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 last year generated $22.2 billion in revenue from businesses spanning steel, energy and battery materials, is working with LG CNS, LG Group’s technology arm, to issue, transfer and settle receivables on the layer-1 blockchain Injective the companies told CoinDesk in a press briefing.
The pilot uses receivables generated from real trade between POSCO’s overseas operations and their counterparties instead of simulated transactions.
Accounts receivable represent money owed by a business after goods have been shipped but before payment has been received. Today, these claims are typically tracked separately by buyers, sellers and banks, with reconciliation often taking days before cash can be released.
The companies said placing receivables on a shared blockchain ledger creates a single record that can be transferred and settled while carrying compliance rules with the asset itself.
