By The 21-institution consortium plans to launch a U.S. dollar-backed stablecoin in early 2027, challenging Tether and Circle as global banks expand into blockchain-based payments. Goldman Sachs, Citigroup, Banco Santander and Deutsche Bank are among major financial institutions that have reportedly committed approximately $270 million to a joint stablecoin venture, marking a significant expansion of traditional banking into digital asset payments. The initiative, internally known as Project Faro, will use the funding to cover five years of operating expenses for a planned U.S.-incorporated stablecoin issuer, Bloomberg reported on November 10, 2026, citing people familiar with the matter.
The consortium comprises 21 international financial institutions and aims to introduce its first U.S. dollar-denominated stablecoin in the first half of 2027. The group is currently searching for a chief executive, while the company’s final name remains undecided. The funding commitment represents an operational investment rather than the reserves required to back stablecoins in circulation. Individual contributions and ownership stakes have not been disclosed.
Project Faro Brings Together 21 Global Financial Institutions
The venture builds on an initiative announced in October 2025, when ten international banks began exploring the development of digital money backed one-to-one by reserve assets and available on public blockchains. By September 2026, the group had expanded to 21 institutions and formally announced plans to establish a dedicated stablecoin company. Participating organizations include Bank of America, Wells Fargo, Goldman Sachs, Citigroup, Fidelity Investments, Capital One, PNC Financial Services, UBS, Banco Santander, Deutsche Bank, Lloyds Banking Group and MUFG Bank. Other members include BBVA, Commerzbank, Crédit Agricole, Rabobank, TD Bank, Scotiabank, WisdomTree, Standard Bank and Sirius International Holding.
The consortium intends to serve wholesale, institutional and retail financial markets, focusing on cross-border payments and digital asset settlements. Its initial offering will be pegged to the U.S. dollar, with plans to expand into stablecoins denominated in other Group of Seven currencies. A euro-backed token is the next priority. The venture aims to combine the participating institutions’ payment networks, customer relationships and compliance infrastructure to create a regulated alternative to existing stablecoins. However, no token ticker, blockchain network, reserve custodian or finalized commercial launch date has been announced.
Banking Consortium Targets $293 Billion Stablecoin Market
Project Faro enters a market dominated by Tether and Circle, whose USDT and USDC stablecoins collectively account for approximately 84% of the $293 billion dollar-pegged stablecoin market. As of November 10, USDT had approximately $176 billion in circulation, while USDC accounted for around $70 billion, according to DefiLlama-based market data. The consortium’s entry could introduce competition in institutional payments, particularly among businesses already using participating banks for treasury management and international settlements. Regulatory developments have also strengthened interest in bank-issued stablecoins.
The U.S. GENIUS Act, signed into law in July 2025, established a federal framework covering reserve backing, redemption rights and oversight of payment stablecoin issuers. On October 21, 2026, the Office of the Comptroller of the Currency finalized implementing regulations scheduled to take effect on January 18, 2027. Project Faro also intends to comply with the European Union’s Markets in Crypto-Assets regulation where applicable. Nevertheless, the venture must secure appropriate regulatory permissions and demonstrate commercial demand before launching. The reported $270 million commitment signals growing institutional investment in stablecoin infrastructure, but the initiative remains in development, with its competitive impact dependent on execution, distribution and adoption.