Hyundai’s Blockchain Arm to Set Up $10M Fund for Mainnet Launch: Report

Hdac Technology, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group, plans to set up a $10 million blockchain investment fund in 2019.

Hdac testnet to launch in November 2019

Hdac will spend the funds on launching its mainnet, developing decentralized applications, supporting new industry startups and creating an ecosystem with a “cryptocurrency compensation system,” Korean outlet The Financial News reported on Oct. 6.

Hdac, the issuer of the Hyundai token (HDAC), is planning to release its mainnet in the first quarter of 2020, the report notes. As previously announced, the testnet is scheduled to launch in November.

Cooperation with Kakao

Joo Yong-wan, the head of Hdac’s South Korean office, reportedly announced the news during Korea Blockchain Week, which was held between Sept. 29 and Oct. 4. The executive revealed Hdac’s plans to establish joint funds with financial companies “to discover and foster small but promising blockchain companies.”

Additionally, Joo Yong-wan noted that the firm is looking for cooperation with local blockchain businesses such as Ground X, the blockchain arm of South Korean tech giant Kakao that launched the mainnet of its Klaytn platform in June 2019.

Hyundai has been actively embracing blockchain technology. In April, the company announced a blockchain application for pairing electric vehicles with smartphones. Earlier this year, Hyundai’s financial services subsidiary Hyundai Commercial has partnered with global tech giant IBM to transform its business model using blockchain.