Goldman Sachs, Citi and Deutsche Bank back $270 million stablecoin project

A group of major financial firms including Goldman Sachs, Citigroup, Banco Santander, and Deutsche Bank have committed approximately $270 million to fund a new stablecoin issuer, according to sources familiar with the initiative. This project, known internally as Project Faro, is being developed by a coalition of 21 banks and financial institutions.

Funding and leadership plans

The $270 million in commitments is intended to support the operational costs of the stablecoin venture for its first five years. Project Faro’s backers are in the process of incorporating the issuer in the United States and continue to search for a chief executive to lead the firm.

At this stage, the involved parties have not disclosed whether the committed funds will be provided in the form of equity or other financial instruments. Details about the exact contribution from each participating bank and the blockchain technology that will underpin the stablecoin remain undisclosed. None of the participating banks or the consortium have issued public statements about the funding.

Stablecoin rollout strategy

The project aims to release its first stablecoin pegged to the US dollar, addressing a market largely dominated by two issuers: Tether’s USDT and Circle’s USDC. As of this week, data from DefiLlama shows that dollar-pegged stablecoins in circulation total around $293 billion. USDT accounts for approximately $176 billion and USDC for about $70 billion, jointly representing 84% of the market share.

Backers of Project Faro plan to launch a US dollar-pegged stablecoin initially, focusing on capturing a share in a market currently led by USDT and USDC, with a broader objective to eventually support other Group of Seven (G7) currencies, beginning with the euro.

According to the group’s prior statements, the issuer’s launch is scheduled for the second half of 2026, pending closing conditions. Market entry is targeted for the first half of 2027, with an ambitious plan to add euro and possibly other G7 currency stablecoins in subsequent phases.

Participants and regulatory focus

Apart from the four main banks identified, the list of participants in the 21-member group includes Bank of America, Wells Fargo, Fidelity Investments, BBVA, Lloyds Banking Group, and MUFG Bank. The initiative expands on a previous effort by 10 banks, who announced in October 2025 the exploration of a reserve-backed digital currency.

The consortium states that it intends to adhere to both the U.S. Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act and the European Union’s Markets in Crypto-Assets (MiCA) regulation where relevant. The official name of the new company is still pending announcement.

Mini dictionary: GENIUS Act – The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act is proposed U.S. legislation designed to provide a regulatory framework for stablecoins, emphasizing consumer protection and market transparency. MiCA – The Markets in Crypto-Assets (MiCA) regulation is an EU law aimed at harmonizing rules for crypto-asset markets, including stablecoin oversight, across member states.

Rival stablecoin and deposit token projects

Project Faro’s launch will place the group in direct competition with other stablecoin and tokenized deposit efforts. Some of the same banks, including JPMorgan, Citi, Bank of America, and Wells Fargo, are developing a tokenized deposit network which could enable customers to use bank deposits on blockchain technology. This initiative is also expected to reach the market by 2027.

Additionally, the Open USD stablecoin, supported by companies such as Coinbase, Visa, and Stripe, already circulates approximately $924 million, according to DefiLlama data.

Bank-backed and private stablecoin ventures continue to expand, highlighting the growing competition in the digital currency space as regulatory clarity emerges internationally.