LG Electronics to Build Custom Arbitrum-Based L2 to Automate Programmatic Advertising
LG Electronics is developing a proprietary blockchain network designed to modernize how digital advertising inventory is bought, sold, and verified, aiming to curb fraud in programmatic markets.
Fortune reported on June 11, 2026 that LG has teamed up with Arbitrum to create a custom Ethereum Layer-2 (L2) blockchain tailored for high-volume ad operations. The system is intended to support automated ad marketplaces across LG's global footprint of roughly 216 million smart TVs through its advertising unit, LG Ad Solutions.
According to the report by Fortune journalists Jack Kubinec and Ben Weiss, the platform relies on a shared onchain database that records advertising inventory and verified user interaction data. By running on a dedicated L2 network, LG expects to batch transactions at low cost and high throughput, a requirement for large-scale programmatic advertising.
The infrastructure is built to function as an immutable ledger of available ad slots across publishers, capturing metrics such as impressions and engagement. Smart contracts would enable automated buying and selling, reducing or eliminating the manual negotiations and reconciliations common in today's workflow.
LG has moved beyond early technical testing. The company completed a pilot with an unnamed Japanese advertising agency and plans to conduct a commercial evaluation later in 2026.
Samuel Byungsun Park, who leads LG Electronics' blockchain research department, told Fortune the platform remains in active testing. "We are evaluating whether this approach can deliver meaningful value to advertisers, publishers and audiences," Park said.
Arbitrum co-founder Steven Goldfeder emphasized the efficiency gains from putting programmatic advertising infrastructure directly on decentralized ledgers. "It means that you can basically run the market in an automated way in software," he said. "You don't need manual interventions".
The initiative fits LG's broader push into software, services, and Web3. LG says it has an installed base of about 49 million smart TVs in the U.S. and roughly 216 million worldwide through LG Ad Solutions.
LG has been integrating blockchain into its corporate plans for years. In 2018, its subsidiary LG CNS launched "Monachain," an enterprise blockchain aimed at digital authentication and supply chain management. At its Annual General Meeting in March 2022, LG amended its corporate charter to add "development and selling of blockchain-based software" and the "sale and brokerage of cryptocurrency" as permitted business activities. Later in 2022, the company introduced "Wallypto," a decentralized crypto wallet built on Hedera Hashgraph, and launched the LG Art Lab NFT platform for smart TVs, which it discontinued in 2025.
The project underscores a shift in how LG is positioning blockchain: less as a crypto-adjacent consumer product and more as backend infrastructure for a mature, multibillion-dollar industry that faces persistent issues including inefficiency, opaque reporting, and ad fraud. If LG's commercial rollout succeeds, it could offer a template for other media and technology firms looking to upgrade digital advertising systems at scale.
