Hyundai Card and Hyundai Motor announced on the 9th that they completed a proof-of-concept for stablecoin-based remittances between overseas subsidiaries and are ready for actual business implementation. The companies verified the technology's viability in real international remittance environments, moving beyond simple technical validation. Phase 2 testing with European subsidiaries is scheduled to begin at the end of this month, expanding the scope to include local currency transactions and cost reduction verification.
Hyundai Motor Completes 7-Minute Cross-Border Transfer Between US and Mexico Subsidiaries
Hyundai Card stated on the 9th that it completed a stablecoin-based international remittance proof-of-concept between Hyundai Motor's US and Mexico subsidiaries. The first phase involved Hyundai Motor America (HMA) converting $20,000 to USDT (Tether), transferring it to Hyundai Motor Mexico (HMM), and converting it back to dollars.
According to Hyundai Card, the entire process including international transfer and verification averaged 7 minutes. This represents a significant reduction compared to traditional bank-to-bank international remittances, which typically take 3-4 hours or more.
The PoC was conducted based on actual settlement operations between overseas subsidiaries that occur in real international business, rather than simply testing blockchain technology. Hyundai Card emphasized that the company comprehensively reviewed regulations related to accounting, taxation, legal, and internal controls, considering various variables that may arise during the remittance process. The company designed the remittance structure, roles, and operational processes together with Hyundai Motor.
Participants in the first phase PoC included Hyundai Card, Hyundai Motor's US and Mexico subsidiaries, stablecoin issuer Tether, and blockchain platform Avalanche.
Phase 2 Targets European Subsidiaries With Local Currency Transactions
The second phase PoC scheduled to begin at the end of this month will target Hyundai Motor's European subsidiaries. The company plans to verify cost reduction effects by conducting actual remittances based on local currencies rather than dollars. Global partners Circle and Visa will participate in this phase.
Hyundai Card plans to expand the review of stablecoin utilization possibilities across Hyundai Motor Group's global network, including settlement and fund transfers between overseas subsidiaries.
A Hyundai Card official stated, "This PoC is meaningful in that we have completed preparations to a level where actual implementation is possible, beyond simple technical verification. We will continue to expand various business models utilizing stablecoins, including international remittance and payment infrastructure."
FAQ
What did Hyundai Card and Hyundai Motor complete on the 9th?
Hyundai Card and Hyundai Motor announced on the 9th that they completed a proof-of-concept for stablecoin-based remittances between Hyundai Motor's overseas subsidiaries. The first phase involved a $20,000 USDT transfer between US and Mexico subsidiaries that averaged 7 minutes for completion.
When will Hyundai Card conduct Phase 2 testing?
Phase 2 testing is scheduled to begin at the end of this month, targeting Hyundai Motor's European subsidiaries. This phase will conduct actual remittances based on local currencies rather than dollars to verify cost reduction effects, with participation from Circle and Visa.
