South Korean companies are expanding their use of blockchain in corporate financial processes. POSCO is collaborating with LG CNS, a technology subsidiary of the LG Group, to test the tokenization of real-world trade receivables on the Injective blockchain to improve payment and settlement efficiency among its global subsidiaries.
Pilot program using real trade data
This test was not a simulated transaction. The assets involved in the pilot program were actual trade receivables that had already occurred between POSCO International's overseas operations and its counterparties.
Accounts receivable typically refer to a company's right to receive payment from a buyer after goods have been shipped but before payment is received. In traditional processes, the buyer, seller, and bank often record relevant information separately, and verification and disbursement can take several days. Putting these assets on the blockchain aims to expedite the issuance, transfer, and settlement processes.
POSCO and LG CNS told CoinDesk that they are processing the issuance, transfer, and settlement of accounts receivable on the Injective Layer 1 network. POSCO stated that it plans to move the project to a production environment later this year after completing the pilot phase.
South Korean companies are accelerating their exploration of on-chain settlement.
This pilot program also reflects the increasing investment of South Korean companies in blockchain applications, with the focus no longer limited to crypto asset trading, but extending to scenarios more closely related to business operations, such as trade finance, stablecoin fund transfers, and asset tokenization.
Earlier this month, Hyundai Motor Company began using stablecoins for internal fund transfers between its US and Mexican operations. Circle has also recently partnered with Kakao Group and Toss Bank to explore stablecoin payment infrastructure.
Against this backdrop, the pilot program between POSCO and LG CNS further advances on-chain applications into global trade finance. LG CNS previously participated in the Bank of Korea's digital currency pilot program and operates tokenization platforms for KOSCOM and Mirae Asset Securities.
Tokenization expands from funds to trade finance
In the past two years, market attention to tokenization has been focused on financial assets such as funds and stocks. Institutions such as BlackRock, Franklin Templeton, Apollo, Fidelity, Janus Henderson, and Mubadala Capital have all promoted the on-chaining of some products, hoping to optimize the issuance, settlement, and collateral management processes.
CoinDesk, citing industry data, estimates the current market size of tokenized assets at approximately $35 billion. Citigroup, however, predicts that this market could grow to $5.5 trillion by 2030.
Compared to funds and securities, trade receivables correspond to real commercial debts already formed between companies. If these records can be shared on the blockchain, companies can mobilize working capital more quickly, and banks and financing partners can more easily view asset status simultaneously. This is one of the reasons why trade finance is seen as the next step in the implementation of tokenization.
POSCO International is South Korea's largest trading company, with revenues of approximately $22.2 billion last year, covering sectors such as steel, energy, and battery materials. If the pilot program successfully transitions to full operation, such enterprise-level blockchain cases could further encourage large South Korean companies to adopt blockchain infrastructure in their financial and settlement processes.
