Major Banks Commit $270 Million to New Stablecoin Venture

Goldman Sachs, Citigroup, Banco Santander, and Deutsche Bank have collectively committed approximately $270 million over five years to establish a new company focused on issuing a dollar-denominated stablecoin, according to Bloomberg.

The venture, internally referred to as Project Faro, is expected to be incorporated in the United States and is currently in the process of selecting a chief executive officer. The initiative originated from an exploration by ten banks in October 2025 into the potential of 1:1 reserve-backed digital money on public blockchains, with a focus on G7 currencies. By September 2026, the group had expanded to include 21 institutions.

The consortium aims for a market launch of its dollar token in the first half of 2027, with plans to introduce a euro version subsequently. The project aims to serve wholesale, institutional, and retail markets, with potential applications in cross-border payments and digital asset settlement. The venture intends to comply with relevant regulatory frameworks, including the US GENIUS Act and the EU’s Markets in Crypto-Assets (MiCA) rules.

This development enters a stablecoin market currently dominated by issuers like Tether, whose USDT has approximately $176 billion in circulation, and Circle, with its USDC holding around $70 billion. The total market capitalization for dollar-pegged stablecoins tracked by DefiLlama is estimated at about $293 billion.

In parallel, other banking initiatives are underway. Bank of America, Citigroup, and Wells Fargo are reportedly developing a separate tokenized deposit network called The Bridge through The Clearing House, with a reported launch target in the first half of 2027. In Europe, a separate euro project is being managed by Qivalis, an Amsterdam-based company backed by 37 banks across 15 countries, which recently received authorization as an electronic money institution from the Dutch central bank.

It remains uncertain whether Barclays and BNP Paribas, which were part of the initial ten-bank exploration group, are still involved in the expanded consortium. The new company’s final name is also still under discussion.

Why This Matters

The materials describe a narrow update: Goldman Sachs, Citigroup, Banco Santander, and Deutsche Bank have committed approximately $270 million over five years to a new joint venture, internally known as Project Faro, which aims to issue a dollar-denominated stablecoin. The final name of the joint stablecoin company.

Broader Context

Source materials place the factual news in this context: Goldman Sachs and Citigroup are among the banks that have committed about $270 million to a joint stablecoin company, Bloomberg reported on Tuesday.