South Korea’s largest trading company, POSCO International, has partnered with LG CNS and blockchain network Injective (INJ) to tokenize real trade receivables from international commerce, marking a notable step in enterprise blockchain adoption.

The proof of concept (PoC) is based on actual receivables generated by POSCO International’s overseas subsidiaries and their counterparties. Unlike earlier blockchain simulations, the PoC involves the digitalization of real invoices and payments, allowing businesses to tokenize, trade, manage, and settle commercial assets using blockchain technology.

Source: Injective’s X Post

POSCO Modernizes Trade Finance With Blockchain

Trade finance is a core part of global commerce, but it remains inefficient. Billions of dollars move through international trade every year, yet the process is still fragmented across banks, suppliers, buyers, insurance companies, and subsidiaries using separate systems.

Because these processes must often be checked manually, actions can be delayed and payments can be pushed past their due dates. That operational friction is one reason trade-finance digitization has remained a persistent focus across enterprise and banking systems.

By applying blockchain technology to receivables, POSCO International and LG CNS aim to create a shared ledger. That ledger would let authorized users track ownership, transaction history, and settlement progress. The approach is designed to improve transparency, lower operating costs, and help companies manage working capital more effectively.

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Injective Provides Institutional Blockchain Infrastructure

Injective was chosen as the underlying blockchain for the pilot because of its focus on financial use cases and real-world asset tokenization. The network provides features for permissions, compliance, and asset management that are intended for institutional users.

Whereas traditional distributed ledger technology typically only tokenizes assets, Injective allows companies to embed governance directly into the assets themselves, including ownership details, asset transfer rules, and approval requirements for transfers. This makes it possible to manage blockchain-based financial instruments within regulated systems.

AI and Blockchain Transform Trade Operations

The project combines blockchain and artificial intelligence to improve trade operations. POSCO International and LG CNS have started an experimental system that uses intelligent machines to review letters of credit and detect errors before payment. The goal is to reduce labor intensity, improve accuracy, and increase payment efficiency.

LG CNS, the IT arm of LG Group, will contribute its experience in enterprise blockchain development. The company has supported South Korea’s central bank digital currency project and has worked on other financial blockchain initiatives, underscoring a central principle: blockchain networks must connect with existing corporate systems to achieve broad adoption.

Future of Blockchain-Powered Trade Finance

The joint project by POSCO International and LG CNS represents a significant development as asset tokenization moves from theory to a real-world application involving actual assets. The use of real receivables also makes the pilot more relevant to how trade finance operates in practice, where documentation, approvals, and settlement timing all affect day-to-day operations.

Despite challenges such as regulatory approvals, international compliance, and institutional participation, the pilot marks an important step toward blockchain-based trade finance. If the project succeeds, it could provide a foundation for managing commercial receivables on a larger scale across global markets. The initiative is intended to show how blockchain is moving beyond theory and into core financial infrastructure.