POSCO International, South Korea’s largest trading company, has begun tokenizing trade receivables on blockchain in a test that could speed up trade payments between its global subsidiaries.
The company, which generated $22.2 billion in revenue last year in businesses spanning steel, energy and battery materials, is working with LG CNS, the technology arm of the LG Group, to issue, transfer and settle receivables on the Injective layer 1 blockchain. the companies told CoinDesk in a press conference.
The pilot uses accounts receivable generated by actual trade between POSCO’s overseas operations and its counterparties rather than simulated transactions.
Trade accounts receivable represent money owed to a business after goods have been shipped but before payment is received. Today, buyers, sellers and banks typically track those claims separately, and reconciliation often takes days before cash can be released.
The companies said that putting accounts receivable on a shared blockchain ledger creates a single record that can be transferred and settled while meeting compliance rules with the asset itself.
