A group of major global banks has pledged $270 million to develop a stablecoin venture aimed at the expanding digital payments market. Backers include Goldman Sachs, Citigroup, Banco Santander and Deutsche Bank.

Bloomberg reported that the funding is intended to cover five years of operations for the planned US-based issuer. The project, known internally as Project Faro, is targeting a commercial launch in the first half of 2027.

Banks Target Stablecoin Market Dominance

The consortium aims to challenge established stablecoin issuers, especially Tether and Circle. Together, those companies control approximately 85% of the $290 billion stablecoin market. Traditional lenders see an opportunity to compete by drawing on their established banking relationships and institutional infrastructure.

The group also plans to appoint a chief executive to lead development and operations. Its first product will track the US dollar, with plans to expand into other G7 currencies. A euro-backed token is among its priorities.

Regulatory Support Strengthens Expansion Plans

Project Faro also signals growing interest in regulated digital payment systems. The venture plans to serve businesses, institutions and individual users.

The GENIUS Act and Europe’s MiCA framework also offer clearer regulatory foundations. The consortium has grown from 10 founding lenders to 21 international institutions. Participants include Bank of America, UBS, Fidelity Investments and Wells Fargo.

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Source: coinedition.com. Adapted by NBTC.