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Chainlink Backs Global Banking Pilot to Test Stablecoin-Powered FX Settlements
- Project Pangea brings together Chainlink, banking groups and digital asset firms from Europe and South Korea to explore blockchain-based FX settlement.
- The initiative will test direct atomic swaps between euro- and won-backed stablecoins using existing banking infrastructure and blockchain technology.
- Participants are evaluating whether stablecoins can help improve efficiency in cross-border settlement within the US$9.6 trillion (AU$13.92 trillion) daily FX market.
Chainlink has partnered with banking and digital asset organisations from Europe and South Korea to launch Project Pangea, a collaborative initiative examining stablecoin-based foreign exchange settlement. The project includes FairSquareLab, UniKA and Qivalis and brings together more than 50 financial institutions representing over US$10 trillion (AU$14.5 trillion) in assets under management.
The initiative is designed to test direct atomic swaps between regulated fiat-referenced digital assets, including euro and South Korean won stablecoins. Participating institutions will evaluate whether blockchain infrastructure can support cross-border settlement in real time.
Project Pangea combines existing banking systems with blockchain-based settlement technology. The framework incorporates Chainlink’s interoperability and data infrastructure, FairSquareLab’s settlement technology, Swift connectivity and ISO 20022 messaging standards to facilitate Payment-versus-Payment settlement between stablecoins.
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A new approach to cross-border transactions
The project is focused on addressing inefficiencies in a global foreign exchange market that processes around US$9.6 trillion (AU$13.92 trillion) each day. Participants are exploring whether direct settlement between regional stablecoins can reduce delays associated with traditional settlement processes.
No timeline has been provided for a live implementation, and Project Pangea remains an exploratory working group. However, the initiative reflects broader efforts by financial institutions to assess regulated stablecoins and blockchain technology as potential tools for cross-border settlement and foreign exchange infrastructure.
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Author
Rachel Lourdesamy
Rachel is a freelance writer based in Sydney with experience within financial services, marketing, and corporate communications in the APAC region. An avid reader and a graduate of the University of Sydney, she covers topics including business, finance and human interest.
