Hyundai Card has completed its first proof of concept (PoC) for a cross-border transaction using a stablecoin. In its announcement released on Thursday, the corporation confirmed that it completed the PoC using Tether’s USDT stablecoin on the Avalanche blockchain network.
This test case involved an actual business transaction conducted by Hyundai Motor Company’s operations in the United States and Mexico, not a hypothetical blockchain exercise.
Hyundai Card Completes $20,000 USDT Transfer
As per the statement by the company, the test run entailed the conversion of $20,000 to USDT, which would be transferred via the Avalanche blockchain to Hyundai’s subsidiary in Mexico. The stablecoins would then be converted back to U.S. dollars after that.
It took roughly seven minutes to conduct the whole process. In contrast, the firm stated that it would take three to four hours to complete the same process using an interbank transfer system.
According to Hyundai, this trial was much more than a technical exercise since it had some real business purposes, which were related to an existing obligation between companies for intercompany settlements.
A representative from Hyundai Card emphasized that this initiative was different from other blockchain experiments, as this project had a real use case connected with the company’s global business.
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Hyundai Card Managed Compliance and Payment Structure
Hyundai Card had an important role to play during the entire course of this project. It was responsible for conducting any necessary legal, regulatory, and tax reviews, as well as internal control processes and overall system design, before the transaction took place.
A blockchain payments company called Axiym also joined the pilot program.
The completion of the test shows that stablecoins are increasingly becoming a subject of exploration by major corporations as an effective means of transferring money abroad in less time.
Hyundai Card Plans Europe USDC Payment Pilot
Hyundai is gearing up for the next step in the project. In a couple of weeks’ time, the firm will conduct its second proof of concept using Hyundai Motor subsidiaries in Europe.
This time around, however, the tests will differ from the initial ones in the way that, rather than dealing with U.S. dollar payments, they will entail payments using various currencies in Europe.
The second phase will see more blockchain and payment firms joining the project. Visa and Circle, which issues the USDC stablecoin, are going to join the upcoming pilot.
A successful implementation of the solution in Europe could yield valuable information for Hyundai, as it further explores blockchain-powered payment systems for use overseas. This is part of a larger trend within global companies to utilize stablecoins to facilitate faster settlements and cross-border payments.
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