Hyundai has successfully executed a transaction worth $20,000 USDT from its US subsidiary to its Mexico subsidiary, representing a new phase for the company regarding the application of blockchain technology in the operation of its corporate treasury.
This was done using the Avalanche blockchain network, and the exercise aimed to see if stablecoins would speed up payments more than the normal banking process.
As reported by the firm, the transaction took place in about seven minutes. In comparison, an average inter-firm payment made using the traditional financial system takes about three to four hours to complete. This trial pointed out the potential for faster payment settlements within the firm’s treasury management using blockchain.
Hyundai Card conducted this pilot in collaboration with its partners: Tether, Ava Labs, and Axiym. All three firms played their own role in the payment process, allowing a real-world test using blockchain technology. This pilot was not aimed at consumer payments but rather focused on treasury management.
Hyundai has also made it clear that it will be scaling up this program to more nations and even their currencies. There will be another blockchain payments pilot run by Hyundai in Europe in collaboration with Circle and Visa next month.
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Hyundai Makes Blockchain Treasury History
This transaction is a first for Hyundai as this marks the first time that such a transaction has been completed through the use of blockchain by any major South Korean enterprise. Hyundai conducted the transfer of USDT from its subsidiary based in the USA to its subsidiary in Mexico.
Payment was made using the Avalanche platform. The payment was done in minutes, and it was recorded on the blockchain network. This is in contrast to the banking system, where payments usually take more time and use various intermediaries for processing.
In particular, Hyundai Card was the leader in the pilot project, whereas Tether provided the stablecoin USDT, and Avalanche was enabled by Ava Labs, and Axiom provided payment solutions. Collectively, they made an actual transaction for treasury management rather than a technical demonstration only.
Stablecoins Gain Ground in Corporate Treasury
In terms of making cross-border transactions easy and fast for businesses, stablecoins have become a crucial part of the solution. By employing stablecoins, businesses will be able to make transactions faster and at times that lie beyond the business hours of banks. This is evidenced by the most recent test done by Hyundai.
It is time for the corporation to evaluate the outcomes of the experiment before implementing the solution in other regions. Further deployment will depend on operational needs and compliance evaluation, among others.
As the second pilot program in Europe has been scheduled, Hyundai is constantly looking at ways to use blockchain and stablecoins for quicker and more effective payment operations within its global corporate network.
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