Home S. Korean Trading Giant POSCO International Puts Receivables Onchain In Tokenization Test With LG CNS

S. Korean Trading Giant POSCO International Puts Receivables Onchain In Tokenization Test With LG CNS

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S. Korean Trading Giant POSCO International Puts Receivables Onchain In Tokenization Test With LG CNS
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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.

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

Trade receivables arise when goods are delivered but payment is yet to be received. At present, the claims on trade receivables are managed separately by buyers, sellers, and banks, requiring days for reconciling before cash is collected.

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.

Much of the industry’s recent attention has centered on tokenizing funds and equities. 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.

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.

With the test on Injective, POSCO and LG CNS are extending that push into global trade finance. LG CNS has previously worked on the Bank of Korea’s central bank digital currency pilot and operates tokenization platforms for KOSCOM and Mirae Asset Securities.

 

 

 

 

 

 

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Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

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