POSCO International, South Korea’s top trading firm, teamed up with LG CNS and the blockchain platform Injective (INJ) to bring real trade receivables onto the blockchain. This initiative goes beyond typical simulations by digitizing actual invoices and payments from POSCO’s foreign subsidiaries and their partners.
The project’s proof of concept focuses on converting genuine commercial invoices into blockchain tokens, allowing businesses to trade, manage, and settle these assets transparently and efficiently. Traditionally, international trade finance involves multiple players such as banks, suppliers, buyers, insurance firms, and subsidiaries, all working with separate, disconnected systems that require manual verification. This leads to delays and inefficiencies in payment processing.
By establishing a shared ledger through blockchain, POSCO International and LG CNS aim to enable authorized participants to track asset ownership, transaction histories, and settlement progress in real time. This approach promises reduced operational costs and better management of working capital for companies engaged in global trade.
Injective was chosen as the underlying blockchain for this pilot due to its specialized features for financial applications and asset tokenization. Unlike standard distributed ledgers that simply tokenize assets, Injective embeds governance rules directly into tokens. These include ownership details, transfer permissions, and approval workflows, making it possible to handle blockchain-based financial instruments within regulated environments.
The partnership also integrates AI technology to enhance trade operations. LG CNS and POSCO International are experimenting with AI-driven reviews of letters of credit to detect errors before payments are made. This reduces manual labor, improves accuracy, and speeds up the payment cycle.
LG CNS, a division of LG Group with a strong background in enterprise blockchain solutions, supports South Korea’s CBDC initiatives and other financial blockchain projects. The company stresses that connecting blockchain systems with existing corporate infrastructure is key to achieving widespread adoption.
Market reaction to Injective (INJ) following this announcement has been muted, with slight fluctuations but no major price movements as traders assess the impact.
