Hyundai Becomes First Major South Korean Firm to Use Stablecoins for Internal Transfers

Hyundai, the world’s third largest automaker by vehicle sales, has moved its stablecoin based cross border payment system into full production on the Avalanche blockchain, making it the first major South Korean company to implement this kind of internal treasury solution. According to Ava Labs’ head of APAC, Justin Kim, the initiative goes beyond a technical trial, representing a genuine treasury management use case already handling live transfers between Hyundai’s U.S. and Mexico operations.

Stablecoins Gaining Ground Beyond Crypto Trading

The move reflects a broader trend of large corporations exploring stablecoins to streamline how money moves between subsidiaries and across borders. Industry experts have noted that companies are increasingly turning to this technology to cut costs and reduce delays associated with traditional banking systems.

How the First Transfer Worked

In its initial phase, Hyundai transferred $20,000 from its US operations to its Mexico division by converting dollars into Tether’s USDT stablecoin before converting the funds back into dollars on the receiving end. According to Hyundai Card, the automaker’s credit card unit and lead on the project, the entire process took an average of just seven minutes, compared to the three to four hours typically required through conventional banking channels.

Expansion Plans Underway

Hyundai and its blockchain partners plan to expand the system to additional currencies and cross border payment routes as they evaluate how well it scales across more corporate use cases. A second pilot involving Hyundai’s European subsidiaries is set to begin later this month, testing local currency transfers in partnership with Circle Internet, the issuer of the USDC stablecoin, along with Visa.