Hyundai Card, the innovative card and payments arm of Hyundai Motor Group, has successfully verified stablecoin-based cross-border transfers between its Hyundai Motor subsidiaries located in the United States and Mexico.
This significant milestone marks the completion of a pioneering proof of concept (PoC) for efficient intercompany transfers utilizing stablecoins, specifically between Hyundai Motor America and Hyundai Motor Mexico.
During the test, Hyundai Motor America seamlessly converted $20,000 into stablecoins before dispatching the funds to Hyundai Motor Mexico, where they were promptly converted back to US dollars. Remarkably, the entire cross-border transfer and verification process was completed in just seven minutes. This demonstrates a monumental leap in speed and security compared to conventional international bank transfers, which often require three to four hours, as highlighted by Hyundai Card.
Key partners collaborating in this innovative stablecoin transfer test included leading stablecoin issuer Tether, cutting-edge blockchain platform Avalanche, and specialized blockchain-based payments infrastructure firm Axiym.
Hyundai Card proudly underscored that this test represents the first stablecoin-based cross-border transfer Proof of Concept (PoC) executed by a Korean card company, directly utilizing stablecoins for an actual intercompany remittance. Hyundai Card spearheaded the design of the intricate transfer structure and managed the overall process. This involved close collaboration with Hyundai Motor to meticulously review accounting, tax, legal, and internal control requirements across the overseas subsidiaries. Furthermore, the company proactively built essential infrastructure to preemptively address any potential issues throughout the transfer process.
Building on this success, a second Proof of Concept (PoC) is slated to commence later this month among Hyundai Motor subsidiaries situated in Europe. This upcoming phase will welcome additional prominent global partners, including Circle and Visa. Significantly, the next test aims to broaden the scope beyond current dollar-based transfers, exploring actual remittances in local currencies. This expansion will enable Hyundai Card to comprehensively assess the profound economic benefits of blockchain-based stablecoin transfers, particularly highlighting potential savings through optimized currency conversion.
An official from Hyundai Card emphasized the profound implications of this development: “This PoC holds immense significance as it demonstrates our progression beyond a mere technical validation, signifying that we have thoroughly prepared for potential real-world adoption of stablecoin solutions.” The official further stated, “We are committed to continuously exploring and expanding diverse business applications utilizing stablecoins, encompassing international remittance services and cutting-edge payment infrastructure.”
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