FairsquareLab has announced a strategic partnership with Chainlink to advance cross-border stablecoin payments. The collaboration will integrate Chainlink’s Cross-Chain Interoperability Protocol (CCIP) into Phase 2 of Project PAX, an initiative focused on building a stablecoin-based remittance network between major financial institutions in South Korea and Japan.

Project PAX brings together prominent partners, including South Korea’s Shinhan Bank, NH NongHyup Bank, and K Bank, alongside Japan’s Progmat and other banking groups. The project’s core mission is to bridge traditional banking systems with stablecoin technology. By streamlining the flow from fiat to stablecoin and back, it aims to lower remittance costs, accelerate transaction times, and simplify settlement across different blockchain networks for regulated financial entities.

Connecting Financial Ecosystems

The integration of CCIP is a critical step toward validating real-time, cross-network fund transfers. FairsquareLab and Chainlink will work together to establish the technical standards and operational frameworks necessary for reliable interoperability. This technology is essential for closing the gaps between separate blockchain ecosystems, which in turn enhances the transparency and traceability of funds within existing regulatory guidelines.

By enabling secure data and asset transfers, the partnership seeks to strengthen financial infrastructure. Standardizing how payment networks connect helps reduce the risks associated with informal transfer channels and supports broader compliance efforts, including Anti-Money Laundering (AML) protocols.

A Blueprint for Mainstream Adoption

Under the new Memorandum of Understanding (MOU), the two organizations will explore how CCIP can serve as the interoperability standard for Project PAX’s remittance layer. This will ensure transactions remain compliant and auditable as they move between different blockchain environments.

FairsquareLab CEO Joonhong Kim described the collaboration as a vital move toward implementing blockchain interoperability in real-world financial systems. He added that the company plans to expand its use of Chainlink’s technology across the broader stablecoin infrastructure it’s building with financial partners.

Niki Ariyasinghe, Chainlink’s Head of Business Development for Asia-Pacific and the Middle East, emphasized the regional ambition behind the partnership. Ariyasinghe noted that working with FairsquareLab will help speed up CCIP adoption in Asia by allowing financial institutions to move value and data across multiple chains seamlessly and reliably.

Ultimately, the announcement signals a coordinated effort to bridge regulated financial services with emerging blockchain tools. If the pilots for Project PAX succeed, they could create a proven model for banks and remittance providers to use stablecoins for faster, cheaper, and more traceable international payments.