Chainlink has joined Project Pangea, a cross-border settlement initiative that brings together banks operating in Europe and South Korea. While the total managed asset size of the parties exceeded 10 trillion dollars, the LINK price declined in the short term despite the announcement. At the time of the news, the token was trading around $7.57 and had fallen approximately 5 percent in the last 24 hours.
Project Pangea’s goal
Project Pangea, in collaboration with Chainlink, FairSquareLab, UniKA and Qivalis, will test the use of regulated stablecoins in euros and South Korean won in foreign exchange transactions between Europe and South Korea. The main purpose of the initiative is to bring the euro won settlement, which is traditionally completed in the T+2 period, closer to the T+0 model.
Qivalis, which is involved in the project, stands out as a euro stablecoin consortium supported by 37 European banks. UniKA is a South Korea-based banking alliance representing more than 10 commercial banks. The parties aim to conclude foreign exchange transactions in near-real time.
Mini dictionary: Payment versus payment is a settlement method that aims to realize payments in two different currencies simultaneously. In the atomic swap structure, both legs of the transaction are completed, and if one of the parties fails, the transaction is canceled.
In this structure, Chainlink will provide the infrastructure that will connect existing banking systems and blockchain-based consensus networks. The company’s middleware solution is designed to convert Swift and ISO 20022 payment instructions into on-chain settlement instructions. Thus, banks may not need to completely replace their existing payment systems.
Technology and trade corridor to be used
It is planned to use Chainlink’s Cross Chain Interoperability Protocol, Data Streams and Chainlink Runtime Environment tools in the project. These tools are expected to support cross-chain transfers, high-speed foreign exchange market data, and coordination between blockchain-based consensus layers with Swift messages.
FairSquareLab will provide on-chain currency settlement technology and the Pangea L1 Network infrastructure that will host atomic currency swaps. The system aims to complete both sides of a money transaction simultaneously and cancel the transaction if one of the parties cannot fulfill its obligation.
The initiative focuses on the Europe-South Korea trade corridor, through which over $150 billion in goods and services flows annually. Although the daily transaction volume in the global foreign exchange market is over 9.6 trillion dollars, a significant portion of cross-border transactions are still carried out through brokerage firms and delayed payment lines.
Description of Chainlink and LINK price
Chainlink official Niki Ariyasinghe stated that the project is not intended to remain only as a proof of concept, but is aimed to achieve live transactions in accordance with the legal and regulatory framework within the next 12 months.
Chainlink did not position this work as a direct competitor to existing payment networks. Its role, according to the company, is to provide technology that enables banks to connect to on-chain finance through their existing systems. Regulated stablecoins will form the digital cash leg of the settlement.
On the other hand, LINK maintained its weak outlook in the short term. The token retreated from the $7.85 to $7.90 range and approached the $7.50 to $7.55 support zone. While the first resistance area is located in the $ 7.60 to $ 7.65 band, the $ 7.80 to $ 7.90 range must be overcome again for a stronger recovery.
ETF flow data was also effective in the selling pressure. According to Arca data, the Chainlink spot ETF market saw a net outflow of $490,920 on June 22. Thus, the 203-day period without negative daily data ended. Cumulative net inflow decreased from 123.82 million dollars to 123.33 million dollars. On the technical side, the RSI was at 34.94 while the MACD continued to remain below zero. Although this outlook indicates that the downward momentum may slow down, it is considered that stronger purchasing volume is required for a clear change in direction.
