Hyundai Card, Hyundai Motor Complete Stablecoin Remittance Pilot Between Overseas Units
Summary
- Hyundai Card and Hyundai Motor said they had completed a proof-of-concept (PoC) for remittances between overseas affiliates using stablecoins and had begun building infrastructure for actual deployment.
- In the test, which included Tether, Avalanche and Axym, international remittance and settlement took an average of seven minutes, confirming the technology’s speed and efficiency compared with traditional banking networks.
- Circle and Visa will join the second PoC scheduled for later in July, and Hyundai Card said it will continue reviewing the adoption of stablecoins in settlement and fund-transfer systems among overseas affiliates worldwide, while expanding related international remittance and payments business opportunities.
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Hyundai Card and Hyundai Motor Co. have completed a proof-of-concept for remittances between overseas affiliates using stablecoins and have begun building infrastructure for a real-world rollout.
Hyundai Card said July 9 that it completed the first phase of the pilot involving transfers between Hyundai Motor’s US and Mexican units. A second phase is scheduled to begin later in July among Hyundai Motor affiliates in Europe.
In the first test, Hyundai Motor America converted $20,000 into Tether’s dollar-pegged stablecoin, USDT, and sent it to Hyundai Motor’s Mexico unit, where it was converted back into dollars.
The test, conducted with Tether, Avalanche and Axym, showed that international remittance and settlement took an average of seven minutes. Hyundai Card said that confirmed the technology’s speed and efficiency versus cross-border transfers through traditional banking networks, which typically take at least three to four hours.
For the pilot, Hyundai Card and Hyundai Motor jointly reviewed legal and regulatory requirements in advance, including accounting, tax, legal and internal-control issues at overseas units. The companies also designed the process themselves. Hyundai Card said the effort went beyond a simple blockchain test and examined broader risks that could arise in actual intercompany settlement.
The second phase, set for later in July, will cover Hyundai Motor’s overseas affiliates in Europe. The companies plan to carry out actual remittances using local currencies including the euro and assess overall economic benefits, including cost efficiency in foreign-exchange conversion. Circle and Visa will participate in that phase as partners.
Based on the results, Hyundai Card plans to continue reviewing whether stablecoins can be adopted for settlement and fund-transfer systems across Hyundai Motor Group’s overseas units worldwide. A Hyundai Card official said the pilot was meaningful because it involved designing and validating infrastructure suitable for real business use, rather than merely testing the technology. The company added that it will continue expanding business opportunities in international remittances and payments using stablecoins.
