Banks commit $270 million to joint stablecoin initiative Project Faro

A coalition of major financial firms including Goldman Sachs Group Inc., Citigroup Inc., Banco Santander SA, and Deutsche Bank AG has pledged approximately $270 million toward a joint stablecoin venture, according to a report by Bloomberg citing people familiar with the matter. Known internally among participants as Project Faro, the initiative plans to form a U.S.-incorporated issuer for a dollar-denominated token.^[1][2][3]

The funding is designed to cover five years of operational expenses for the newly planned company, which was originally detailed by a 21-institution group earlier in the year. Project Faro is currently conducting a search for a chief executive officer, while its final legal name remains under discussion. The venture aims to launch its dollar-pegged stablecoin in the first half of 2027, with plans to later issue tokens pegged to other fiat currencies, starting with the euro.^[2]

Initially conceived last year by a smaller group of institutions to explore reserve-backed digital assets on public blockchains, the project has expanded globally to include firms such as Wells Fargo, Fidelity Investments, UBS, and Lloyds Banking Group. Representatives for Santander and Deutsche Bank declined to comment to Bloomberg, while Goldman Sachs and Citigroup referred inquiries to a spokesperson for the project, who also declined to comment.^[2]