Global Banks Invest $270 Million in New Stablecoin Project

A group of major global banks has allocated approximately $270 million to fund the development of a dollar-pegged stablecoin. The investment aims to cover five years of operations for a new United States-based company. Known internally as Project Faro, the initiative is currently searching for an executive to lead its efforts.

The consortium includes institutions such as Goldman Sachs, Citigroup, Banco Santander, and Deutsche Bank. The full list of backers features 21 financial entities from North America, Europe, Asia, and Africa. The group plans to launch the currency in the first half of 2027.

This move represents an attempt by traditional institutions to gain ground in a market dominated by crypto-native firms. Currently, Tether and Circle hold approximately 85% of the stablecoin sector, which has a market value near $290 billion. Other companies like Visa and Mastercard are also pursuing similar solutions.

The banks' strategy focuses on institutional trust and regulatory alignment to attract clients. The goal is to offer cheaper and more accessible cross-border payments around the clock. The consortium intends to expand the offering to currencies like the euro after the debut of the dollar version.