Chainlink has joined a working group with European and South Korean banks to explore stablecoins for foreign exchange settlement, modernizing financial infrastructure.
On Tuesday, Chainlink announced Project Pangea alongside FairSquareLab, the Unified Korea Alliance (UniKA), and Qivalis. The initiative aims to evaluate direct swaps of euro- and South Korean won-denominated stablecoins using Chainlink’s data infrastructure and FairSquareLab’s technology.
Project Pangea showcases banks experimenting with stablecoins for wholesale financial infrastructure, rather than consumer payments. The global foreign exchange market processes approximately $9.6 trillion daily.
While Project Pangea is currently a working group, banks are looking into tokenized deposits and regulated stablecoins to enhance cross-border payments.
Global institutions are increasingly interested in stablecoins to improve corporate payments and foreign exchange transactions, supported by clearer regulations. Citigroup projects the stablecoin market will grow from $315 billion today to $1.9 trillion by 2030, depending on crypto market adoption and the shift to digital dollars.
In its most optimistic outlook, Citigroup estimates a potential rise to $4 trillion by 2030.