Hyundai Card, together with Hyundai Motor, has completed an experiment in cross-border remittance between overseas units using a dollar-pegged stablecoin. It was not merely a technical verification but an actual transfer of money using Tether (USDT), with verification also completed. As the introduction of a won-based stablecoin fails to gain momentum, companies are seen as moving a step ahead in the global payment and remittance space.
Hyundai Card announced on the 9th that it had completed an international transfer using Tether between Hyundai Motor's U.S. unit (HMA) and Mexico unit (HMM).
The experiment carries significant meaning in that it used a dollar stablecoin for actual settlement between overseas units. Specifically, Hyundai Motor's U.S. unit converted $20,000 into USDT, then sent it to the Mexico unit, which then exchanged it back into dollars. The entire process, including the transfer and verification, took about 7 minutes. Using bank-to-bank international transfers typically takes at least 3 to 4 hours even at the fastest, so processing time was greatly reduced.
In this process, Hyundai Card, together with Hyundai Motor, comprehensively reviewed the regulations and rules of the relevant regions, including accounting, taxation, legal affairs, and internal controls, for stablecoin transfers between overseas units. In particular, it designed the entire process, including the transfer structure, method, and roles. Participating in this transfer between the U.S. and Mexico units were Tether, the blockchain platform Avalanche, and Axim, a blockchain payment infrastructure company.
Hyundai Card will also launch a second trial targeting Hyundai Motor's overseas units in Europe from late this month. It plans to conduct actual transfers based on local currencies rather than dollars, verifying economic feasibility such as reduced foreign-exchange costs. Global companies including Circle and Visa will take part in the second trial.
Going forward, Hyundai Card and Hyundai Motor plan to review ways to use stablecoins for settlement and fund transfers between overseas units operating in countries around the world. "The significance lies in the fact that we have completed preparations at a level ready for actual adoption, going beyond simple technical verification," a Hyundai Card official said. "We will continue to expand the scope of stablecoin use, centered on international remittance and payment infrastructure."
Hyundai Motor's use of stablecoins is expected to have a major impact on domestic companies as well. This is because making payments and transfers with stablecoins using blockchain can greatly reduce time. Stablecoin transfers also have almost no fees, allowing such costs to be reduced as well. "We have implemented, for the first time in the world, a stablecoin transfer model that meets regulations such as anti-money laundering (AML)," said Kim Yong-il, Asia head of Ava Labs. "The shift of multinational companies to stablecoin-based fund management systems will accelerate."
There are also claims that corporate fund management could become much more efficient. "The foreign-exchange cost from remittance is important, but the problem of money being tied up during the period when funds are moving is significant," said Seo Byung-yoon, CEO of DSRV. "This is an issue that could raise the efficiency of global companies' fund management to another level."
Within the industry, there are voices saying that Korea, too, must accelerate the introduction of a won-based coin. This is because if major companies rapidly expand their use of dollar stablecoins, the won-based coin could lose its place. There is also an aspect in which the introduction of a won-based stablecoin could make domestic and overseas remittance and payment more convenient.
"The Financial Services Commission said it would again pick up the pace on introducing the Digital Asset Basic Act, which is built around the introduction of a won-based coin, but it is hard to know whether it can be processed within the year," an official in the cryptocurrency industry said. "Since actual remittances and payments are taking place at the global level, we must hurry to introduce the legislation as much as possible so that only Korea does not fall behind."
