PetroChina Probes Stablecoins Amid China's Regulatory Tightrope

PetroChina has revealed it is considering the potential use of stablecoins for cross-border payments, with the company’s board of directors announcing that it is monitoring developments related to Hong Kong’s stablecoin issuer licenses and planning to conduct feasibility studies. The initiative was disclosed during the company’s mid-year results conference, where it stated its interest in exploring how stablecoins could support international trade, particularly in terms of facilitating settlements and reducing currency exchange risks [1].

This move aligns with broader regulatory and market trends in Hong Kong, where the Hong Kong Monetary Authority (HKMA) recently implemented the Stablecoin Ordinance on August 1, 2025, to regulate stablecoin issuers. The new framework includes a six-month transition period for interested institutions to submit license applications, with the first licenses expected to be issued by the end of 2025. Companies such as JD Coin, Ant Group, and Standard Chartered have already signaled interest in entering the space. PetroChina’s decision to assess the viability of stablecoin payments for cross-border transactions could place it among the first state-backed entities in China to explore such applications [1].

The potential use of stablecoins by large enterprises like PetroChina is being viewed through a global lens, as both the U.S. and Hong Kong have introduced regulatory frameworks that could serve as blueprints for similar initiatives elsewhere. In particular, a pilot project by the Shenzhen Metro Line 8 and Xiongdi Technology demonstrated that stablecoins could significantly reduce exchange rate losses in cross-border transactions compared to traditional SWIFT transfers. Given PetroChina’s extensive international operations, involving nearly 300 million tons of hydrocarbon traded across more than 50 countries annually, the firm’s exploration of stablecoins could have significant implications for efficiency and cost reduction in its supply chain operations [1].

However, the Chinese government remains cautious about the broader adoption of stablecoins. Earlier in August, regulators launched a trial of renminbi-backed stablecoins, aiming to reduce reliance on the U.S. dollar in global trade. Yet, the following day, officials reportedly instructed state-owned firms to halt stablecoin research, citing concerns over fraud and instability. This regulatory hesitation reflects broader debates about the risks associated with stablecoins, particularly when used for speculative purposes. Former Chinese central bank governor Zhou Xiaochuan recently emphasized the need for a “multidimensional assessment” of stablecoin utility and warned against the systemic risks they could pose if misused [2].

In parallel, Hong Kong’s digital asset industry is undergoing a transformative phase, marked by the official launch of the Hong Kong Virtual Assets Listed Companies Association (HKVALA) in August 2025. The association, which includes over 50 listed companies from Hong Kong, A-shares, and U.S. stocks, aims to strengthen regulatory-industry synergy and foster ecosystem collaboration. HKVALA’s mission aligns with Hong Kong’s broader strategy to become a global digital asset innovation hub, leveraging its regulatory framework and policy advantages to promote compliant innovation in areas such as stablecoins and real-world asset (RWA) tokenization [3].

PetroChina’s initiative reflects both the opportunities and uncertainties facing stablecoins in a rapidly evolving regulatory landscape. As the company moves forward with its feasibility studies, it will need to navigate not only technical and operational challenges but also the broader geopolitical and economic implications of adopting stablecoins for cross-border trade. The outcome of these efforts could influence how other state-owned enterprises in China approach digital currencies and their integration into global financial systems.

Source:

[1] PetroChina Eyes Hong Kong Stablecoin License: Report (https://crypto.news/petrochina-eyes-hong-kong-stablecoin-license-report/)

[2] Former China Central Bank Governor Urges Caution Amid Stablecoin Frenzy (https://www.scmp.com/economy/china-economy/article/3323414/former-china-central-bank-governor-urges-caution-amid-stablecoin-frenzy)

[3] Empowering Hong Kong as a Global Digital Asset Innovation Hub: Official Launch of the Hong Kong Virtual Assets Listed Companies Association (https://www.prnewswire.com/apac/news-releases/empowering-hong-kong-as-a-global-digital-asset-innovation-hub-official-launch-of-the-hong-kong-virtual-assets-listed-companies-association-302540970.html)