Goldman, Citi Among Banks Backing $270 Million Stablecoin, Report Says
The money covers five years of running costs for a planned U.S. issuer codenamed Project Faro. It has no chief executive yet and aims to launch in early 2027.
Goldman Sachs, Citigroup, Santander and Deutsche Bank are among the banks that have committed about $270 million to a joint stablecoin company, Bloomberg reported Tuesday, citing people familiar with the matter.
The money is meant to pay for five years of operations at the planned issuer, codenamed Project Faro, which is expected to be incorporated in the U.S., according to the report. None of the banks or the venture has commented publicly on it, Unchained reported.
Two issuers hold most of the market
The bank group is going after a market that two companies dominate. Stablecoins in circulation totaled about $292.8 billion on Tuesday evening, with Tether's USDT at about $175.8 billion and Circle's USDC at about $70.0 billion, per DefiLlama.
How a stablecoin issuer makes money
A stablecoin is a token meant to stay worth $1. Buyers hand over dollars, and the issuer holds those dollars in reserve, mostly as cash and short-term government debt, so it can pay anyone back on request. The issuer keeps the interest the reserves earn. Project Faro's $270 million is a different pot: it pays for running the company, while the reserves would come from the people who buy the token.
Twenty-one firms, no CEO yet
The 21 firms said on Sept. 1 that they would form the company in the second half of 2026, subject to closing conditions. A dollar token comes first, with a euro version the next priority among other Group of Seven currencies, and the group is aiming for a commercial launch in the first half of 2027, Investing.com reported. Members also include Bank of America, Wells Fargo, Fidelity Investments and MUFG Bank.
The venture still has no name. It also has no chief executive; backers are still searching for one, per the report.
The reports don't say how much each bank is putting in, whether the money is equity, or which blockchain the token will use. The group has said it plans to follow the U.S. GENIUS Act and the EU's MiCA rules where they apply.
In our opinion: the stake is the interest on reserves, which today goes mostly to Tether and Circle on about $246 billion of combined tokens. A bank-owned issuer would compete for that income with five years of running costs already paid for. The next checkable steps are a company name, a CEO hire and a chosen blockchain, and none of them exists yet.
Sources: Bloomberg Law: Goldman, Citi Among Banks in $270 Million Stablecoin Backing · Unchained: Goldman, Citi and other banks reportedly fund $270 million stablecoin · Investing.com: Goldman, Citi join global banks in $270 million stablecoin ventur · DefiLlama: Stablecoins
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