Working Group Plans Onchain FX Settlement Project

Chainlink and South Korean digital assets tech provider FairSquareLab say they have initiated a working group across the Asian country and Europe to “unlock real-time, stablecoin-based, cross border FX settlement models”.

The working group, operating under the Project Pangea header, includes UniKa, a Korean coalition of banks and fintechs, and Qivalis, a euro stablecoin consortia consisting of 37 European banks.

The group says the initiative is aimed at unlocking the direct, atomic swap of regulated, fiat-referenced digital assets (including EUR and KRW stablecoins) by leveraging Chainlink’s data, interoperability, and orchestration standards, along with FairSquareLab’s onchain FX settlement technology. It will use ISO 20022 messaging standards and existing Swift infrastructure to enable banks to execute direct, atomic Payment-versus-Payment (PvP) swaps of compliant EUR and KRW stablecoins.

As part of the project, Chainlink’s cross-chain interoperability standard will enable transfers of EUR stablecoins from their native networks to the KRW settlement chain, the firm’s data streams will provide FX market data for the project’s proactive market maker engine, ensuring onchain quotes are synchronised with global markets. The Chainlink runtime environment will act as the orchestration layer between Swift and blockchains.

FairSquareLab’s onchain multi-currency FX settlement technology anchors price discovery directly to FX oracle quotes rather than a bonding curve, and aims to minimise slippage by exchanging at oracle rates, while per-asset depletion barriers safeguard pool liquidity from exhaustion. “The result is a simple, predictable structure optimized for large-scale interbank currency conversion,” the firm says. Its Pangea L1 Network is where the FX settlement contract is deployed and operates, serviced from neutral ground independent of any single country or participating bank. At the protocol level, oracle data updates are guaranteed to execute first — ahead of every other transaction in a block — so the chain itself ensures that all FX swaps settle against the current market price. “This gives participating institutions a trusted, neutral infrastructure for T+0 atomic FX settlement,” the firm asserts.

“Project Pangea upgrades the fragmented foreign exchange model of today with direct, atomic currency swaps using stablecoins,” claims Fernando Vazquez, president of capital markets at Chainlink. “This is a clear signal that global finance is increasingly moving onchain.”

Jean-Luc Gustave, head of partnerships, APAC, Qivalis, adds, “Project Pangea could position Qivalis’ upcoming euro stablecoin at the heart of institutional FX innovation, establishing a new paradigm for cross-border settlement between Europe and South Korea. Connecting regulated EUR and KRW stablecoins through atomic settlement would move the conversation past theoretical use cases, proving how next-generation infrastructure would optimise international trade corridors.

“For global participants, migrating to a friction-free cross-border model could unlock significant capital efficiency by eliminating traditional settlement risk and reducing intraday liquidity costs, safely opening the door to high-volume institutional flows,” he adds.

Highlighting the benefit to Korean markets, which the local authorities are working to interationalise further, Joonhong Kim, CEO, FairSquareLab, says, “For Korea, Project Pangea is more than an efficiency gain — it opens a path for the Korean won to connect more directly with global currency markets, reducing reliance on intermediary currencies. Together with Qivalis and Chainlink, and leading the UniKA alliance, Fairsquarelab is building a network that brings the Korean banking sector into a new era of real-time, cross-border settlement and redefines how value moves across borders.”