Articles / tokenization-rwa / Chainlink Launches Project Pangea With 50+ Banks Across 16 Countries for T+0 FX Settlement
Chainlink Launches Project Pangea With 50+ Banks Across 16 Countries for T+0 FX Settlement
Global FX Market Size
$9.6 trillion
The total daily value of the global foreign exchange market.
Core Consortium Partners
3
The number of core consortium partners involved in Project Pangea.
Participating Banks
50+
The number of banks participating in Project Pangea across 16 countries.
§ 01 Executive Snapshot
- What: Chainlink launched Project Pangea aimed at T+0 atomic settlement for the global FX market.
- Who: Over 50 banks across 16 countries, including consortium partners Qivalis, UniKA, and FairSquareLab.
- Why it matters: The initiative seeks to revolutionize the $9.6 trillion-a-day FX market by enabling direct Payment-versus-Payment swaps using stablecoins.
§ 02 Key Developments
- Project Pangea utilizes Chainlink's oracle technology, Swift's ISO 20022 messaging, and FairSquareLab's settlement tech for FX swaps.
- The project architecture consists of three layers: banking layer, connectivity layer with Chainlink CCIP, and a settlement layer on Ethereum and Polygon.
- The Pangea L1 operates independently of any country or bank, ensuring real-time price execution for FX swaps.
§ 03 Strategic Context
- The global FX market, valued at $9.6 trillion a day, currently suffers from delays due to intermediary currency conversions.
- Project Pangea represents a significant shift towards on-chain financial operations, reflecting a trend of institutional adoption of blockchain technology.
§ 04 Strategic Implications
- The immediate implication is the reduction of settlement delays in cross-border FX transactions, enhancing liquidity and efficiency.
- Long-term, Project Pangea could set a precedent for future blockchain integrations in traditional banking and finance sectors.
§ 05 Risks & Constraints
- Regulatory hurdles may arise as banks navigate the integration of blockchain technology with existing systems.
- Dependence on the adoption of ISO 20022 messaging standards across banks could pose challenges for widespread implementation.
§ 06 Watchlist / Forward Signals
- The DTCC's production target for its tokenized collateral platform is set for Q4 2026, which may influence Project Pangea’s timeline.
- Future developments will be signaled by the number of banks adopting the Pangea framework and the volume of transactions processed through it.
§ 07
Frequently Asked Questions
What is Project Pangea?
Project Pangea is an initiative launched by Chainlink aimed at enabling T+0 atomic settlement for the global FX market.
Who is involved in Project Pangea?
Over 50 banks across 16 countries are involved, including consortium partners Qivalis, UniKA, and FairSquareLab.
How does Project Pangea improve FX transactions?
It reduces settlement delays by enabling direct Payment-versus-Payment swaps using stablecoins.
§ 08
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