Hyundai Motor, South Korea’s largest automaker, tested the use of stablecoins in its internal cross-border payment processes by conducting a survey. $USDT Transfer to the Avalanche network.
As part of a pilot program run by Hyundai Card, a transfer of $20,000 was made from Hyundai Motor America, the U.S. subsidiary of Hyundai Motor, to Hyundai Motor Mexico, its Mexican subsidiary. During the transaction, the dollars were first converted into $USDT Issued by Tether, sent to the Mexican unit via the Avalanche network, then converted back to dollars.
According to information shared by the company, the transfer and verification process took an average of seven minutes. Similar cross-border transactions carried out through traditional banking channels can take more than three to four hours.
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The pilot study assessed not only the technical performance of the blockchain infrastructure, but also the accounting, tax, legal, regulatory and internal control requirements that international companies may encounter in their payment processes. Hyundai Card, together with Hyundai Motor, designed the transaction structure, task allocation and operational processes to enable stablecoin transfers between subsidiaries in different countries.
Hyundai Motor’s U.S. and Mexican subsidiaries, as well as blockchain-based payment infrastructure provider Tether, Avalanche and Axelar, participated in the study.
Hyundai said the pilot program was not just an experimental technology test and that the 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, and plans to launch this initiative by the end of the month.
*This does not constitute investment advice.