Hyundai Card seems to be entering a more ambitious phase of its blockchain strategy following successful tests of stablecoin-based corporate payments on Avalanche.
Heejung Nam, head of Payments and business development at Hyundai Card, emphasized the importance of scaling up the system beyond a small proof of concept.
“We need to demonstrate that the entire operational model is effective at a larger scale,” Nam stated, as reported by Avalanche. “What happens when we can expand? Then the economic model proves successful.”
Hyundai’s current focus is on testing whether the infrastructure can handle the increased transaction volumes and operational complexity required by Hyundai Motor Group.
Hyundai’s Successful Seven-Minute Avalanche Transfer
In July, Hyundai Card announced the successful completion of a proof of concept involving a real cross-border payment between Hyundai Motor America and Hyundai Motor Mexico.
While the transaction was relatively small (around $20,000), it was significant as it involved the transfer of actual corporate funds.
Hyundai Motor America initially converted $20,000 into Tether’s dollar-pegged stablecoin, $USDT. The $USDT was then sent to Hyundai Motor’s Mexican operation via Avalanche and subsequently converted back into U.S. dollars.
The entire process, as per Hyundai Card, took an average of approximately seven minutes. This stands in stark contrast to the traditional banking infrastructure, which would typically require three to four hours for a similar transaction.
The project was a collaboration between Hyundai Card, Hyundai Motor, Tether, Avalanche, and blockchain payments infrastructure firm Axiom.
An Avalanche executive confirmed that the experiment involved real intercompany settlement rather than a simulated blockchain transaction.
While many large corporations have conducted blockchain proofs of concept in the past, most have not progressed beyond simple demonstrations. The Avalanche pilot has the potential to evolve from a standalone blockchain experiment to a regularly used infrastructure for corporate treasury activities.
At present, Hyundai has not disclosed plans for a group-wide deployment or provided a timeline for full commercialization.