Chainlink, a blockchain infrastructure company, said it joined Project Pangea, a task force with FairSquareLab, UniKA, and Qivalis, to test foreign-exchange settlement using euro and won pegged stablecoins.

It aims to start live cross-border transactions within 12 months.

UniKA is a South Korean banking alliance whose steering committee includes Shinhan Bank, JB Bank, and Kbank.

Qivalis is a euro stablecoin consortium backed by 37 banks in Europe.

Chainlink said the groups represent more than US$10 trillion in assets under management.

Banks would keep using Swift and ISO 20022 messaging, while Chainlink translates payment instructions onto the Pangea L1 Network for atomic payment-versus-payment swaps.

The aim is to move foreign-exchange settlement from T+2, or two business days after a trade, to T+0, or same-day settlement.

The BIS says this model eliminates foreign-exchange settlement risk by ensuring one currency is paid only if the other is too.

The project targets the Europe-South Korea trade corridor, which handles more than US$150 billion in goods and services a year.

Any launch still depends on regulation because MiCA requires authorisation and reserves for euro stablecoin issuers, while South Korea has proposed rules that would require approval, reserves, and redemption obligations for fiat-linked tokens.

🔗 Source: CoinDesk