Chainlink joins banks on FX settlement project

• Chainlink joined a European and South Korean banking initiative to explore stablecoin-based foreign exchange settlement.
• Project Pangea will evaluate direct swaps between euro and South Korean won stablecoins using blockchain infrastructure.
• The initiative reflects growing interest among financial institutions in using regulated stablecoins for wholesale payments and settlement.

Chainlink (CRYPTO:LINK) has joined Project Pangea, a working group bringing together European and South Korean banking organisations to study whether regulated stablecoins can support real-time foreign exchange settlement.

The initiative includes South Korean digital asset infrastructure company FairSquareLab, the Unified Korea Alliance consortium and Qivalis, a euro stablecoin consortium backed by 37 European banks.

Project Pangea will evaluate direct atomic swaps between euro-denominated and South Korean won-denominated stablecoins using Chainlink's data infrastructure and FairSquareLab's foreign exchange settlement technology.

The participants said the project will focus on testing wholesale financial applications rather than consumer payments, with the goal of assessing whether blockchain-based infrastructure can improve cross-border settlement processes.

No implementation timeline has been announced, and the initiative remains a research and development working group rather than a live payment network; according to the Bank for International Settlements, the global foreign exchange market processes approximately US$9.6 trillion in daily trading volume.

The project follows a broader trend of banks exploring tokenised deposits and regulated stablecoins as tools for cross-border payments, liquidity management and foreign exchange transactions.

Citigroup has projected that the global stablecoin market could grow to US$1.9 trillion by 2030 from approximately US$315 billion today, driven by wider institutional adoption and increasing use of digital currencies in financial markets.

At the time of reporting, Chainlink price was $7.64.