POSCO Puts Real Trade Receivables on Avalanche Blockchain After AI Verification

South Korean trade giant POSCO has placed real trade receivables on the Avalanche blockchain after using artificial intelligence to verify and reconcile the underlying commercial documents, according to information shared by @coinbureau on X. The initiative involves $22 billion POSCO and represents the company’s second blockchain pilot within a month.

The project uses AI to reconcile invoices, purchase orders, credit notes and shipping documents before converting the verified receivables into digital assets on-chain. The development marks another step in POSCO’s exploration of blockchain-based financial infrastructure and follows a separate pilot involving tokenized receivables on Injective with LG CNS in July.

POSCO also plans to explore stablecoin-based cross-border settlement as part of its broader investigation into digital financial systems.

POSCO Uses AI to Verify Trade Receivables

The latest initiative combines artificial intelligence with blockchain technology to digitize existing trade receivables.

Before the receivables were placed on Avalanche, POSCO used AI to reconcile multiple types of commercial documentation. The process included invoices, purchase orders, credit notes and shipping documents.

These documents provide information associated with commercial transactions and outstanding payments. Reconciling them before tokenization is intended to establish consistency between the underlying records and the receivables being represented digitally.

Once the documents were verified through the AI-based process, the trade receivables were converted into digital assets and recorded on the Avalanche blockchain.

The approach illustrates how blockchain applications can extend beyond cryptocurrency trading. Instead of creating a digital asset without an underlying commercial transaction, the pilot connects on-chain records with existing business receivables.

For companies handling large volumes of trade documentation, automated reconciliation can also provide a digital process for checking information before financial assets are represented on a blockchain.

Second Blockchain Pilot in One Month

The Avalanche project is the second blockchain pilot undertaken by POSCO within a month, according to the information shared in the X post.

In July, the company tested tokenized receivables on Injective in collaboration with LG CNS. That earlier initiative also focused on bringing trade receivables into a blockchain-based environment.

The two pilots indicate that POSCO is evaluating multiple blockchain networks and approaches for handling tokenized financial assets.

Tokenization involves representing an asset or financial claim digitally on a blockchain. In the case of trade receivables, the underlying asset is an amount owed to a company from a commercial transaction.

By placing such assets on-chain, companies can potentially create digital representations that can be transferred or integrated with blockchain-based financial applications. The practical benefits depend on how the underlying assets are structured, verified and legally recognized.

POSCO’s separate pilots on Injective and Avalanche provide the company with opportunities to examine different blockchain infrastructures and their suitability for institutional financial applications.

Avalanche Pilot Connects Traditional Finance With Blockchain

The use of Avalanche in the latest project places conventional trade finance activity on blockchain infrastructure.

Trade receivables are an important part of corporate finance because they represent money a business expects to receive from customers. Managing those receivables typically involves documentation, reconciliation and payment processes across multiple parties.

The POSCO pilot introduces a blockchain layer after the relevant commercial records have been reconciled.

The role of AI is particularly important in the process described in the update. Rather than relying solely on manual verification, the company used artificial intelligence to compare and reconcile invoices, purchase orders, credit notes and shipping documents.

The resulting receivables were then converted into digital assets on-chain.

This combination of AI and blockchain creates a workflow in which artificial intelligence is used to process and verify information, while blockchain technology is used to record the resulting digital assets.

The initiative reflects a broader interest among companies and financial institutions in using blockchain technology to modernize existing financial processes without necessarily replacing the underlying commercial transactions.

POSCO Plans to Explore Stablecoin Settlement

POSCO’s blockchain experiments could also extend into international payments.

According to the information shared by @coinbureau, the company plans to explore stablecoin-based cross-border settlement next.

Stablecoins are digital assets designed to maintain a stable value relative to an underlying currency or asset. They are increasingly being examined for payment and settlement applications because they can transfer value through blockchain networks.

Cross-border settlement is one area where blockchain-based payment systems are being investigated by companies and financial institutions. Traditional international transactions can involve multiple intermediaries, currencies and settlement processes.

POSCO’s planned exploration of stablecoin-based settlement would therefore represent another step in its examination of digital financial infrastructure.

The company’s recent pilots show an expanding focus on tokenized receivables and blockchain-based settlement. The Avalanche initiative connects verified trade receivables with on-chain assets, while the July pilot with LG CNS examined a similar concept on Injective.

With stablecoin-based cross-border settlement now under consideration, POSCO’s blockchain strategy is moving across several areas of corporate finance, including receivables management, asset tokenization and international payments.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.