Hyundai Card is making strides towards 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 need to demonstrate the scalability of the system beyond a small proof of concept.
“We must show that the entire operational model can function at a larger scale,” Nam stated, as reported by Avalanche. “What happens when we scale up? That’s when the economic model proves itself.”
Hyundai is now evaluating whether the infrastructure can handle the increased transaction volumes and operational complexity required by Hyundai Motor Group.
Hyundai’s 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.
The transaction, although relatively small (around $20,000), was significant as it involved actual corporate funds being transferred.
Hyundai Motor America initially converted $20,000 into Tether’s dollar-pegged $USDT stablecoin. The $USDT was then sent to Hyundai Motor’s Mexican division via Avalanche, where the stablecoin tokens were converted back to U.S. dollars.
According to Hyundai Card, the entire process took an average of approximately seven minutes, a significant improvement compared to the traditional banking infrastructure which would take three to four hours for a similar transaction.
The project involved collaboration between Hyundai Card, Hyundai Motor, Tether, Avalanche, and blockchain payments infrastructure company Axiom.
An Avalanche executive mentioned that the experiment entailed genuine intercompany settlement rather than a simulated blockchain transaction.
While many large corporations have explored blockchain proofs of concept in the past, most have not progressed beyond simple demonstrations. The Avalanche pilot has the potential to transition from a standalone blockchain experiment to a widely used infrastructure for corporate treasury activities.
As of now, Hyundai has not disclosed plans for a group-wide implementation or provided a timeline for full commercialization.