chain link joined forces with banking consortiums from Europe and South Korea to launch it. Pangea Project. The initiative aims to enable near-instant settlement of currency transactions from the euro to the South Korean won using regulated stablecoins, replacing the traditional multi-day delays that currently characterize most global currencies. foreign currency Sunday.
Traditional foreign exchange transactions typically operate on a T+2 cycle, meaning transactions can take up to two business There are days left until it ends. This delay creates counterparty and residential There are risks for banks and their customers, especially in high-volume corridors such as the Europe-South Korea trade route.
Project Pangea aims to compress this timeline to T+0 (essentially real-time or same-day atomic settlement) by facilitating direct swaps between compatible EUR-pegged and KRW-pegged stablecoins.
The project brings together more than 50 financial institutions that collectively manage more than $10 trillion in assets under management.
on Europe On the other side, Qivalis, a euro stablecoin consortium backed by 37 leading banks, is participating.
Inside South KoreaUniKA (United Korea Alliance) is coordinating this effort with a steering committee that includes Shinhan Bank, JB Bank, Kbank, FairSquareLab and OBDIA, as well as more than 10 commercial banks.
FairSquareLab, a Korean digital asset infrastructure provider, contributes to on-chain FX clearing technology.
Chainlink is at the core of the solution decentralized Oracle network providing trusted off-chain data, cross-chain interoperability and smart contract orchestration.
These capabilities integrate with ISO 20022 messaging standards and existing Swift infrastructure.
The result is a Payment-to-Payment (PvP) mechanism that allows banks to exchange two stablecoins atomically; thus ensuring that one leg of the trade occurs only if the other leg does, without relying on intermediary bridge currencies.
By activating directly, bilaterally stablecoin Through swaps, Project Pangea reduces operational friction, reduces costs associated with long-term settlement periods, and minimizes exposure to market fluctuations during the settlement window.
Participants expect the framework to increase efficiency and transparency internationally foreign currency Streams while leveraging regulated digital assets that maintain full fiat support and compatibility.
The announcement was made on: ZurichHe emphasizes that institutional interest in moving traditional capital markets to the chain is increasing.
Industry professionals now generally view collaboration as part of a broader trend. banks Explore tokenized assets and blockchain infrastructure to facilitate global payments and foreign exchange.
If successful, the project could serve as a blueprint for other currency pairs and corridors and stablecoinGrounded settlement models in regulated finance. Pangea Project, which is currently in the development and testing phase, to show How can decentralized technology complement rather than replace legacy banking systems to provide better service? cross-border transactions.
