Avalanche Powers Hyundai Stablecoin Pilot

Seven-Minute Settlement on Avalanche

Hyundai Card has completed its first real-world proof-of-concept (PoC) for stablecoin-based cross-border payments, using Tether's $USDT on the Avalanche network. Hyundai Motor America converted $20,000 into USDT, which was transferred to its Mexico office and then converted back into dollars. The entire process, from payment to settlement verification, took an average of seven minutes, compared with the three to four hours typically required for conventional bank transfers.

Three partners made the pilot possible. Tether provided the stablecoin, Avalanche served as the blockchain rails for the transfer, and Axiym, a blockchain payment infrastructure provider, handled the connectivity between all parties.

Hyundai Card noted that the test marks the first stablecoin-based cross-border transfer PoC by a Korean card company using stablecoins for an actual intercompany remittance. The project also involved building the operational framework needed to manage potential issues during live cross-border transactions, including a review of accounting, tax, legal and internal control requirements while designing the settlement structure for transactions between overseas units.

Europe Next, With Visa and Circle on Board

A second PoC will begin later this month among Hyundai Motor subsidiaries in Europe, with additional global partners including Circle and Visa set to join. Moving value across European offices means dealing with euros, pounds, and potentially other local currencies, introducing foreign exchange conversion costs, which is precisely what Hyundai Card wants to evaluate.

The pilot adds to a growing list of institutional tests of stablecoin payment rails. For large corporates managing frequent intercompany flows across borders, the speed and cost gap versus traditional transfers is hard to ignore. Following the trials, Hyundai Card said it plans to explore broader applications of stablecoins, including settlements, treasury management and fund transfers across Hyundai Motor Group's global operations.

Sources:
The Block: Hyundai Card completes its first real-world stablecoin pilot with Avalanche, Tether
Korea Herald: Hyundai Card tests stablecoin transfer for Hyundai Motor units
Korea Times: Hyundai Card tests stablecoin in live cross-border corporate payment