Chainlink has officially launched Project Pangea in collaboration with European and South Korean banks, aiming to settle foreign exchange transactions instantly using stablecoins. The consortium includes Chainlink, FairSquareLab, UniKA, and Qivalis, collectively representing over $10 trillion in aggregated assets. UniKA's steering committee comprises Shinhan Bank, JB Bank, Kbank, FairSquareLab, and OBDIA, with more than 10 additional South Korean commercial banks participating, signaling strong institutional backing from both regions.
Global FX markets see daily volumes of approximately $9.6 trillion, yet fragmented infrastructure and lengthy processing times create extra costs and delays. Project Pangea aims to minimize reliance on intermediary currencies by offering an atomic swap model based on payment-versus-payment principles, tackling a longstanding industry bottleneck.
Three-Layer Architecture: Swift, CCIP, and Pangea L1
The technical stack is built on three layers. The first handles bank messaging via Swift and ISO 20022 standards. The second relies on Chainlink's CCIP, Data Streams, and Runtime Environment. Settlement takes place on the third layer through smart contracts deployed on Ethereum, Polygon, and the custom Pangea L1 blockchain. Developed by FairSquareLab, Pangea L1 is a consensus-focused chain not tied to any single country or bank. At the protocol level, oracle data feeds are processed before any other transactions in each block, ensuring FX swaps settle at current market prices and reducing manipulation risk.
Fernando Vazquez, Head of Capital Markets at Chainlink Labs, noted that the initiative is designed to revamp today's fragmented FX environment by enabling direct atomic swaps of currencies via stablecoins. The project integrates the ISO 20022 messaging standard with the existing Swift network, allowing participating banks to connect without overhauling internal payment systems.
Euro Stablecoin Consortium Qivalis Joins
Qivalis, a euro stablecoin consortium backed by 37 European banks, provides a foundational currency layer within the network. Using Chainlink's CCIP, euro stablecoin transfers can occur securely across multiple blockchains and link seamlessly with the settlement chain for the Korean won. Real-time FX rates are integrated through Chainlink Data Streams, providing up-to-the-second pricing.
Jean-Luc Gustave, Head of APAC Partnerships at Qivalis, emphasized that a lower-friction model for cross-border payments could reduce settlement risk and significantly boost intraday liquidity efficiency. The program is positioned to expand regulated stablecoin use among institutions for high-volume currency flows between Europe and Asia. The report also revealed that Project Pangea is designed to evolve into a multi-currency settlement platform, adding new institutions and currency corridors as the network grows.