Goldman, Citi and Global Banks Commit $270 Million to Challenge Crypto’s Stablecoin Giants
Goldman Sachs, Citi, Santander and Deutsche Bank are among banks committing roughly $270 million to a joint dollar-stablecoin venture codenamed 'Project Faro'.
The capital is meant to cover five years of operations for a planned U.S.-incorporated company that will issue a dollar-denominated stablecoin. Known among participants as Project Faro, the venture is still searching for a chief executive, and its final name remains under discussion.
A spokesperson for the project declined to comment, as did Santander and Deutsche Bank, while Goldman and Citi referred questions to the project.
Growing Consortium
The funding represents a concrete next step for an initiative first announced publicly in September 2026, when 21 of the world's largest financial institutions committed to forming a company to issue a U.S. dollar stablecoin. The consortium has since more than doubled from an initial group of 10 banks that began exploring the idea in October 2025.
Beyond the four named by Bloomberg, participants include Bank of America, Wells Fargo, Fidelity Investments, PNC, Capital One, TD Bank, UBS, BBVA, Deutsche Bank, Lloyds Banking Group and MUFG, among others. JPMorgan notably is not on the list.
Market Challenge
The venture joins a wave of bank stablecoin efforts targeting a market worth roughly $290 billion, where Tether's USDT and Circle's USDC together account for about 85%. When the bank consortium first went public in September, Circle's stock fell about 6% as investors priced in competition for USDC.
The banks are betting that institutional trust, regulatory alignment and existing client networks can win them a share of a settlement business that promises round-the-clock, cross-border payments at lower cost than traditional rails.
Regulatory Approach
The token is being designed to comply with the U.S. GENIUS Act, which created the first federal framework for dollar-pegged tokens in 2025, and where applicable, the EU's MiCA regime. The group has expressed its desire for the stablecoin to be used across wholesale, institutional and retail markets.
For now, Project Faro remains pre-launch, with no issued token, no named CEO, not even a final name, and a 2027 target that leaves ample room for delay. However, the $270 million commitment signals that this bank consortium intends to compete for the onchain dollar rather than leave it to crypto-native players.
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