Tech Giant LG Partners With Arbitrum to Target $679B Digital Advertising Industry Using Blockchain
South Korean electronics manufacturer LG teams up with Arbitrum to develop a blockchain solution for digital advertising transactions, becoming the latest major corporation to create its own blockchain infrastructure.
Electronics powerhouse LG Electronics from South Korea has partnered with Arbitrum, an Ethereum layer-2 platform, to develop a blockchain-powered advertising platform designed to cater to the digital advertising sector.
"We are evaluating whether this approach can deliver meaningful value to advertisers, publishers and audiences," said Samuel Byungsun Park, the head of LG Electronics' blockchain research lab.
According to Dentsu, a major global advertising corporation, digital advertising expenditure is projected to have hit $679 billion in 2025, representing 68% of total global advertising spending.
Conventional advertising networks rely on expensive third-party intermediaries to facilitate automation and oversee the purchase and sale of advertising inventory between publishers and advertisers.
An advertising network built on blockchain technology would eliminate these intermediaries, seeking to enhance the efficiency of advertisement purchases and offer advertisers greater transparency regarding their audience reach.
"It means that you can basically run the market in an automated way in software," Arbitrum co-founder Steven Goldfeder told Fortune. "You don't need manual intervention."
Arbitrum's native token (ARB) saw its value increase by 5.44% on Thursday following the announcement of the new layer-2 blockchain initiative, which Arbitrum publicly acknowledged on X.
Cointelegraph contacted Arbitrum and LG Electronics for comment.
LG's exploration of cryptocurrency-related opportunities spans close to ten years.
Back in 2018, LG Corporation's subsidiary LG CNS introduced its proprietary blockchain platform named "Monachain," designed for enterprise applications including digital authentication, payment processing and supply chain tracking.
During the peak of the 2022 NFT market surge, LG Electronics created Wallypto, a decentralized cryptocurrency wallet built on the Hedera Hashgraph network. The wallet functioned as a complementary tool for LG Art Lab, a non-fungible token marketplace that enabled users to showcase digital art collections on their television screens.
The NFT platform was shut down in June 2025, adding to a wave of NFT marketplace closures that year, while LG Electronics terminated Wallypto a few months later in September.