Hyundai Card tests stablecoin remittance between US and Mexico units

Hyundai Card said it has completed a stablecoin proof of concept for a $20,000 cross-border transfer between Hyundai Motor America and Hyundai Motor Mexico, with the full transfer and verification process taking an average of seven minutes. The company said the test was designed for intercompany settlement between overseas corporate entities, a use case that could affect how multinationals handle routine cross-border payments.

The card issuer announced on July 9 that it carried out the first trial with Hyundai Motor Company and will proceed to a second proof of concept involving Hyundai Motor’s European entities later this month. Hyundai Card said the work has moved beyond a narrow technical test and included preparation for possible operational deployment between overseas affiliates.

In the first exercise, Hyundai Motor America converted $20,000 into USDT, the US dollar-backed stablecoin issued by Tether, transferred the token to Hyundai Motor Mexico and converted the funds back into US dollars. Hyundai Card said the process compared with traditional interbank transfers, which it said typically require more than three to four hours.

Stablecoins are digital tokens designed to track the value of a reference asset, often a fiat currency. In this structure, the sender first exchanges fiat money for the token, transfers the token over a blockchain network, and the recipient then converts it back into fiat currency. The payment message and value movement are handled through blockchain infrastructure rather than relying solely on correspondent banking rails.

Hyundai Card said the first proof of concept involved Tether, blockchain technology company Avalanche and blockchain-based payment infrastructure company Axiym, alongside Hyundai Card, Hyundai Motor America and Hyundai Motor Mexico.

Compliance and operating controls reviewed

Hyundai Card said it worked with Hyundai Motor to review accounting, tax, legal, internal control and regulatory requirements linked to stablecoin transfers between overseas entities. The company said it also designed the remittance structure, the process flow, the allocation of roles and the broader operating framework for the test.

The company characterised the trial as an actual remittance for settlement processes that occur frequently in international business, rather than a laboratory exercise. It said the project also considered possible issues across the transfer process and the infrastructure needed to address them.

The second proof of concept will be conducted between Hyundai Motor’s entities in Europe, according to Hyundai Card. The company said that trial will include real remittances using local currencies other than the US dollar and will assess potential economic effects of blockchain-based stablecoin transfers, including foreign-exchange cost efficiency.

Circle and Visa will participate in the second proof of concept, Hyundai Card said. Circle issues USDC, another dollar-linked stablecoin, while Visa has been involved in digital asset settlement initiatives, although Hyundai Card did not provide further detail on their respective roles in the European test.

Hyundai Card said it plans to continue working with Hyundai Motor to assess whether stablecoins can be used more broadly for settlements and fund transfers among Hyundai Motor Group’s overseas entities. A Hyundai Card official said the proof of concept showed preparation for real-world deployment and that the company would keep exploring stablecoin-based remittance and payment infrastructure opportunities.

This story draws on original reporting from Finextra Research.