POSCO International, South Korea’s largest trading company, has started tokenizing trade receivables on the 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 from businesses spanning steel, energy and battery materials, is working with LG CNS, the technology arm of LG Group, to issue, transfer and settle claims on the layer 1 blockchain. the companies told CoinDesk during a press briefing.
The pilot uses receivables generated by actual exchanges between POSCO’s foreign operations and their counterparties rather than simulated transactions.
Trade receivables represent money owed to a business after goods have been shipped but before payment is received. Today, these receivables are typically tracked separately by buyers, sellers and banks, with reconciliation often taking several 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 remaining compliant with the asset itself.
