Goldman Sachs, Citi among banks said to commit $270 million to stablecoin venture
Goldman Sachs, Citigroup and other financial firms committed about $270 million to cover five years of operating costs for a joint stablecoin venture known as Project Faro, Bloomberg reported on Tuesday.
The group, which also includes Santander and Deutsche Bank, raised the funds to cover five years' operational costs at the new company, which was revealed in September, according to the report, which cited people familiar with the matter.
Wells Fargo, Fidelity, MUFG and Standard Bank are also involved in the venture, which will issue a dollar-denominated stablecoin and is expected to be incorporated in the U.S.
Global Currency Plans
Project Faro also aims to develop stablecoins pegged to other Group of 7 currencies, with a euro-denominated token taking priority. Stablecoins — digital tokens that track the value of a traditional financial asset, usually a fiat currency — are at the forefront of cryptocurrency adoption by financial institutions.
The commitment comes as over 140 companies joined forces to develop the Open USD stablecoin in June, including Stripe, Visa, Mastercard and BlackRock.
Industry Response
The Faro-participating banks did not immediately respond to CoinDesk's request for comment. The venture represents a significant step in mainstream financial institutions' embrace of digital currency technologies.
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