Chainlink has joined Project Pangea alongside European and South Korean banks to modernize cross-border foreign exchange settlements using regulated stablecoins. The initiative seeks to enable near real-time transactions, reduce settlement risks, and improve liquidity efficiency, highlighting growing institutional interest in blockchain-based payment infrastructure.
Chainlink Joins $10 Trillion Banking Coalition
Blockchain infrastructure provider Chainlink has become part of Project Pangea, a cross-border settlement initiative involving 47 banks from Europe and South Korea that collectively manage more than $10 trillion in assets.
The project aims to enable near-real-time foreign-exchange settlements using regulated euro and Korean won stablecoins.
The coalition includes Qivalis, a euro stablecoin consortium supported by 37 European banks, and UniKA, a Korean banking alliance representing more than 10 commercial banks.
Together, the participants are exploring how blockchain technology can improve the efficiency of international payments while remaining compliant with existing financial regulations.
Chainlink will provide the middleware layer that converts SWIFT payment instructions into on-chain atomic settlements.
This allows banks to access blockchain-based settlement infrastructure without replacing their current payment systems.
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Stablecoins Move Closer to Institutional Finance
Project Pangea seeks to reduce settlement times from the traditional T+2 model, which can take up to two business days, to near-instant T+0 settlement.
The initiative will use regulated stablecoins backed one-to-one by euros and Korean won. The consortium plans to test atomic payment-versus-payment settlements, ensuring both sides of a foreign exchange transaction are completed simultaneously.
This approach is designed to lower counterparty risk, improve capital efficiency, and reduce liquidity requirements for participating institutions.
The project starts off by analyzing the trade corridor between Europe and South Korea, which is one of the powerhouses, transporting more than $150 billion worth of trade every year. This trade route is among the top 15 trade corridors in the world.
While banks continue their progress throughout the world, the trend towards combining tokenized assets and regulatory-compliant stablecoins into conventional finance continues.
Financial institutions turn to blockchain platforms in an effort to reduce expenses and facilitate international transactions. This creates new opportunities for companies like Chainlink.
Chainlink Connects Traditional Finance With Blockchain
Rather than replacing the existing financial circulatory system, Project Pangea is designed to run parallel to it. Banks will continue to use SWIFT and ISO 20022 messages but will take advantage of blockchain for settling payments.
At the beginning of a transaction, the technology from Chainlink will turn payments into atomic swaps using the Pangea L1 Network, ensuring that blockchains can settle transactions while preserving the pace of banking operations.
The move highlights the increasing demand for digital settlement solutions. According to industry statistics, nearly 60% of all stablecoin payments worldwide are processed in Asia, indicating strong demand for rapid, efficient payment channels.
The participants involved hope to roll out regulated stablecoin payments within the coming year. Project Pangea marks the beginning of an overall trend in global finance, in which banks are looking towards the development of settlement systems and digital assets that have been built on blockchain technology.
Success with this project would demonstrate how existing financial entities can incorporate token-based payment systems within their existing structures without having to replace them.
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