Key facts
- POSCO International is piloting a blockchain solution with LG CNS to tokenize trade receivables.
- The initiative aims to speed up commercial payments between POSCO's global subsidiaries.
- Receivables are being tokenized on the Injective blockchain.
- The pilot utilizes real trade data, not simulated transactions.
- POSCO plans to move the initiative into live production after the pilot concludes.
South Korea's POSCO International, the nation's largest trading company, is conducting a pilot program with LG CNS to tokenize trade receivables on the Injective blockchain. This initiative aims to accelerate payment processes and reduce reconciliation times for its global subsidiaries by creating a single, transferable record of financial obligations.
The pilot utilizes actual trade data, rather than simulated transactions, to test the issuance, transfer, and settlement of receivables. Trade receivables represent money owed to a company for goods already shipped but not yet paid for, a process that typically involves lengthy reconciliation between buyers, sellers, and banks.
POSCO International, which reported $22.2 billion in revenue last year, plans to transition the tokenized receivables system into live production following the successful completion of the pilot. This move aligns with South Korea's increasing corporate adoption of blockchain technology, extending beyond funds and equities to practical applications in trade finance.
The broader market for tokenized assets is rapidly expanding, with current estimates placing its value at $35 billion and projecting growth to $5.5 trillion by 2030. Trade finance is identified as a key area for blockchain innovation, enabling more efficient working capital management and providing financial partners with a clearer view of assets.
South Korea has been a hub for corporate blockchain initiatives, including Hyundai's use of stablecoins for internal treasury transfers and Circle's partnerships to explore stablecoin payment infrastructure. This POSCO and LG CNS test further pushes the boundaries of blockchain in global trade finance.