A coalition of 21 financial institutions, including Goldman Sachs, Citigroup, and Bank of America, has committed approximately $270 million to a joint stablecoin venture known internally as Project Faro, according to people familiar with the matter who spoke with Bloomberg. The consortium is targeting a commercial launch in 2027.
Funding to Cover Five Years of Operations
The $270 million commitment will finance the first five years of operating expenses for a new U.S.-incorporated stablecoin issuer, Bloomberg reported. The funding is separate from the reserves backing the stablecoins, which participants expect to maintain on a 1:1 basis using eligible assets.
Participants Span Five Continents
The initiative brings together institutions from across traditional finance. In addition to Goldman Sachs, Citi, and Bank of America, participants include Wells Fargo, Fidelity Investments, Deutsche Bank, Santander, UBS, and Capital One. Other members are PNC Financial Services, Scotiabank, TD Bank Group, Wisdomtree, BBVA, Commerzbank, Crédit Agricole, Lloyds Banking Group, Rabobank, MUFG Bank, Sirius International Holding, and Standard Bank.
The consortium’s origins date to October 2025, when 10 banks began exploring reserve-backed digital currencies operating on public blockchains. By Sept. 1, 2026, participation had expanded to 21 institutions, which announced plans to establish a dedicated company.
CEO Search Underway
Project Faro remains an internal designation rather than an official corporate name. Bloomberg’s Anna Irrera and Arno Schuetze reported that participants are searching for a CEO while preparing for a commercial launch during the first half of 2027.
Competing in a $290 Billion Market
The proposed issuer enters a stablecoin market valued at nearly $290 billion, where Tether’s USDT and Circle’s USDC collectively account for roughly 85% of outstanding supply. Unlike cryptocurrency-native competitors, Project Faro intends to capitalize on established banking relationships, international payment networks, and institutional distribution. Its initial dollar-pegged token would serve wholesale, institutional, and retail markets, with cross-border payments and digital asset settlement among the intended applications. A euro-denominated stablecoin is expected to follow, potentially extending the venture into additional Group of Seven currencies.
Regulatory Framework
The consortium intends to operate within the U.S. GENIUS Act and Europe’s Markets in Crypto-Assets (MiCA) framework, as applicable. Signed into law July 18, 2025, the GENIUS Act establishes reserve, disclosure, and supervisory requirements for permitted payment stablecoin issuers, providing a clearer legal foundation for regulated dollar-backed tokens. The regulatory framework is expected to take effect in January 2027.
Uncertainties Remain
The consortium has not disclosed its preferred blockchain networks, reserve custody arrangements, redemption infrastructure, or final ownership structure. Its plans also remain subject to closing conditions. The project comes at a time when the stablecoin supply and the tokenized U.S. treasury market have witnessed a downturn over the last month.
The $270 million commitment demonstrates considerable institutional ambition, but financial backing alone cannot guarantee adoption. Project Faro must still secure approvals, establish dependable infrastructure, and persuade customers to embrace its token. Ultimately, the venture’s greatest test will be converting banking influence into genuine stablecoin demand.
