Hyundai Card, the credit card and financial services subsidiary of Hyundai Motor Group, has completed its first cross-border, stablecoin-based remittance pilot between its overseas subsidiaries.

 

The pilot, designed in two stages, involved Hyundai Card testing cross-border payments between its subsidiaries in the United States and Mexico using stablecoins. Specifically, Hyundai Motor America converted $20,000 into Tether (USDT), which was then sent to Hyundai Mexico, where the stablecoin was converted back into U.S. dollars.

 

According to Hyundai Card, the pilot was significant because it used stablecoin technology for an actual intercompany settlement at the multinational level. The entire process, from payment to settlement verification, took an average of 7 minutes, compared with conventional bank transfers, which often take 3 to 4 hours.

 

Hyundai Card was not the only company involved in the pilot. Stablecoin issuer Tether, blockchain platform Avalanche, and blockchain payments infrastructure provider Axiym were also identified by the card issuer as partners in the project.

 

Together, the companies developed an operational framework to identify and manage potential issues that could arise during live cross-border transactions. Meanwhile, Hyundai Card worked with Hyundai Motor to review the accounting, tax, legal, and internal control requirements for the stablecoin-based settlement infrastructure.

 

Following the success of the first pilot, Hyundai Card plans to conduct the second stage with its European subsidiaries later this month. In the second pilot, the company will test the practicality of stablecoin-based payments in local currencies and evaluate potential cost savings from lower foreign exchange expenses.

 

Although Hyundai is the first major South Korean company to conduct a stablecoin pilot of this kind, the move comes as large industrial companies, including automakers, are increasingly adopting and integrating blockchain technology into their operations.

 

In April, Mitsubishi, one of Japan's largest industrial companies, adopted JPMorgan's Kinexys blockchain network for its cash management system. According to Kazuyoshi Kawakami, Mitsubishi's treasurer, the move is intended to strengthen the company's liquidity management framework and ensure cash flows efficiently across its global subsidiaries.