POSCO International, South Korea’s largest trading company, is expanding its presence in tokenized trade finance by successfully completing a transaction that converted real-world receivables into digital assets on an Avalanche-based blockchain network ($AVAX), just one month after a similar pilot on Injective.
The company’s U.S. division collaborated with trade finance platform Olea and asset-backed finance technology firm Intain on this groundbreaking transaction. Intain leveraged artificial intelligence to reconcile invoices, purchase orders, credit notes, and shipping documents before authenticating and recording the receivables on its Layer-1 network built on Avalanche ($AVAX).
Trade receivables represent the money owed to a company post the delivery of goods but before the customer settles the payment. Traditionally, companies could borrow against these invoices; however, the process often involved aligning records maintained separately by buyers, sellers, and banks.
By registering the receivable on a shared blockchain ledger, a unified record of ownership and the asset’s status is established, potentially streamlining paperwork and facilitating expedited access to financing for companies.
This initiative follows POSCO International’s recent collaboration with LG CNS to issue, transfer, and settle tokenized receivables on Injective. The project also involved receivables generated from actual trade transactions between POSCO’s international subsidiaries and their trading partners.