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Hyundai Card and Hyundai Motor Company have completed preparations for the implementation of stablecoins, moving beyond simple technology verification to a level where actual adoption between overseas subsidiaries is feasible.

Tae Young Chung, Vice Chairman of Hyundai Card. Hyundai Card

On July 9, Hyundai Card announced that it had completed a proof of concept (PoC) for remittances between Hyundai Motor Company’s U.S. and Mexican subsidiaries using stablecoins, and would next conduct a PoC for Hyundai Motor Company’s European subsidiaries.

This PoC is significant in that stablecoins, which have previously been used experimentally by some IT and fintech companies, have now been utilized as an actual means of remittance for intercompany billing between the overseas subsidiaries of Hyundai Motor Company, a leading Korean corporation.

Hyundai Card explained that this PoC went beyond merely verifying advanced technology and was actually carried out as settlement remittances, which frequently occur in international business. The company also developed a comprehensive infrastructure design to anticipate and address various issues that could arise throughout the remittance process. To enable stablecoin remittances between overseas subsidiaries, Hyundai Card, together with Hyundai Motor Company, thoroughly examined relevant regulations including accounting, tax, legal, and internal controls for the overseas entities, and led the PoC by designing processes such as the remittance structure, procedures, and roles.

The first PoC involved converting USD 20,000 at Hyundai Motor America (HMA) into the stablecoin USDT, remitting it to Hyundai Motor Mexico (HMM), and then converting it back to U.S. dollars. Hyundai Card reported that the entire process of international remittance and verification took an average of seven minutes, demonstrating overwhelming speed and excellent stability compared to traditional interbank wire transfers, which typically take over three to four hours.

The participants in the first PoC included Hyundai Card, Hyundai Motor America, Hyundai Motor Mexico, the dollar-based stablecoin issuer Tether, blockchain technology company Avalanche, and blockchain-based payment infrastructure provider Axiym.

The second PoC, scheduled to begin at the end of this month, will be conducted among Hyundai Motor Company’s overseas subsidiaries in Europe. Unlike the first PoC, this trial will involve remittances using local currencies other than the U.S. dollar, and will verify cost efficiency in the currency exchange process, comprehensively assessing the economic benefits of stablecoin-based remittances on the blockchain. Global partners such as Circle and Visa will participate in the second PoC.

Hyundai Card plans to explore the scalability of stablecoins in various areas such as settlement and fund transfers between Hyundai Motor Group’s overseas subsidiaries around the world, having laid the groundwork for actual remittances using stablecoins through this PoC in partnership with Hyundai Motor Company.

A Hyundai Card official stated, “The significance of this PoC lies in the fact that we have made preparations to a level where actual adoption is possible, going beyond simple technology verification,” adding, “We will continue to seek and expand a variety of businesses utilizing stablecoins, including international remittance and payment infrastructure.”

This content was produced with the assistance of AI translation services.