POSCO International tokenizes trade receivables on Injective in $35B market

POSCO International, South Korea's largest trading company, tokenized live trade receivables on the Injective blockchain in a proof of concept with LG CNS.

"This proof of concept is significant in that it validated the applicability of AI and blockchain technology based on real trade data and processes," a POSCO International spokesperson said.

The pilot used receivables generated from actual trade between POSCO's overseas subsidiaries and their counterparties, rather than simulated transactions. The company, which reported $22.2 billion in revenue last year from businesses spanning steel, energy and battery materials, plans to expand the initiative into live production after completing the pilot later this year.

The global market for tokenized real-world assets currently stands at about $35 billion, according to industry data. Citigroup has estimated the market could reach $5.5 trillion by 2030 as enterprises move commercial obligations onto blockchain rails to reduce settlement times and improve working capital management.

Tokenization in Practice

The initiative marks one of the first instances of a major trading company putting actual trade receivables — claims companies hold after goods are shipped and before payment is collected — onto a public blockchain. Under the existing system, buyers, sellers and banks track those claims separately, with reconciliation often taking days before cash can be released.

By placing receivables on a shared blockchain ledger, the companies created a single, transferable record that embeds compliance rules with the asset itself. The structure allows all parties to check the same transaction status in real time, reducing operational risk from data discrepancies.

LG CNS, the technology arm of LG Group, handled system architecture design and blockchain technology verification. The company previously participated in the Bank of Korea's central bank digital currency pilot and operates tokenization platforms for KOSCOM and Mirae Asset Securities.

The pilot builds on Injective's architecture, which allows compliance, privacy and regulatory controls to be embedded at the protocol layer. The companies verified permission-based asset management, know-your-customer and anti-money-laundering checks, investor eligibility screening and asset transfer restrictions.

South Korea's Blockchain Push

South Korea has emerged as one of the more active markets for corporate blockchain adoption. Hyundai Motor earlier this year began using stablecoins for internal treasury transfers between its US and Mexico operations, while Circle partnered with Kakao Group and Toss Bank to explore stablecoin payment infrastructure.

The POSCO-LG CNS pilot extends that push into global trade finance. If successful, it could pave the way for widespread adoption of tokenized trade receivables by global corporates, potentially reshaping the trillion-dollar trade finance industry.

This article is for informational purposes only and does not constitute investment advice.