South Korea trading giant puts receivables onchain in tokenization test with LG CNS

POSCO International, South Korea’s largest trading company, has begun tokenizing trade receivables on blockchain in a test that could speed up commercial payments between its global subsidiaries.

The company, which generated $22.2 billion in revenue last year from businesses spanning steel, energy and battery materials, is working with LG CNS, the technology arm of LG Group, to issue, transfer and settle receivables on layer-1 blockchain Injective INJ$4.9980, the firms told CoinDesk in a press briefing.

The pilot is using receivables generated by real trade between POSCO’s overseas operations and their counterparties rather than simulated transactions.

Trade receivables represent money owed to a company after goods have been shipped but before payment is received. Today, those claims are typically tracked separately by buyers, sellers and banks, with reconciliation often taking days before cash can be released.

The companies said putting receivables on a shared blockchain ledger creates a single record that can be transferred and settled while carrying compliance rules with the asset itself.

“This PoC is significant in that it validated the applicability of AI and blockchain technology based on real trade data and processes,” a POSCO International spokesperson said. The firm said it plans to expand the initiative into live production after completing the pilot later this year.

Tokenization expands beyond funds and stocks

Much of the industry’s recent attention has centered on tokenizing funds and equities. Asset managers including BlackRock, Franklin Templeton, Apollo, Fidelity, Janus Henderson and Mubadala Capital have all brought funds onchain, betting blockchain infrastructure can streamline issuance, settlement and collateral management. The market for tokenized assets has grown rapidly in the past years to the current size of $35 billion, while Citi estimates the market could reach $5.5 trillion by 2030.

Trade finance is as another promising use case. Receivables represent real commercial obligations between businesses, allowing companies to move working capital more efficiently on blockchain rails while giving banks and financing partners a shared view of the asset.

South Korea has become one of the more active markets for corporate blockchain adoption. Earlier this month, carmaker Hyundai has begun using stablecoins for internal treasury transfers between its U.S. and Mexico operations, while stablecoin issuer Circle recently partnered with Kakao Group and Toss Bank to explore stablecoin payment infrastructure.