Crypto test drive: How automakers are exploring digital assets

Seven minutes instead of four hours

Hyundai recently completed its first cross-border stablecoin settlement between its U.S. and Mexican divisions. Hyundai Motor America converted $20,000 into USDT, transferred the tokens to its Mexican unit over the Avalanche network, and the funds were then converted back into U.S. dollars.

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The entire transaction took around seven minutes. By comparison, a conventional interbank transfer between company divisions takes three to four hours.

This was not a test transaction but an actual intercompany settlement. Hyundai Card designed the transfer structure, conducted legal and tax assessments, and reviewed internal control and regulatory requirements. Blockchain payments company Axiym also participated in the project.

Hyundai plans to conduct the next stage in Europe. Visa and USDC issuer Circle will take part. The companies will test stablecoin transfers involving several European currencies and compare their cost with traditional international settlements.

Crypto at the checkout

While Hyundai used a stablecoin for an internal settlement, other automakers and dealers are using digital assets directly in their dealings with customers.

Ferrari, for example, began accepting cryptocurrency in the U.S. in 2023 and expanded the option to European customers in the summer of 2024. The company said the decision reflected demand from wealthy buyers who wanted to pay for vehicles with digital assets, according to Reuters.

Ferrari uses BitPay to process the payments. The service supports Bitcoin, Ethereum and the USDC stablecoin. After a payment is made, BitPay immediately converts the cryptocurrency into fiat currency and transfers the funds to the dealer. This means the dealership is not exposed to price volatility and does not hold digital assets on its balance sheet.

Porsche and Lamborghini dealers in France use a similar model. Porsche Centre Montpellier and Lamborghini Bordeaux integrated the Lyzi payment service, which allows customers to pay for vehicles with more than 80 cryptocurrencies, including Bitcoin, Tezos, USDC and EURC. The funds are also immediately converted into euros.

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In Georgia, Toyota Center Tbilisi accepts Bitcoin and USDT through CityPay.io. According to the company, the CityPay.io payment network operates at more than 600 locations across the country. However, this is an initiative by a specific dealer rather than a global payment policy introduced by Toyota.

The best-known experiment, however, was conducted by Tesla. In March 2021, the company allowed customers in the U.S. to pay for electric vehicles with Bitcoin, but suspended the option in May. Elon Musk attributed the decision to concerns about the use of fossil fuels in Bitcoin mining. Tesla has not resumed accepting Bitcoin for vehicle purchases, although selected products in its online store can still be purchased with Dogecoin.

Payments through an intermediary

But not every crypto payment involving an automaker’s brand means the service was launched by the manufacturer itself. In some cases, a third-party platform accepts digital assets and allows customers to pay a dealer invoice, lease or rental fee.

This happened with Honda in 2023. FCF Pay said its platform could be used to pay for Honda vehicles, motorcycles, leasing and rentals. The service supported around 100 digital assets, including Bitcoin, Ethereum, XRP, Dogecoin, Shiba Inu and PEPE. The fee was 2% plus a minimum charge.

Honda did not launch its own cryptocurrency infrastructure. The payment was processed through FCF Pay, which acted as an intermediary between the customer and the recipient. The service was initially available only in the U.S.

Such cases should be distinguished from decisions made directly by automakers. Ferrari announced an official program, while the Honda case involved the ability to pay for brand-related products and services through an external platform.

Stablecoins move ahead

Customer payments remain the most visible use of cryptocurrency in the auto industry, but Hyundai’s pilot points to another direction. Stablecoins can be used not only to buy vehicles but also to settle payments between divisions, suppliers and partners in different countries.

For an international automaker, stablecoins could simplify settlements between factories, sales divisions, suppliers and logistics partners. Funds can be transferred directly over a blockchain without opening separate settlement accounts or pre-funding capital in every country.

Stablecoins also appear more practical for businesses than Bitcoin and other volatile assets. Their value is tied to a fiat currency, allowing companies to use blockchain for transfers without taking on significant price risk.

Mass adoption is still a long way off. Each arrangement requires reviews of tax rules, foreign exchange regulations, internal controls and anti-money laundering requirements. But if Hyundai’s European pilot confirms lower costs, stablecoins could become part of routine international settlements in the auto industry, rather than merely a way to accept payments from cryptocurrency holders.

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