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Goldman Sachs, Citigroup and other financial institutions have committed approximately $270 million to Project Faro, a joint stablecoin venture, Bloomberg reported. The funding is intended to cover five years of operations.
Why it matters
The group plans to establish a US-based company to issue a dollar-denominated stablecoin in the first half of 2027, followed by a euro-denominated stablecoin. Participants also include Santander, Deutsche Bank, Wells Fargo, Fidelity, UBS and Lloyds Banking Group.
Market impact
The venture is intended to compete with established issuers Tether and Circle, whose stablecoins account for roughly 85% of the global market. The planned launch would bring a consortium of major financial institutions into direct competition with those issuers.
Frequently asked questions
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How will Project Faro use the committed funding?
The approximately $270 million commitment is intended to cover five years of operations.
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When does Project Faro plan to issue its dollar stablecoin?
The group plans to issue a dollar-denominated stablecoin in the first half of 2027 through a US-based company.
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Does Project Faro plan a stablecoin denominated in euros?
Yes. A euro-denominated stablecoin is expected to follow the planned dollar-denominated launch.
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Which institutions are participating alongside Goldman Sachs and Citi?
Participants include Santander, Deutsche Bank, Wells Fargo, Fidelity, UBS and Lloyds Banking Group. The venture involves 21 financial institutions.
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Which established issuers is Project Faro seeking to challenge?
The venture aims to compete with Tether and Circle, whose stablecoins account for roughly 85% of the global market.
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