On June 23, blockchain oracle network Chainlink announced the launch of Project Pangea, a cross-border stablecoin settlement pilot involving European and South Korean banks. The initiative brings together FairSquareLab, a South Korean digital asset infrastructure firm; the Unified Korea Alliance (UniKA), a consortium of over a dozen South Korean commercial banks; and the Qivalis euro stablecoin consortium, backed by 37 European banks. The collaboration signals an expanding cross-border approach to blockchain adoption in institutional finance.
Core Mechanic: Atomic Swaps for Euro and Won Stablecoins
Under Project Pangea's framework, participants will explore the direct and atomic swap of euro- and won-denominated stablecoins. An atomic swap enables two digital assets to be exchanged simultaneously within a single transaction flow, settling only if both parties meet conditions. The project leverages Chainlink's data infrastructure (including price oracles and cross-chain interoperability protocols) alongside FairSquareLab's on-chain FX settlement technology to facilitate seamless transactions.
Qivalis has already been developing compliant stablecoins backed by euro deposits in Europe, while UniKA represents major South Korean banks advancing digital asset innovation. Project Pangea aims to evaluate how bank-issued compliant stablecoins can be used for direct, atomic cross-border payments, potentially replacing traditional correspondent banking models.
Evaluation Phase: No Firm Timeline for Production
At this stage, the initiative is established as a working group rather than an active payment network, with no official timeline for moving toward production. Still, Project Pangea underscores banks' growing interest in tokenized deposits and regulated stablecoin models. According to the Bank for International Settlements, global FX markets see a daily trading volume of approximately $9.6 trillion, highlighting the need for efficient, secure institutional-grade settlement infrastructure.
Chainlink has previously collaborated with DTCC and Robinhood on tokenized asset and stock platforms. This latest joint pilot with central and commercial banks expands its use case into compliant stablecoin settlement scenarios.
Global Momentum: Multiple Regions Push Stablecoin Settlement
Similar initiatives are emerging elsewhere. Fintech startup OpenFX recently secured $94 million in funding to expand its stablecoin-based payment network, targeting Southeast Asia and Latin America as key markets. With clearer regulatory frameworks in the U.S. and Europe, global financial institutions are paying closer attention to stablecoin integration, particularly in wholesale infrastructure and institutional payments rather than retail transactions.
Ripple CEO Brad Garlinghouse described the current phase as a pivotal moment for stablecoins, noting that financial entities are actively exploring how to integrate this technology into their operations.
Citigroup Forecast: Stablecoin Market Could Reach $1.9 Trillion by 2030
Citigroup projects the global stablecoin market could rise from around $315 billion to $1.9 trillion by 2030, with a most optimistic scenario reaching $4 trillion. Drivers include continued adoption in crypto markets, a gradual shift from physical U.S. dollar banknotes to digital dollars, and increasing use of stablecoins as short-term liquidity instruments for both USD and local currency holdings.
The expansion of initiatives like Project Pangea illustrates how collaboration between blockchain firms and major banking groups might transform global payments and settlement. Banks' focus on regulated, tokenized solutions marks a significant shift in addressing cross-border transaction challenges. As global transaction volumes rise, industry stakeholders are closely monitoring pilot projects that could set the stage for next-generation financial settlement infrastructure.