Chainlink, 47 banks to explore stablecoin FX settlement

Key facts

• Chainlink is collaborating with 47 South Korean and European banks on Project Pangea.
• The project aims to utilize stablecoins for settling international currency trades.
• The initiative seeks to enable near real-time settlement of multimillion-dollar currency trades.
• Project Pangea is a working group, not a live payment network, with no production timeline announced.

Chainlink has announced Project Pangea, a collaboration with 47 banks across South Korea and Europe, to explore the use of regulated euro and won stablecoins for foreign exchange settlement. The initiative aims to enable direct, atomic swaps of stablecoins, potentially facilitating near real-time settlement of large currency trades and accelerating international money transfers.

This project represents a broader trend of financial institutions experimenting with tokenized deposits and stablecoins to modernize legacy financial infrastructure, particularly for wholesale financial applications rather than consumer payments. The global foreign exchange market processes approximately $9.6 trillion in daily trading volume, highlighting the potential impact of efficiency gains.

While Project Pangea is currently a working group without a set production timeline, it aligns with growing institutional interest in stablecoins. Citigroup projects the global stablecoin market could expand significantly, reaching $1.9 trillion by 2030, driven by increased adoption, a shift towards digital currencies, and their use as short-term liquidity stores.

Similar initiatives are emerging, such as fintech startup OpenFX raising funds for its stablecoin-based payments network. Regulatory clarity in regions like the US and Europe is also aiding the exploration of stablecoins for corporate payments and cross-border settlements.