Hyundai Card has successfully completed a stablecoin-based institutional payment test on the Avalanche network and is now gearing up for a more comprehensive phase of its blockchain strategy. Shifting focus from a limited-scale trial, the company aims to assess the scalability of its system to handle larger volumes, marking a significant stride in its technological advancement.
From Trial to Scalable Operations
Addressing the current phase, Heejung Nam, Head of Payments and Business Development at Hyundai Card, emphasized the goal of proving the operational model’s large-scale functionality. Achieving higher transaction volumes is essential for the economic model to be meaningful. This endeavor will help transition from mere trials to robust, everyday corporate usage.
Heejung Nam highlights that the operational model must perform seamlessly at a large scale for the economic structure to become viable.
The company is keen to determine whether the existing infrastructure can support the operational complexities required by larger transaction volumes, especially needed at the Hyundai Motor Group level. This strategic approach is crucial for moving from experimental phases to real-world corporate application scenarios.
Cross-Border Payment Trial
In July, Hyundai Card proudly announced the successful execution of a cross-border payment proof of concept involving Hyundai Motor America and Hyundai Motor Mexico. Although the transaction was modest at around $20,000, it interestingly involved real funds between the businesses, attracting attention.
The process saw Hyundai Motor America convert $20,000 into Tether‘s dollar-pegged stablecoin, USDT. The assets were then transferred over the Avalanche network to Hyundai Motor’s Mexican division and reconverted into USD upon arrival.
Avalanche remarked that the trial wasn’t just a simulation but involved an actual reconciliation between companies.
Hyundai Card’s data reveals that the entire transaction took an average of approximately seven minutes. In contrast, traditional banking systems would have required at least three to four hours for the same process. This time efficiency highlights why blockchain-based systems are closely monitored, especially for time-sensitive inter-company payments.
- The successful completion of a cross-border payment trial demonstrates the practical application of blockchain technology.
- Speed and cost advantages over traditional banking methods were significantly noted.
- Collaborations included major entities like Hyundai Motor, Tether, and Axiom, showcasing a real-world payment flow test.
Despite the promising results, Hyundai has yet to decide on a group-wide rollout or share a timeline for full commercial integration. The next step for the company is to ensure performance and operational alignment at higher transaction volumes, potentially positioning it as an integral part of habitual corporate treasury operations.
