Twenty-one financial institutions, including Goldman Sachs, Citigroup, and Deutsche Bank, have teamed up to launch stablecoins pegged to G7 currencies.

Major banks worldwide are preparing to build new digital currency infrastructure that could compete with existing stablecoin companies. Reports say 21 financial institutions have pledged about $270 million to the initiative, known as Project Faro.

Global banks involved in the project include Citigroup, Goldman Sachs, Banco Santander, Deutsche Bank, and BBVA. The funds raised are intended to cover the new company’s operations for approximately five years. Its first product will be a stablecoin pegged to the US dollar, targeted for launch in the first half of 2027.

Project Faro is not limited to a dollar-pegged stablecoin. In the longer term, the company reportedly plans to issue digital tokens pegged to G7 currencies, with a euro-backed stablecoin potentially coming after the dollar token. The new company is expected to be based in the US, though its corporate structure has not yet been finalized.

Direct stablecoin issuance by banks could reshape the current market, which is now dominated by Tether’s USDT and Circle’s USDC. A bank-backed token could give institutional clients another option for regulatory compliance, reserve management, and connections to traditional payment systems.

The $270 million commitment does not guarantee that the stablecoins will launch on the specified date. The initiative still needs to establish the company, define its reserve model, and secure the necessary regulatory approvals. The process may also be affected by whether 21 financial institutions operating in different countries can agree on technical and legal standards.

*This is not investment advice.

Source: en.bitcoinsistemi.com. Adapted by NBTC.