A group of major global banks has committed $270 million to develop a new stablecoin venture targeting the growing digital payments market. Goldman Sachs, Citigroup, Banco Santander, and Deutsche Bank are among the institutions backing the initiative.
Bloomberg reported that the funding will support five years of operations for the planned US-based issuer. The project, internally known as Project Faro, targets a commercial launch in the first half of 2027.
Banks Target Stablecoin Market Dominance
The consortium wants to challenge established stablecoin issuers, particularly Tether and Circle. These companies control approximately 85% of the $290 billion stablecoin market. Hence, traditional lenders see an opportunity to compete through established banking relationships and institutional infrastructure.
Additionally, the group plans to appoint a chief executive to oversee development and operations. Its initial product will track the US dollar before expanding into other G7 currencies. A euro-backed token ranks among its priorities.
Regulatory Support Strengthens Expansion Plans
Project Faro also reflects growing interest in regulated digital payment systems. The venture intends to serve businesses, institutions, and individual users.
Moreover, the GENIUS Act and Europe’s MiCA framework provide clearer regulatory foundations. The consortium has expanded from 10 founding lenders to 21 international institutions. Participants include Bank of America, UBS, Fidelity Investments, and Wells Fargo.
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