Two major South Korean companies are turning to blockchain to modernize trade finance. POSCO International and LG CNS have selected the Injective (INJ) blockchain for a proof of concept that will tokenize trade receivables.
The PoC is a concrete step toward digitizing a traditionally paper-heavy, slow-moving industry. Trade finance — the letters of credit, invoices, and receivables that underpin global commerce — has long been a target for blockchain optimists. But real-world deployments remain rare. This initiative puts Injective in the middle of one of the more serious attempts.
What the PoC involves
POSCO International, the trading and energy arm of the steel giant POSCO, and LG CNS, the IT services subsidiary of LG, will use Injective's blockchain to tokenize trade receivables. Tokenization means converting those receivables into digital assets that can be traded or used as collateral more efficiently than the current paper-based system.
The companies haven't disclosed a timeline or whether the PoC will lead to a full rollout. But the choice of Injective — a layer-1 blockchain built specifically for finance — suggests they're looking for speed and interoperability rather than just a generic smart contract platform.
Why trade finance needs this
Trade finance is still heavily reliant on physical documents, manual verification, and multiple intermediaries. That makes it slow, expensive, and prone to fraud. Tokenizing receivables on a blockchain can automate parts of the process, reduce settlement times, and give all parties a shared view of the data.
Injective's blockchain is designed for cross-chain transactions and has a built-in order book, which could help with the trading of these tokenized assets. The PoC will test whether the technology holds up under real business conditions.
The PoC is in its early stages. POSCO International and LG CNS will run the test and evaluate results. If successful, it could open the door to broader adoption of blockchain in trade finance — not just in South Korea but globally. For now, Injective gets a high-profile use case that goes beyond the usual DeFi and NFT applications.
