Hyundai Card and Hyundai Motor have completed a proof of concept (PoC) for remittances between overseas subsidiaries using stablecoins, laying the groundwork for commercialization.
On July 9, Hyundai Card announced that it had successfully conducted a PoC for remittances between Hyundai Motor's subsidiaries in the United States and Mexico, and plans to proceed with a PoC for its European subsidiaries.
This test is significant as it involved actual payment transactions between overseas subsidiaries using stablecoins. Previously, only technology validation experiments were conducted by some IT and fintech companies, but Hyundai Motor Group applied stablecoins to real international business transactions.
Hyundai Card explained that it not only validated the remittance technology but also comprehensively reviewed related regulations and procedures, including accounting, tax, legal, and internal controls, while designing the remittance structure and operational processes.
In the first phase of the test, Hyundai Motor's U.S. subsidiary converted $20,000 into the stablecoin USDT, sent it to the Mexican subsidiary, and then exchanged it back into dollars locally. According to Hyundai Card, the entire process, including international remittance and verification, took an average of 7 minutes, a significant reduction compared to the typical 3 to 4 hours required for traditional bank remittances.
This test involved Tether, the issuer of the dollar-based stablecoin, as well as the blockchain platform Avalanche and the blockchain payment infrastructure company Axum.
The second phase of the test, set to begin at the end of this month, will target Hyundai Motor's overseas subsidiaries in Europe. This phase will involve remittances based on local currencies rather than dollars, aiming to verify cost-saving effects and overall economic viability. The second phase will also include participation from Circle, the stablecoin issuer, and global payment company Visa.
Hyundai Card plans to explore ways to expand the use of stablecoins in various areas, including settlements and fund transfers between Hyundai Motor Group's overseas subsidiaries.
A Hyundai Card official stated, "This PoC is significant as it has prepared us for actual implementation beyond simple technology validation. We plan to continuously expand various business models utilizing stablecoins, including international remittances and payment infrastructure."
* This article has been translated by AI.
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