Major Banks Invest $270 Million in New Stablecoin Issuer
Goldman Sachs and Citi back digital currency project for global payments and asset settlement.
A consortium of major global banks has allocated approximately $270 million to fund a new stablecoin issuer. The investment aims to cover five years of operations for the initiative known internally as Project Faro.
The group includes institutions such as Goldman Sachs, Citigroup, Banco Santander, and Deutsche Bank. The new entity is expected to be incorporated in the United States with the goal of launching a dollar-pegged digital currency in the first half of 2027.
The project seeks to serve both institutional and retail markets. Its strategy includes facilitating cross-border payments and the settlement of digital assets on public blockchains. Following the dollar version, the group plans to develop an option backed by the euro.
The initiative intends to operate in compliance with the US GENIUS Act and the European MiCA regulation. The consortium expanded to 21 institutions in September 2026 and is currently searching for a chief executive to lead the structure.
The entry of traditional banks into the stablecoin sector may increase competition with established issuers like Tether and Circle. The move reflects the pursuit of greater integration between the conventional financial system and digital asset technology.
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