"This PoC is significant in that it validated the applicability of AI and blockchain technology based on real trade data and processes," a spokesperson for POSCO International stated. The South Korean trading giant has embarked on a pilot project to tokenize real trade receivables on the Injective blockchain, aiming to accelerate payment settlements among its global subsidiaries. This marks a notable step as the company moves beyond simulations, using actual invoices generated from trade between POSCO's overseas branches and their partners.
Trade receivables represent the money owed after goods have been shipped but before payment is received, and traditionally these are tracked separately by buyers, sellers, and banks a process that causes delays in reconciliation and cash transfers. By recording these receivables on a shared blockchain ledger, POSCO and LG CNS, the technology division of LG Group, aim to create a single, transferable record that carries embedded compliance rules. This could significantly reduce the time it takes to reconcile accounts and release funds.
The pilot project involves issuing, transferring, and settling commercial invoices on Injective, a layer-1 blockchain platform. POSCO International, which reported $22.2 billion in revenue last year from sectors like steel, energy, and battery materials, intends to move this pilot into full production later this year. The initiative reflects a broader trend in South Korea where corporate blockchain adoption is expanding into trade finance, treasury operations using stablecoins, and asset tokenization.
While asset managers worldwide have focused on tokenizing funds and equities, with firms like BlackRock and Fidelity leading the charge, POSCO’s experiment with live trade receivables shows the potential for blockchain to revolutionize everyday corporate finance processes. This development highlights a tangible use case of blockchain technology that could improve liquidity and efficiency in global trade payments.
