Hyundai, the world’s third-largest carmaker by vehicle sales, moved a stablecoin-based, cross-border, internal remittance system into production readiness on the Avalanche blockchain, becoming the first major South Korean company to do so.
"Hyundai is the first major enterprise to publicly announce this type of implementation on Avalanche, but the initiative represents more than a technical experiment," said Justin Kim, head of APAC at Ava Labs, which develops and supports the blockchain platform. "This is already a real treasury management use case, not a sandbox — the pilot moved live USD and $USDT between Hyundai Motor's U.S. and Mexico entities,”
The international transfer comes as stablecoins gain traction beyond crypto trading. Large companies are increasingly testing the technology to move money between subsidiaries, settle cross-border payments and reduce the cost and time associated with traditional banking rails, Lindsey Einhaus, who leads strategy and operations at stablecoin infrastructure firm Bridge, said at Consensus Miami in May.
For the maker of the Kia compact and Ioniq electric cars the first phase involved transferring $20,000 from Hyundai Motor America to Hyundai Motor Mexico by converting dollars into Tether's $USDT stablecoin before converting the funds back into dollars.
The companies plan to expand the project to additional cross-border payment corridors and currencies, the blockchain company told CoinDesk in an email interview.
“The next phase will explore additional cross-border corridors and local currencies, which will help evaluate how these systems can scale across more enterprise use cases," it said.
Project leader Hyundai Card, the manufacturer's credit card unit, said the process took an average of seven minutes, compared with the three to four hours typically required through traditional banking networks.
A second pilot involving Hyundai's European subsidiaries is scheduled to begin later this month. It will test local currency transfers and evaluate the cost of foreign exchange conversions in partnership with Circle Internet (CRCL), the issuer of the USDC stablecoin, and Visa.