Chainlink Partners With Over 50 Banks to Launch FX Settlement Project

Key Insights

• Chainlink partners with over 50 banks to redefine the FX market by enabling instant settlements.
• The Oracle network brings together dozens of global financial institutions from across Europe and South Korea
• LINK is under heavy selling pressure, falling 4% over the last 24 hours

Chainlink has unveiled Project Pangea, a new initiative focused on modernizing foreign exchange settlement through blockchain infrastructure. The decentralized oracle network said the project brings together more than 50 financial institutions with over $10 trillion in combined assets under management.

The initiative includes two major banking groups: the Unified Korea Alliance (UniKA), which represents more than 10 South Korean banks and financial institutions, and Qivalis, a euro stablecoin consortium backed by 37 European banks.

Project Pangea highlights the growing effort by traditional financial institutions to explore blockchain-based settlement systems while maintaining compliance with existing banking standards.

Project Pangea Targets Faster Cross-Border Settlements

According to the announcement, the goal of the project is to address the existing 48-hour settlement cycle and fragmentation in the foreign exchange markets.

It plans to do this by exploring the exchange of regulated stablecoins through atomic payment versus payment (PvP) settlement. This would evaluate whether banks can swap stablecoins and settle simultaneously on both sides of the trade.

To do this, Project Pangea will leverage Chainlink technology alongside the existing SWIFT Infrastructure and ISO 20022 messaging that banks already use.

Another partner in the project, FairSquareLab, will launch Pangea L1, a neutral settlement dedicated network on which all FX swaps will be settled.

Chainlink plays a crucial role in the project functionality. It will provide the oracle data, interoperability, and orchestration standards required for cross-chain and cross-border transactions.

With Chainlink technology, banks can connect to any public or private network using their existing systems and messaging standards.

If successful, this initiative is expected to unlock near-instant FX settlement and atomic FX transactions using regulated stablecoins pegged to the Euro and the Korean Won.

According to Chainlink, the focus is on building the infrastructure rather than just testing out the concept. Thus, it plans to have a live transaction within a regulatory-compliant framework in the next 12 months.

LINK Sees Massive Drop in Value Despite Chainlink Institutional Growth

Meanwhile, the development highlights the increasingly fundamental role that Chainlink is playing within the crypto ecosystem.

The oracle provider has seen a recent surge in value secured in recent weeks, thanks to the migration of DeFi protocols to its cross-chain infrastructure after the KelpDAO exploit.

It also plays a crucial role in integrating traditional finance with blockchain technology. In a recent move, it launched the APAC Equities Streams, which brings real-time price data for Korean and Japanese stocks onchain.

Despite the adoption of Chainlink technology by TradFi and DeFi, LINK has struggled for several months now. The token is down 4% in the past 24 hours amid a market-wide crash, with Bitcoin slipping to $62,000.

However, its performance has been poor even before today, with the token being on a downward trend since October 2025. It is currently trading at $7.58, a far cry from its peak of $52.87.

The post Chainlink Partners With Over 50 Banks to Launch FX Settlement Project appeared first on The Market Periodical.