The global payments industry may be on the verge of a major shift. Project Pangea, a new initiative backed by leading South Korean banks, 37 European banks, and blockchain infrastructure firm Chainlink, is testing a faster way to move money across borders.
Today, many foreign exchange transactions take up to two days to settle. This process, known as T+2 settlement, ties up capital and creates settlement risk. Project Pangea wants to change that by using stablecoins pegged to the euro and South Korean won.
The goal is to move from a two-day settlement cycle to near-instant settlement through atomic payment-versus-payment swaps. In this model, both sides of a transaction settle at the same time or not at all.
Also Read: Chainlink-Powered Project Pangea Seeks Faster Global Foreign Exchange Settlement
Project Pangea Connects Traditional Banking and Blockchain
Project Pangea is more than a technology trial. According to Chainlink executives, the initiative is focused on building real infrastructure that can support live transactions within a compliant legal framework.
The project combines Chainlink technology with the global SWIFT messaging network. Banks can continue using the systems they already rely on while Chainlink translates payment instructions into blockchain-based settlements on the Pangea L1 Network.
This approach allows financial institutions to access blockchain settlement rails without replacing existing infrastructure. It also supports established banking standards such as ISO 20022, making adoption easier for large institutions.
Project Pangea Focuses on $150B Trade Corridor
The initiative is centered on the Europe-South Korea trade corridor, which handles more than $150 billion in goods and services each year. That makes it one of the world’s largest trading routes and a strong testing ground for modern settlement systems.
The project also reflects growing stablecoin adoption across Asia, where a significant share of global stablecoin payment activity already occurs.
Some observers have compared the initiative to Ripple’s efforts in cross-border payments. However, Chainlink says Project Pangea is not designed as a rival. Instead, it aims to provide technology that helps banks move money faster and more efficiently.
If successful, Project Pangea could reduce liquidity costs, lower settlement risk, and give businesses access to funds in minutes instead of days.
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