Hyundai Motor, the leading automotive manufacturer in South Korea, has conducted a successful test utilizing stablecoins for international payments through the Avalanche network. This pilot program involved a transfer of $20,000 from Hyundai Motor America to its subsidiary in Mexico, Hyundai Motor Mexico.
During this transaction, the funds were converted to USDT, a stablecoin issued by Tether, before being transferred via Avalanche and converted back to US dollars upon receipt. The entire process, from initiation to verification, took approximately seven minutes, significantly faster than the three to four hours typical of traditional banking methods.
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The pilot program was not limited to performance metrics but also encompassed considerations of accounting, tax, legal, regulatory compliance, and internal controls relevant to cross-border payments. Collaborating with Hyundai Card, the company structured the transaction workflow, task delegation, and operational processes to facilitate the use of stablecoins in international transactions.
- Participants included Hyundai Motor's US and Mexican subsidiaries, Tether, Avalanche, and Axelar.
Hyundai emphasized that this pilot was not merely an experimental exercise but a genuine business transaction using stablecoins. Furthermore, reports indicate that the company is planning a second pilot program in Europe, which will involve Circle and Visa, aiming to commence by the end of the month.
This material is informational and not financial advice.
