POSCO International, LG CNS Pilot Blockchain Tokenization of Receivables

POSCO International, South Korea's largest trading company, has embarked on a pilot project to tokenize its trade receivables on a blockchain, in collaboration with LG CNS, the technology arm of LG Group. This significant initiative aims to accelerate commercial payments between the company's global subsidiaries and broaden the adoption of blockchain technology in corporate finance.

POSCO International, which generated $22.2 billion in revenue last year from diverse businesses including steel, energy, and battery materials, is working with LG CNS to issue, transfer, and settle receivables on the Layer-1 blockchain Injective (INJ). The pilot is utilizing receivables generated from real trade between POSCO's overseas operations and their counterparties, rather than simulated transactions. Traditionally, these trade receivables—money owed to a company after goods have been shipped but before payment is received—are tracked separately by buyers, sellers, and banks, often leading to reconciliation processes that can take days.

The companies aim to create a single, transferable on-chain record for each receivable, embedded with its own compliance rules, by placing them on a shared blockchain ledger. A spokesperson for POSCO International emphasized the significance of this proof-of-concept (PoC) in validating the applicability of AI and blockchain technology based on real trade data and processes. The firm plans to expand the initiative into live production after completing the pilot later this year.

This development underscores the expansion of tokenization beyond funds and equities. While asset managers like BlackRock, Franklin Templeton, and Apollo have been moving funds onto blockchain infrastructure to streamline issuance, settlement, and collateral management, trade finance is emerging as another promising use case. Citi estimates that the market for tokenized assets could grow from its current size of $35 billion to $5.5 trillion by 2030. Receivables represent real commercial obligations between businesses, enabling companies to manage working capital more efficiently on blockchain rails.

South Korea has become one of the most active markets for corporate blockchain adoption. Earlier this month, carmaker Hyundai Motor began using stablecoins for internal treasury transfers between its U.S. and Mexico operations, while stablecoin issuer Circle partnered with Kakao Group and Toss Bank to explore stablecoin payment infrastructure. LG CNS itself has led key phases of the Bank of Korea's wholesale central bank digital currency (CBDC) trials and built tokenized deposit platforms involving seven major banks. The Injective network, designed specifically for financial applications as a Layer-1 blockchain, is also making significant strides in the AI agent economy and enterprise solutions space.

Analysts and market observers highlight the immense potential of this pilot project between POSCO International and LG CNS to enhance efficiency in global trade finance. By reducing multi-day reconciliation cycles to potentially just hours, companies could achieve substantial improvements in working capital management. The successful implementation of this initiative could encourage other large corporations to adopt similar blockchain-based solutions, playing a critical role in achieving the projected growth targets for the tokenized asset market.