China’s NPC Explores Stablecoins For Cross-Border Payment as RLUSD Taps Singapore Market

China’s National Petroleum Corporation has announced plans to explore stablecoin as a new approach to cross-border settlement through its state-backed enterprises. This comes as Ripple’s RLUSD gains ground in Singapore, with the firm investing in stablecoin company Tazapay.

PetroChina Eyes Stablecoins for Energy Trade

According to a local media report, PetroChina confirmed it is studying the feasibility of using stablecoins for cross-border payments. Speaking at its semi-annual results conference, the company’s Chief Financial Officer revealed that PetroChina is monitoring Hong Kong’s new stablecoin. 

He shared that they would monitor their licensing framework and evaluate settlement models that could facilitate international transactions more easily. Given that one of China’s largest state-owned energy conglomerates is entering the financial innovation space under Hong Kong’s regulatory purview, this development is particularly significant.

PetroChina’s exploration builds on successful pilot projects already underway. In Shenzhen, a stablecoin exchange system developed by Xiongdi Technology has enabled on-chain swaps between the Hong Kong dollar and China’s digital yuan. This reduces exchange rate losses and processing over 100,000 transactions daily.

This comes after it was reported that China is weighing the introduction of yuan-backed stablecoins. This is part of its efforts to expand the international use of its currency. If approved, this would mark the first time Beijing allows the issuance of stablecoins pegged to the yuan.

However, it was met with some pushback within its own policy circles. Former People’s Bank of China (PBOC) Governor Zhou Xiaochuan warned that such assets could pose a risk to the nation’s financial stability. He contended that stablecoins might instead create new vulnerabilities rather than bolster China’s economic system.

Ripple’s RLUSD Taps Singapore Market

In other developments, Ripple’s RLUSD has extended its reach in Asia. Singapore fintech Tazapay recently announced the close of its Series B funding round. This was backed by Circle Ventures, Ripple, and Peak XV Partners. 

The firm’s annualized payment volume has already surpassed $10 billion, representing a 300% year-over-year growth. Tazapay supports both virtual bank accounts and stablecoin transactions. This positions itself as a key gateway for RLUSD’s expansion in Singapore. 

Ripple and Circle already hold Digital Payment Token licenses issued by the Monetary Authority of Singapore. Tazapay confirmed it also intends to apply for its own permit. This reinforces the city-state’s status as a hub for regulated stablecoin adoption.

Meanwhile, RLUSD has officially launched it in the Japanese market today. The rollout is being carried out in collaboration with Ripple’s long-standing partner, SBI Holdings. They had earlier this month revealed plans to integrate RLUSD into its platform.

The momentum behind stablecoins in Asia is undeniable. Hong Kong’s regulatory framework could help reshape the execution of cross-border transactions in the coming years.

Thanks to RLUSD’s expanding adoption, the stablecoin is close to breaking into the top 100 crypto assets by market cap. CoinMarketCap data shows that the stablecoin currently ranks as the 102nd largest crypto by market cap.