Chainlink Teams Up With European and Korean Banks for Faster Money Transfers

Imagine sending money between two countries instantly — without waiting days for banks to process it. That's the goal of a new project just announced by Chainlink and a group of major banks.

Chainlink (a company that connects blockchain technology to real-world data) has joined forces with European and South Korean banking groups to test a new way of moving money across borders. The project is called Project Pangea.

Here's who is involved:

• Chainlink — provides the data technology behind the system
• FairSquareLab — a South Korean company building the settlement technology
• UniKA — a group of over a dozen Korean commercial banks
• Qivalis — a euro stablecoin group backed by 37 European banks

The idea is to use stablecoins (digital coins designed to always equal the value of a real currency, like the euro or Korean won) to settle foreign exchange (FX) trades. FX simply means swapping one currency for another — for example, exchanging euros for Korean won.

Why does this matter? The global FX market is enormous. According to the Bank for International Settlements:

• About $9.6 trillion is traded in currencies every single day

Right now, these trades can be slow and costly to settle. The banks want to test whether stablecoins can make this faster, cheaper, and available in real time — using "atomic swaps," which means both sides of a trade happen at the exact same moment, so neither party risks losing money.

Important to note: Project Pangea is still just a study group — not a live system yet. The banks are simply experimenting, and there's no launch date announced.

This fits a bigger trend. Banks worldwide are increasingly testing stablecoins for large business transactions (not everyday shopping), helped by clearer rules in the US and Europe. For example, fintech startup OpenFX recently raised $94 million for a similar stablecoin payments network.

In short: big banks are exploring whether crypto-style technology can modernize the slow, old systems that move trillions of dollars around the world. It's early days, but the experiment could one day make international payments much smoother.

This is an AI-generated summary. Read the original article at: https://cointelegraph.com/news/chainlink-europe-korea-banks-stablecoin-fx-settlement-project-pangea?utm_source=rss&utm_medium=rss&utm_campaign=rss