By cryptoadmin Hyundai Motor, South Korea’s largest automaker, tested the use of stablecoins in its internal cross-border payment processes by conducting a $USDT transfer over the Avalanche network.
As part of a pilot program conducted by Hyundai Card, a transfer of $20,000 was made from Hyundai Motor America, Hyundai Motor’s US subsidiary, to Hyundai Motor Mexico, its Mexican subsidiary. During the transaction, the dollars were first converted to $USDT issued by Tether, sent to the Mexican unit via the Avalanche network, and then converted back to dollars.
According to information shared by the company, the transfer and verification process took an average of seven minutes to complete. Similar cross-border transactions conducted through traditional banking channels can take longer than three to four hours.
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The pilot study evaluated not only the technical performance of the blockchain infrastructure but also the accounting, tax, legal, regulatory compliance, and internal control requirements that international companies might encounter in their payment processes. Hyundai Card, in collaboration with Hyundai Motor, designed the transaction structure, task allocation, and operational processes to enable stablecoin transfers between subsidiaries in different countries.
Hyundai Motor’s US and Mexican subsidiaries, as well as Tether, Avalanche, and blockchain-based payment infrastructure provider Axelar, participated in the study.
Hyundai stated that the pilot program was not merely an experimental technology test and that stablecoins were being used in a real business-to-business payment transaction.
Hyundai Motor is also reportedly preparing to launch a second stablecoin transfer pilot in Europe with the participation of its subsidiaries Circle and Visa, with plans to start this initiative by the end of the month.
*This is not investment advice.