Global banks commit $270 million to stablecoin venture
By Brie CarterKey points
- A consortium of 21 global financial institutions committed approximately $270 million to develop Project Faro.
- The funding will support five years of operations, targeting a commercial launch in the first half of 2027.
- The banks aim to challenge established stablecoin issuers through dollar-backed payments and future G7 currency expansion.
A consortium of global banks has committed approximately $270 million to Project Faro, according to a report by Bloomberg.
The venture brings together 21 financial institutions seeking to compete with established cryptocurrency companies in digital payments.
Goldman Sachs Group Inc (NYSE:GS), Citigroup Inc (NYSE:C), Banco Santander (BME:SAN) and Deutsche Bank AG (XETRA:DBK) are among the participating lenders.
The $270 million commitment will finance the planned US-incorporated stablecoin issuer's first five years of operations.
Project Faro initially plans to issue a dollar-pegged stablecoin before expanding into other G7 currencies, prioritising the euro.
The initiative builds on exploratory work launched in late 2025 by 10 founding lenders seeking reserve-backed digital currencies on public blockchains.
The global stablecoin market holds approximately $290 billion in circulation, with Tether (USDT) and Circle (USDC) controlling around 85%.
The venture positions traditional banks to compete directly with established stablecoin issuers across the expanding digital payments market.
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