn Bank was the first digital bank in Hong Kong that provided stablecoin issuers with custody solutions.
This early investment creates a service chain among regulation, custody, and payment. It also makes a clear declaration of institutional support, and this has paved the way for physical enterprises like CNPC to connect into digital solutions. Investors have shown a positive attitude, and stablecoin-related stocks surged in China’s A-share market, mainly among energy- and finance-related companies.
While no timeline has come from CNPC, its entry into stablecoins is a testament to the strategic importance of payment innovation. With regulators and banks proceeding with further preparations and digital settlement of commodity trade closer to a reality, cross-border payments might be at the beginning of a new era.
