Ten South Korean banks have entered working-level discussions with European financial institutions on a cross-border remittance system built around stablecoins. The effort is part of the Pangea Project, a proof-of-concept led by Unica and Kyvallis that is testing whether transfers can be streamlined by exchanging stablecoins linked to different currencies.
The participating Korean banks include KB Kookmin Bank, Shinhan Bank and Woori Bank. While the project is moving into practical discussions with counterparties in Europe, any full commercial rollout still depends on regulatory approvals in both regions, including progress on South Korea’s Digital Asset Basic Act and licensing for a euro-denominated stablecoin under the EU’s MiCA framework.
Pilot moves into bank-to-bank discussions
The project has advanced to direct talks between the Korean lenders and European financial institutions at the working level, indicating that the initiative has moved beyond a purely conceptual stage. Ten banks in South Korea are involved in the discussions, though only some participants have been publicly identified.
A recent meeting to review progress brought together Kyvallis, SWIFT, Chainlink and most of the participating banks. That session focused on the status of the proof-of-concept rather than a confirmed launch timeline for a market-ready remittance product.
How the remittance model is designed to work
Pangea is testing a model in which stablecoins pegged to different currencies are swapped during the transfer process. The stated aim is to reduce the number of intermediary steps that are typically involved in overseas remittances.
In practical terms, the concept is tied to plans for both a euro-based stablecoin and a won-denominated stablecoin. If developed and approved, those instruments would form part of the settlement path for transfers between jurisdictions rather than relying entirely on conventional correspondent banking chains.
Regulatory approvals remain the main constraint
The biggest obstacle to commercialization is regulation. In South Korea, the project is linked to the Digital Asset Basic Act, and delays in that legislation are currently limiting the ability to launch a full remittance service.
On the European side, the project also depends on obtaining MiCA licensing for a euro stablecoin. According to the report, a decision on that licensing could come as early as September, making it a near-term checkpoint for the initiative.
What comes next
Further discussions are planned around Korea Blockchain Week, alongside renewed talks with domestic banks and the Bank of Korea. Those conversations are expected to shape how the project proceeds once there is more clarity on the legal framework.
Financial authorities are aiming to speed up related legislation in the second half of the year, potentially through a lawmaker-initiated bill. Until those legal issues are resolved, the Pangea Project remains a proof-of-concept and a platform for coordination between banks, infrastructure providers and regulators rather than a confirmed commercial remittance network.
Source: en.bloomingbit.io