Stablecoin Cross-Border Remittances
Hyundai Card Pioneers Stablecoin Cross-Border Remittances, Slashing Transfer Times to Minutes
Anonymous
Key Points
1
The second PoC in Europe will test remittances in local currencies beyond USD and assess potential cost savings from lower foreign-exchange expenses.
2
Hyundai Card is described as the first card company to complete a stablecoin remittance PoC between Hyundai Motor's overseas subsidiaries.
3
The PoC is framed as moving beyond laboratory testing to actual invoicing and remittance, with Hyundai Card and Hyundai Motor designing end-to-end process infrastructure and addressing regulatory and internal-control considerations.
4
Industry reporting notes that stablecoin remittances could reduce reliance on traditional correspondent banking networks and shorten settlement times from hours or days to minutes.
Hyundai Card has completed a stablecoin proof-of-concept that sent $20,000 from the United States to Mexico in roughly seven minutes, according to Korea Herald. The transfer, which would typically take hours or days through traditional banking channels, used USDT stablecoin on the Avalanche blockchain network.
The company is now running a second test aimed at Hyundai Motor's European subsidiaries, signaling plans to scale the approach across the entire group, Crypto Briefing reported.
$20,000 Transfer Completed in Under Seven Minutes
The pilot converted $20,000 into USDT — a stablecoin pegged to the US dollar — then sent it to Hyundai Motor Mexico, and converted it back to dollars, according to IT Brief. The entire process took about seven minutes. A traditional wire transfer through correspondent banks can take one to three business days and incur significant fees.
Partners in the project included stablecoin issuer Tether, the Avalanche blockchain, and payments infrastructure firm Axiym, Korea Herald reported. Hyundai Card is described as the first card company to complete a stablecoin remittance test between Hyundai Motor's overseas subsidiaries.
Beyond Lab Testing: Full Invoicing and Settlement Workflows
The PoC was designed to go further than a simple lab demonstration. Hyundai Card and Hyundai Motor built end-to-end process infrastructure that replicated real invoicing and remittance workflows, IT Brief reported. The companies also worked through regulatory, accounting, tax, and internal-control requirements for overseas entities.
That level of detail matters. Many blockchain pilots stop at the technical transfer. This one addressed the compliance and financial reporting questions that companies actually face before they can use a new payment rail at scale.
Europe Pilot Adds Local Currency and Cost-Saving Tests
The second PoC, now underway in Europe, will go a step further than the US-Mexico test. It will test transfers in local currencies beyond USD and measure potential savings from lower foreign-exchange costs, Crypto Briefing reported. Hyundai Card named Circle and Visa as new partners for the European phase, according to Value the Markets.
Cutting foreign-exchange fees is a major draw for large multinationals. Companies like Hyundai Motor move large sums between subsidiaries regularly. Even small reductions in FX costs can add up to millions of dollars per year across a global operation.
Stablecoins Challenging Traditional Correspondent Banking
The Hyundai test is part of a broader shift in how corporations think about cross-border payments. Traditional transfers rely on a chain of correspondent banks, each adding time and fees. Stablecoin rails can bypass that chain entirely, cutting settlement from days to minutes, Crypto Briefing noted.
Hyundai Card said the PoC shows real-world viability for intra-company settlements and could enable broader use in treasury management and fund transfers, Korea Herald reported. If the European pilot succeeds, the group could roll out stablecoin remittances across its global subsidiary network.
Sentiment
Mostly PositiveNEGATIVENEUTRALPOSITIVE
Publishers
23
Articles
14
Reach
37
A
AnonymousAuthor
