Hyundai Card Completes First Stablecoin PoC Based on Avalanche and Tether... Announces Second Proof of Concept with Visa and Circle

Hyundai Card has established a major milestone toward the integration of traditional finance and digital assets. On July 9, 2026, Hyundai Card announced the successful completion of its first transaction-based stablecoin Proof of Concept (PoC) utilizing the Avalanche blockchain and Tether (USDT).

This PoC marks the first instance of a domestic card company applying stablecoins to payment and settlement processes on a public blockchain. Through this, Hyundai Card demonstrated its strategic commitment to overcoming the limitations of existing financial infrastructure and building an efficient digital asset payment ecosystem.

The success of this first PoC, announced on July 9, 2026, holds significant implications for the Korean fintech industry. By combining the high processing speed of the Avalanche network with the high liquidity of Tether, Hyundai Card verified stability in a real-world payment environment. This is evaluated as having explored the potential for actual commercialization beyond a simple technical test.

The completion of this PoC proves that Hyundai Card is leading payment innovation based on digital assets and will serve as a foundation for expanding global partnerships in the future.

From a technical perspective, the combination of Avalanche and Tether is analyzed as an optimal choice. Avalanche provides low fees and near-instant transaction finality, while Tether (USDT), as the world's most widely used stablecoin, ensures payment reliability. The technical collaboration between the two companies served as a key driver for establishing the real-time settlement system that Hyundai Card aims for.

Comparison of Stablecoin Demonstration Phases and Regulatory Environment

However, these innovative attempts are taking place within South Korea's complex regulatory landscape. Currently, legislation related to stablecoins in Korea has been delayed until 2026 due to disagreements between regulatory authorities. The Financial Services Commission (FSC) applies strict standards, classifying stablecoin issuance and fiat currency exchange services as targets for Virtual Asset Service Provider (VASP) registration.

• Submission of the Basic Act on Digital Assets has been postponed to 2026 due to conflicts between authorities.
• In principle, the issuance and distribution of stablecoins by unregistered institutions are prohibited.
• High technical and financial requirements for VASP registration act as a barrier to entry for companies.

Based on the results of the first demonstration, Hyundai Card plans to launch the second PoC starting in late July 2026. In the second phase, global payment giant Visa and stablecoin issuer Circle will join to conduct tests using USDC. This demonstrates Hyundai Card's roadmap to build a multifaceted global ecosystem beyond a single partnership.

This move is in line with Hyundai Card's recent financial strategy. On June 18, 2026, Hyundai Card became the first Korean financial institution to issue dual-currency Kimchi bonds in US dollars and Chinese yuan, diversifying its funding portfolio. The introduction of stablecoins is an extension of this strategy to strengthen global financial competitiveness.

While the market is paying attention to Hyundai Card's moves, the price of Avalanche (AVAX) is showing a cautious reaction, trading sideways between $6 and $10 as of July 2026. Experts predict that the point when regulatory uncertainty is resolved will be a watershed moment for the popularization of stablecoin payments.

Hyundai Card's continuous demonstration work will serve as a catalyst to accelerate the convergence of institutional finance and virtual assets in the future. Depending on the success of the next phase involving Visa and Circle, the landscape of the domestic and international payment markets is expected to change significantly.