Goldman Sachs and Citigroup are among banks that have committed about $270 million to a joint stablecoin company, Bloomberg reported Tuesday.
Banco Santander and Deutsche Bank also joined, according to to people knowledgeable about the subject. The money is intended to cover five years of operation of the new company, which will issue a dollar-denominated stablecoin and is expected to be incorporated in the United States, the sources said.
Participants call the initiative Project Faro. The project is still looking for a general director and its final name remains under discussion. Goldman and Citi referred questions to a project spokesperson, who declined to comment.
Ten founders became 21
Project Faro dates back to October 10, 2025, when ten banks said they were jointly exploring a form of digital currency backed by 1:1 reserves on public blockchains, focused on G7 currencies. Barclays and BNP Paribas were part of this group, alongside the four banks cited by Bloomberg.
On September 1, the group expanded to 21 establishments and committed to creating a company in the second half of 2026, subject to closing conditions. New members included Wells Fargo, Fidelity Investments, Lloyds Banking Group and Standard Bank. Barclays and BNP Paribas were not on the September list.
The consortium initially plans a dollar token, with a market launch planned for the first half of 2027. After that, the group’s priority is a euro version. The group said the product would serve wholesale, institutional and retail markets, including cross-border payments and digital asset settlement. It intends to comply with the US GENIUS Act and European Markets in Crypto-Asset (MiCA) rules, where applicable.
Banks support competing projects
Bank of America, Citi and Wells Fargo are also supporting a separate blockchain payments effort. These three banks were building a token deposit network called The Bridge through the Clearing House, the Wall Street Journal reported in June. The report predicts the launch of this network in the first half of 2027.
European banks run a separate euro project through Qivalis, an Amsterdam company backed by 37 banks in 15 countries. On October 14, Qivalis said the Dutch central bank had authorized it as an electronic money institution.
New entrants have struggled to chip away at Tether and Circle’s lead, Bloomberg noted. Tether’s USDT has approximately $176 billion in circulation, according to DefiLlama. Circle’s USDC comes in second with around $70 billion. All dollar-pegged stablecoins tracked by DefiLlama total around $293 billion.
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