A system and process for integrated desulfurizing, desalting and deasphalting of hydrocarbon feedstocks is provided. A hydrocarbon feedstock, a water soluble oxidant, and a water soluble catalyst can be introduced in a oxidation zone and retained for a period of time sufficient to achieve the desired degree of desulfurization, or introduced directly into the desalting zone along with wash water. Catalyst and dissolved salt are discharged along with the wastewater effluent from the desalting zone. A hydrocarbon stream including converted hydrocarbons and oxidation by-products is passed to a deasphalting zone. In the deasphalting zone, phase separation occurs, whereby a light phase including desulfurized hydrocarbons are produced, and a heavy phase including asphaltenes and oxidation by-products are discharged, e.g., passed to an asphalt pool.