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 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.